ITVEO Formatted Table

ITVEO PRODUCT
ENGG950 Innovation and Design
Antonio Jose Baron Torres, Muhammad Sajid, Pengcheng Du and Alex Macharia
5/31/2016

This report seeks to show the processes involved in the innovation and design of a product that Formatted Table
eventually can be commercialised. The report follows the guidance and principles of innovation
and design. It has Considerable research on product identification that has been done to divergent
and convergent process, product embodiment and analysis of its market potential upon
introduction to the Australian market. All this was done for a successful completion of this report
demonstrating that ITVEO is a product with a great market potential that meets the engineering
innovation design standards.
Executive Summary
This report describes the innovation, design and development of an innovative product,
based on engineering design processes. These processes involved the identification of
opportunities from real world problems, intensive research on the opportunities,
developing and selection of possible solutions and finally communicating the desired
solution to an audience with a great commercialization potential.
In the initial stage of problem identification and opportunity, our research identified several
problems regarding life experience exited. Three potential product ideas were considered,
the T-shirt organiser, Proximity adviser and Flat furniture for RV from a dozens of other
potential product ideas.
The next stage involved the selection of the main product idea that would be pursued by the
team. This would later involve the divergent and convergent processes to arrive at one main
product idea. Using Weighted Constraint Matrix, it helped us to arrive to the T-shirt
organiser as our selected product idea. Other important tools used in this process stage
consisted of design tree, process tree and TRIZ to support the development of the most
feasible solutions. Pugh design tool in the convergence process helped in selection of
desirable design for the t-shirt organiser after consideration of all concept solutions. It was
also imperative that the desired design had to focus on green design and product lifecycle to
ensure that our product will be ecologically friendly.
Then, the importance of a marketing continuity cannot be underestimated and was
seriously considered by the design team members. Regarding the market current behaviour
divided in sector, size, competitors, lifecycle and price. This called upon an intensive and
detailed marketing analysis and marketing strategies. We also carried out further analysis
through SWOT analysis and BCG matrix. It should be noted that the price of product is a very
important factor in determining whether customers will buy it or not. The product price had
to be competitive and market friendly to all potential users of the product. In addition, we
conducted the protection of IP because an effective IP assessment and strategy which
yielded a crucial result to patent the product. This would ensure the ITVEO product is
protected from infringement and recognized as an Australian product.
Commercial feasibility for ITVEO was looked at alongside risk analysis to see the overall
feasibility of the project. This needed to take to account of the behaviour of the market
lifecycle and also the BCG matrix. The ITVEO product has great potential to be
commercialized and reap good profit for any potential investor willing to invest in this
innovative product.

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Contents
1 Introduction .................................................................................................................................... 6
2 Potential Product Ideas ................................................................................................................... 7
2.1 Problem 1: T-Shirt Organiser.................................................................................................. 7
2.1.1 Problem Description ....................................................................................................... 7
2.1.2 Opportunity Statement ................................................................................................... 7
2.1.3 Preliminary Solution ........................................................................................................ 7
2.2 Problem 2: Proximity Advisor ............................................................................................... 11
2.2.1 Problem Statement ....................................................................................................... 11
2.2.2 Opportunity Statement ................................................................................................. 12
2.2.3 Concept ......................................................................................................................... 12
2.3 Problem 3: Flat Furniture for RV ........................................................................................... 13
2.3.1 Problem Statement ....................................................................................................... 13
2.3.2 Opportunity Statement ................................................................................................. 13
2.3.3 Concept Solution ........................................................................................................... 14
2.4 Selected Product Idea ........................................................................................................... 16
2.4.1 Weighted Constraint Matrix ......................................................................................... 16
3 The product ................................................................................................................................... 18
3.1 Divergence process ............................................................................................................... 18
3.1.1 Process tree T-shirt Organiser....................................................................................... 18
3.1.2 Design Tree, Brainstorming and Reverse Brainstorming .............................................. 20
3.1.3 TRIZ (Theory of the Inventive Problem Solving) ........................................................... 23
4 Green Design and Product Lifecycle ............................................................................................. 26
4.1 Green Design Considerations................................................................................................ 26
4.1.1 MDF- Medium-density fibreboard ................................................................................ 26
4.1.2 Particle board ................................................................................................................ 26
4.1.3 PVC ................................................................................................................................ 26
4.1.4 ABS ................................................................................................................................ 27
4.1.5 Acrylic ............................................................................................................................ 27
4.1.6 Glass .............................................................................................................................. 27
4.1.7 Pine wood ..................................................................................................................... 28
4.1.8 Polycarbonate ............................................................................................................... 28
4.1.9 Aluminium ..................................................................................................................... 28
4.1.10 Cardboard ..................................................................................................................... 29
4.1.11 Vulcanised rubber ......................................................................................................... 29

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 4.2 Product Lifecycle ................................................................................................................... 30
4.2.1 Overview of the Product Lifecycle ................................................................................ 30
4.2.2 Material Acquisition ...................................................................................................... 30
4.2.3 Material Processing and Manufacturing
 ..................................................................... 31
4.2.4 Packaging & Transport .................................................................................................. 31
4.2.5 Useful Life...................................................................................................................... 31
4.2.6 Disposal ......................................................................................................................... 31
4.2.7 Conclusion ..................................................................................................................... 31
5 The Convergence Process ............................................................................................................. 32
5.1 Pugh Design Boundaries Access ............................................................................................ 32
5.2 Concept Elimination Round .................................................................................................. 33
5.2.1 Hybrid Concept Solutions.............................................................................................. 34
5.3 Controlled Convergence ....................................................................................................... 34
5.3.1 Concept Elimination ...................................................................................................... 35
5.4 Summary of Concept Solutions ............................................................................................. 36
5.4.1 Preliminary Solution ...................................................................................................... 37
5.4.2 Process Tree .................................................................................................................. 37
5.4.3 Design Tree ................................................................................................................... 38
5.4.4 Brainstorming and Reverse Brainstorming ................................................................... 39
5.4.5 TRIZ................................................................................................................................ 39
5.4.6 Hybrid Concept Solutions Convergence Process .......................................................... 40
6 Conceptual Embodiment of the Selected Product ....................................................................... 41
7 Intellectual Property ..................................................................................................................... 43
7.1 Trade Mark ............................................................................................................................ 44
7.2 Registered Design ................................................................................................................. 44
7.3 Patent .................................................................................................................................... 45
7.3.1 Prior Art ......................................................................................................................... 45
7.3.2 AUSPAT.......................................................................................................................... 45
8 Market Analysis ............................................................................................................................. 46
8.1 Preliminary Market Analysis ................................................................................................. 46
8.1.1 Market Sector ............................................................................................................... 46
8.1.2 Market Size ................................................................................................................... 47
8.1.3 Market Competition...................................................................................................... 48
8.1.4 Market Lifecycle ............................................................................................................ 50
8.1.5 Market Price .................................................................................................................. 53
8.2 SWOT Analysis....................................................................................................................... 54

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 8.3 Conclusions Market Analysis................................................................................................. 55
9 Market Entry ................................................................................................................................. 56
9.1 Product .................................................................................................................................. 57
9.2 Place ...................................................................................................................................... 57
9.3 Promotion ............................................................................................................................. 59
9.4 Price ...................................................................................................................................... 60
10 Commercial Feasibility .............................................................................................................. 60
10.1 Venture revenue ................................................................................................................... 60
10.2 Costs Analysis ........................................................................................................................ 62
10.2.1 Organisational Structure ............................................................................................... 62
10.2.2 Variable Costs................................................................................................................ 64
10.2.3 Targeted Investments ................................................................................................... 67
10.2.4 Total Venture Cost ........................................................................................................ 67
10.2.5 Venture Earnings ........................................................................................................... 67
10.2.6 Financial Indicators ....................................................................................................... 69
11 Commercial Risk Analysis .......................................................................................................... 70
11.1 Risk Categories ...................................................................................................................... 70
11.2 Risk Identification.................................................................................................................. 72
11.3 Risk Consequences ................................................................................................................ 76
11.4 Risk Treatment ...................................................................................................................... 78
11.5 Expected Monetary Value ..................................................................................................... 79
12 Conclusions ............................................................................................................................... 80
13 References ................................................................................................................................ 82
APPENDIX A: ELIMINATION OF CONCEPTS BY PUGH’S CONTROLLED CONVERGENCE ........................ 84
APPENDIX B: ITVEO GENERAL ARANGEME ........................................................................................... 85
APPENDIX C: PROJECT WORKLOAD ...................................................................................................... 86
APPENDIX D: QUOTES ........................................................................................................................... 87
APPENDIX E: RISK EVALUATION ............................................................................................................ 98
APPENDIX F: REFLECTIONS.................................................................................................................. 102

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1 INTRODUCTION

There is increasing number of vertical cities in major Australian cities like Sydney,
Melbourne and Brisbane. It is increasingly becoming important for home owners both old
and new to find ideal spaces for their living. People have more house hold stuff but the
house spaces are becoming smaller forcing them to look for spaces that work for them. The
housing market is showing a trend of space saving house or building block design which in
some way is helping meet the needs of future home owners. This is evident in the private
rooms in terms of wardrobe spaces or walk-in closets. People want to have enough space to
store their clothes like t-shirts.
The purpose of this document is to provide our readers with a comprehensive and
progressive development of a T-shirt organiser. From the initial identification of a problem
to the financial feasibility of the innovative product.
We started from the identification of problems found in different environments in our
surroundings, such as the problem when accessing clothes from the drawers and the
problem to create commercial furniture for rv industries. This was followed by a preliminary
solution for the problems and the opportunity statement of each one, addressing the
environment, performance, function, user interaction and market. Concluding through the
application of an analytical tool referred as the “Weighted Constraint Matrix” (WCM) to
decide based on technical, technological and financial constraint which is the most
convenient product, as defined by the authors.
Subsequent to the WCM, our readers will find a detailed development and application of
tools used in the divergence process, including the “Theory of Inventive Problem Solving”
TRIZ, and various concept solutions that converge applying Pugh’s design considerations
during the “Convergence Process”. Thereafter, with a description of the Product Lifecycle
and Green Design Considerations that meet standards of environmental friendliness. And as
the Final Embodiment of an Innovative Product that demonstrates versatility, organisation
and space saving.
A detailed description of the market analysis and strategies are followed of the innovative
design to evaluate it commercial viability in the Australian market.
Concluding with the analysis of the financial feasibility and risks analysis: including the total
operative costs for the venture during its market life-cycle, revenues, and financial
indicators that describe the viability of the product from an economic perspective. Finalising
with the EMV (expected monetary value) that assess and compares this product with low
risks investments and concluding with a positive outcome for the venture.

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2 POTENTIAL PRODUCT IDEAS

2.1 PROBLEM 1: T-SHIRT ORGANISER

2.1.1 Problem Description

When selecting a t-shirt to wear from a drawer in the closet, generally we find that we open the
drawer to find the shirts folded in piles (in the best cases) accessing the bottom shirts makes it more
difficult to keep the top shirts organised, or having to look in the whole pile for a specific shirt
increases the inconvenience to select the desired item, keeping the storage organised, as well as the
necessity to visualise them by unfolding and observing which one will suit the occasion. There are
websites where authors have tried to give solutions to the different problems presented in our
normal lives. Plan_and_Organize_Life.com, suggests that they can be stored by “Files”, increasing
the number of folds to the shirt but still having the problem that if the rails of the drawer do not let
the whole drawer slide out, we will miss the shirts at the back, they also, recommend products to
add divisions to the drawers or DIY solutions cutting cardboard boxes in halves
(Plan_and_Organize_Life.com)

Through different experiences in life, we have found that this is a common problem that requires a
smart solution to store and access t-shirts without wasting time and efficiency.

2.1.2 Opportunity Statement

We aim to improve organisation at home and make life easier for everyone in Australia. This is by
developing a compact and space efficient device that can be installed in any storage space or in a
wide range of drawers found in wardrobes. This device will be used to store folded t-shirts that
display the colour or image of the shirt when accessing them, while at the same time maintaining
the shirts that are not required neat and organised. The expected life would be similar to a drawer
or wardrobe at home in normal use according to the design specifications. The user should be able
to store, access and select the desired t-shirt in a friendly way that does not require extra force or
effort for this purpose. The intended market for this product is home owners that find in their
homes the necessity to improve their storage systems due to small areas to place conventional
storage systems.

2.1.3 Preliminary Solution

In our approach to a preliminary solution, the application of inventive tools, as well as, previous
personal experience was used to develop the problem statement.

The application of Root Cause Analysis (RCA) was applied to develop a solution as a starting point for
this document, although not the most efficient. This led to further research for a better
understanding of the problem.

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2.1.3.1 5 Why’s Approach

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Why do we Store Items?
Problem • To mantain things in place, easy to
remember
Why conventional chest of drawers do not have addequate height to
maintain items organised?
They are develop providing users a free decision as to which items they can
store and methods used to organise the items.
A drawer is designed to attach its components with conventional fixtures or
joinery methods, resist the structural stresses presented caused by the
weight and internal pressure generated by items, as well as, uses
conventional materials and fabrication processes to keep costs to a
minimum. Also, has to be light and easy to slide in the rails and easy to
assemble. Every component used to design a drawer will occupy a dead
space, more drawers more space.
Boundary: Use higher strength materials to resist the stresses by internal
pressure to reduce the volume used by components, easy to fabricate and
assemble.
Solution: Low height box made of higher strength
materials to reduce the space used by components and
resists the stresses of weight and internal pressure,
with an effective storage volume around 470cm3 to
contain a standard XL t-shirt in place and easily
remember its location.
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Why are t-shirts are stored in Drawers?
The cubic shape is one of the most efficient, in terms of space utilisation and
the amount of volume that it can contain.
Drawers are an improvement of a regular box, easy to access when they are
neatly arranged in columns.
The chest of drawers is an aesthetical pile of boxes.
In conclusion t-shirts are stored in drawers, because the box is highly
efficient storage. Provides easy access to users and can be stacked in piles in
a chest of drawers
Why is it complicated to access stored items in drawers?
As the box allows us to store items efficiently making use of the space, it also
allows us to insert a number of items to occupy the total volume. As t-shirts
and other clothes fill the volume and depending on the users organisation
methods, it be make difficult to access the items in the bottom.
The extraction methods in chest of drawers before the development of
telescopic guided rails, made the box back end access inaccessible due to the
mechanism of conventional guided rails or slots in the cabinet preventing
the full extraction of the box from the chest of drawers.
More items stored in the box, more height, more difficult the access.
Concept: Reduce box height, replace guided rails by telescopic rails / Change
the access mechanism
 Why are t-shirts are stored in Drawers?

The cubic shape is one of the most efficient, in terms of space utilisation and
the amount of volume that it can contain.
Why do we Store Items?
Drawers are an improvement of a regular box, easy to access when they are
Problem • To mantain things in place, easy to
neatly arranged in columns.
remember
The chest of drawers is an aesthetical pile of boxes.

In conclusion t-shirts are stored in drawers, because the box is highly

efficient storage. Provides easy access to users and can be stacked in piles in
a chest of drawers

Why conventional chest of drawers do not have addequate height to
maintain items organised?
They are develop providing users a free decision as to which items they can
store and methods used to organise the items.
A drawer is designed to attach its components with conventional fixtures or
joinery methods, resist the structural stresses presented caused by the
weight and internal pressure generated by items, as well as, uses
conventional materials and fabrication processes to keep costs to a
minimum. Also, has to be light and easy to slide in the rails and easy to
assemble. Every component used to design a drawer will occupy a dead
space, more drawers more space.
Why is it complicated to access stored items in drawers?
As the box allows us to store items efficiently making use of the space, it also
allows us to insert a number of items to occupy the total volume. As t-shirts
and other clothes fill the volume and depending on the users organisation
methods, it be make difficult to access the items in the bottom.
The extraction methods in chest of drawers before the development of
telescopic guided rails, made the box back end access inaccessible due to the
mechanism of conventional guided rails or slots in the cabinet preventing
the full extraction of the box from the chest of drawers.
More items stored in the box, more height, more difficult the access.

Boundary: Use higher strength materials to resist the stresses by internal Concept: Reduce box height, replace guided rails by telescopic rails / Change
pressure to reduce the volume used by components, easy to fabricate and the access mechanism
assemble.

Solution: Low height box made of higher strength

materials to reduce the space used by components and
resists the stresses of weight and internal pressure,
with an effective storage volume around 470cm3 to
contain a standard XL t-shirt in place and easily
remember its location.

Figure 1 - Five Why's Preliminary Solution Approach

This device, as described, is a compartment made of materials with a young modulus in the range of
1-15GPa such as Natural Materials (woods, bamboo, etc..), polymers and composites, with the
possibility to increase the storage by buying additional compartments, with a clear lid made of
similar strength materials; that can store a certain number of t-shirts in a compacted way within a
limited space.

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 Figure 2 - Conceptual Preliminary Solution

2.2 PROBLEM 2: PROXIMITY ADVISOR

2.2.1 Problem Statement
The problem arises when you are travelling in your car on the road. The vehicle behind you gets too
close to your vehicle, sometimes trying to overtake you very closely causing you to panic and
eventually committing a mistake or sudden braking that can cause the car behind to hit you thus
causing an accident. Another problem is the blind spot when a vehicle is trying to overtake you thus
you won’t even know if a vehicle in high speed quickly will overtake you causing difficulties for road
safety. And while parking a vehicle some people park very close thus giving you no space to move
your vehicle.

Formatted Table

The three main problems that the increasing number of vehicles and the decreasing efficiency of
modern busy parking lots are:

 Valuable time wasted from inconvenient and inefficient parking lots

o On average, 3.5 - 12 minutes spent waiting for a spot in urban parking lots
 More fuel consumed while idling or driving around parking lots, leading to more CO2 emissions
being produced
o Average distance travelled looking for a spot = 1.2km
o Average CO2 produced per car per day = .14 kg CO2
 Potential accidents caused by abundance of moving vehicles in disorganized parking lots
o 413 accidents occurred in public parking lots in Canada last year
o There were 788 parked car collisions, 5 being fatal
o 2/3 of traffic accidents in parking lots involve only 1 moving vehicle
 Parking Structure Issue!
o 1/3 of these accidents involved 2 moving vehicles

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  Parking System Issue

2.2.2 Opportunity Statement

Our goal is to build a traffic and road monitoring system for intelligent road and efficient parking
system. A sensor monitoring distance which tells you that how close a vehicle is from you and
display on a small LCD which is placed at the back of your car to show the driver behind you that “He
is very close” or say “Please maintain safe distance”. And while parking the sensor would tell you
that vehicle is parked very close.

2.2.3 Concept
To start with the concept first of all we have to add a distance monitor sensor with great accuracy. It
has to monitor constant changing speeds of the vehicle and whenever a vehicle comes to its radar it
has to immediately respond and transfer the proper signal to the processor who then transfers the
signal to LED. The other thing that we can do is to change the distance or the range of the sensor
according to our needs. For example, while parking and driving in the city the distance should be 1
meter at least and should be more while driving on highways and motorways e.g. 5m minimum.

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2.3 PROBLEM 3: FLAT FURNITURE FOR RV
2.3.1 Problem Statement
When choosing holidays, families and couples are looking for more affordable ways to
obtain the best experiences and adventures. Alternative solutions arise when budget is
limiting especially when looking for accommodation. Almost 85% of Australians have had at
least once in their lifetime a camping or caravanning experience according to the Caravan
Industry Association of Australia 2015(Research). The Australian Bureau of Statistics
(Australian Bureau of Statistics. 2015)reports that there has been an increase of 20.2% of
campervans registered since 2010 with an average annual growth of 3.9%. Further
researches (Wenban, M, 2014 pers. com., 20 Dec) business owner of DIY RV Queensland
states that “Nowadays, we have a great opportunity to start developing products for this
market”.
Personal experience in the caravan industry as well as researching DIY motor home forums
and a passion for the caravan and motor home industry in Australia, with over eight years
observing experts and less experienced people developing DIY projects that involve design
and fitting out furniture, I found that most of these projects; making caravan furniture or
converting conventional vans into motor homes, is in a big part an energy consuming
process used on costly time consuming dimensioning mistakes and final product
improvements instead of focusing energy in building the dream space and hit the road!
Flat pack furniture in the RV world still seems an unexplored market due to the complexity
of fabrication, physical requirements, spacing and fitting out that can be developed similar
to IKEA’s business model, creating affordable and aesthetical designs that meet the physical
requirements of the field; improving the current fabrication techniques, materials and
providing outstanding customer support for their DIY conversion projects.

2.3.2 Opportunity Statement

Therefore, with a rising market we will seek the development of furniture for the outdoor,
camping and recreational vehicles in Australia. Through the design and outsourced
fabrication of lightweight, aesthetical, ergonomic, compact, reliable, functional furniture
that can be easily adapted for these purposes. Reducing the amount of time, effort and
space for the customer when used for RVs or outdoor recreation.
They will be designed to be durable, similar to conventional household furniture when used
according to specifications.
The products will be sold through an online store, promoted in the RV world through
magazines, RV stores, shows, camping and outdoor stores and retail business.

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2.3.3 Concept Solution
To obtain a concept solution for the purpose as previously described, it was necessary to
identify a subject of study that can contain in its components a representation of most of
the furniture found at home.
Therefore, the kitchen was selected as the study subject due to its assembly complexity.
Analysing the fabrication and manufacturability of household and recreational vehicle
furniture, establishing as a starting point the plates that form the furniture’s structural
members as well as the weight factor for any furniture as described in Figure 3
A simplified process tree to install a box with doors, comparing the RV and conventional flat
pack furniture, in addition to a brainstorming process, was used to approach the proposed
concept solution.

Figure 3 - RV and Household Furniture Comparison

As shown in Figure 4 approach to the solution to fabricate and assemble the main components
based in the requirements of RV furniture.

Composed of a wood frame or low-density structural material that is permanently bonded or

attached to a skin to bring aesthetics to the design. Between the structures is positioned or bonded
a honeycomb made of recyclable materials to improve the structural stability of the assembly as well
as assisting the positioning of components to attach other members of the furniture.

The assembly approach was made with kerfs that fit into the slots of the sandwich and are
permanently held in place by two or more dowels.

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Figure 4 - Concept Solution RV Furniture

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2.4 SELECTED PRODUCT IDEA
2.4.1 Weighted Constraint Matrix
From the previous ideas the group has selected that the most convenient product which it is the t-
shirt organiser due to the mutual comprehension of the problem, although, there are uncertainties
whether the product is viable, for this reason to assist in the decision that will be used during the
development of this document, we used a weighted constraint matrix (WCM) starting by the
definition of the parameters that are relevant to the group as described below.
Parameter Description Rank Formatted Table

Design: The product must require low design effort to reduce the engineering investment during 10
this product phase.

Prototyping: The stage of prototyping should be as minimum as possible similar to the design parameter. 8
As more prototyping required, more resources invested in the product, unless has high
profitable market that will worth the prototyping investment.

Eco-Sustainability: The interests in new product designs are based in creating products friendlier to the 7
environment. The product should use minimum resources during the fabrication stage and
sustainable materials.

Affordability: It is defined in the (Webster) dictionary as “being within the financial means of most 7
people”. It is one of the key factors when customers are able and also willing to invest an
amount of money to purchase a product which has a reasonable price and meet customer
needs. Being less affordable would reduce the market size but it is dependent of the niche
market.

Manufacturability: The product is intended to be manufactured with local suppliers; conventional conversion of 7
raw materials into components should be used. Complexity on design will increase the value
of the final product.

Market Size: Market size can facilitate the promotion of the product and sponsoring. Defined by the 6
amount of customer needs covered by the product and its affordability.

Market Promotion: Creating a product difficult to promote would use high resources for the initial investment. 10

Initial Investment: The product will require an initial investment defined by the possibility of fabrication, 5
materials and previous parameters. However, it is not transcendental if the product can
represent elevated profits and be sponsored.

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 Know-How of Group: A product should be as possible comprehended by everyone in the group, where the 9
application of our skills can be reflected during the development of the project.

Research Effort: The research effort should be maintained as minimum, complex designs and products can 10
diverge into a high time-consuming research effort.

Available resources: Taking into consideration the design needs we must be aware that we have enough 8
available resources to be able to produce the idea.

The following analysis was done by the group in relation to the products selected, within the defined
parameters. T-shirt organiser will be selected as the study subject product obtaining 740 weight
compared to the other products which were 630 and 680, being the Flat Furniture RV and Proximity
Advisor respectively. With this analysis we conclude with the selection of the product.

Constrain 5 Score Flat Furniture RV T-shirt Organiser Proximity Advisor Formatted Table
High/Low Rank Rank Score Weighted Score Weighted Score Weighted Score
Score Score
Design: Easy/Complex 10 5 50 7 70 5 50
Prototyping: Easy/Complex 8 4 40 5 50 2 20
Eco-Sustainability: High/Low 7 7 70 7 70 4 40
Affordability: High/Low 7 5 50 8 80 5 50
Manufacturability: High/Low 7 8 80 8 80 8 80
Market Size: High/Low 6 4 40 7 70 10 100
Market Promotion: Easy/Complex 10 8 80 5 50 8 80
Initial Investment: Easy/Complex 5 5 50 4 40 6 60
Group Know-How: Yes/No 9 5 50 8 80 5 50
Research Effort: Easy/Complex 10 4 40 7 70 5 50
Available resources: High/Low 8 8 80 8 80 10 100
Total 87 63 630 74 740 68 680

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3 THE PRODUCT

3.1 DIVERGENCE PROCESS

The divergence process will be the development of possible conceptual solutions that must comply
or modify (if necessary) the opportunity statement of the selected product. For the development of
these concepts, we will use a Process Tree, Design Tree, Brainstorming and Reverse Brainstorming
and The theory of inventive problem solving (TRIZ), concluding with a summary of the concepts
obtained from the divergence process.

3.1.1 Process tree T-shirt Organiser

The following process tree describes the typical process used by families to collect from the
laundry, store and utilise their clothes. The inputs are the description than answers the
question, why do I need to do that action? The output generally answers the question, what
do I obtain from that action? The corrective changes for the inputs as well as for the outputs
are possible solutions to the problem that will be further developed during a convergence
process. Each of the devices or solutions is described in figures from 3 to 7.

Corrective Change Input Process Output Corrective Change Formatted Table

STORAGE
Need to pick up dry Pick up T-shirts from Wrinkle T-shirt
clothes clothes line
Feature wall, flat Need to carry from Collect them in a basket Bulk of dry clothes
wardrobe or shelving to one place to another
store the t-shirts in the
laundry. Figure 5
Need to prepare for Ironing Re-arrangement of the Add heat by friction with
storage without molecular structure of hands to pre-remove some
wrinkles textile (polymer) by the wrinkles and storing them
addition of heat in the laundry
Flexible, reliable and Need to make it Folding Less area used by the t-
minimal thickness device suitable for the shirt in the storage
that can hold the shape current storage
of the folded t-shirt. space, maintaining it
Figure 6 in good condition

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 Need to access the Open the drawer to store When sliding the box- External accessory or
storage them shaped compartment is furniture exclusive for t-
accessible to store the shirts that can provide
items, it keeps the clothes easy access and storage by
clean and free of dust extending it. Figure 7
Hard and clear Need to increase the Compress the already Obtained extra space to
compartment to hold one volume of the space, stored to open space for store new items, old items
or two t-shirts at the applying external clean ones compressed
same time. Tight closed force and dragging or
by pressing the covers compressing the
and compressing the t- current items to store
shirts or items inside. new ones
Figure 8
Need to store the T- Insert the clean ones in the all items arrange in piles,
shirts new space heavily compressed
Need to save home Close drawer Items stored away from
space or close the view and return to normal
wardrobe door space at home
USING A T-SHIRT
Need to access Open drawer or wardrobe
stored items
Need to visualise the Observe and decide which The visualisation of items
items to take a one to use facilitates the decision
decision
Need to access Take some t-shirts out if Unorganised items,
bottom, or back of the one needed is in an unnecessary out of the
the draw inaccessible place original place
Need to increase the Make space again in the Make space again to store
volume of the space, drawer the t-shirts previously
applying external stored
force and dragging or
compressing the
current items to store
extracted ones
Put the already messy t- Store the extracted t-
shirts in the drawer shirts, maybe not well
folded, or need to fold
again
Need to free space at Force close the drawer Free space at home and
home and sometimes wearing the desired t-shirt
because there's a
hurry there's no time
to fold them properly
Corrective Change Input Process Output Corrective Change

3.1.1.1 Process Tree Summary of Solutions

 Low depth storage  Flexible and Formatted Table

or shelving with resistant
divisions that can be compartment that
anchored to the wall can hold the shape
where required. of the folded t-shirt
when stored.

19
 Figure 5–Concept 2: Feature
Figure 6– Concept 3: Flexible
Wall
Holder

 Retractable storage  Hard compartiment,

that can be to store individual t-
possitioned where shirts and assist
required, anchored with the
to the wall or in the compression of the
floor. Contains t-shirt.
individual
compartments.

Figure 7–Concept 4:
Retractable Storage

Figure 8– Concept 5:
Individual Hard Container

3.1.2 Design Tree, Brainstorming and Reverse Brainstorming

The design tree as shown in the table below was developed applying the method as described by
Kroes (2015) dissecting by component the products associated with the problem, the attributes
related with each component and the corrective changes that can be applied to solve the problem. It
is highly important to keep a clear problem description while performing the divergence process as it
is fundamental to define or visualise possible solutions.

During the execution of ideas developed in the design tree, family members were included to
generate more ideas with a clear explanation of the problem. From the results given by one of the
family members Figure 15(Wenban S (2016 pers. comm., 2 April) that were not previously
conceptualised was a mix between brainstorming solutions and reverse brainstorming.

The reverse brainstorming question was stated as follows:

20
How do we keep the t-shirts unfolded and disorganised?

Solution to the reverse brainstorming: Throwing and keeping them on the floor after collecting them
from the clothes line.

Reverse: Compacting and hanging them in the wardrobe.

3.1.2.1 Design Tree Development

Assembly Component Attribute Corrective Changes Formatted Table
Drawer Width Reduced to fit only one pileFigure 9
Depth Sliding base for greater accessFigure 10
Height Reduce side plates height to access with easeFigure 11
Shape Rotational with divisions to access rear clothesFigure 12
Type Plastic Container, sleeveFigure 13
Main Structure Thickness
Width
Height Different configurations of the volume storage, increase height and
Chest of Depth reduce depth, (future wall, process tree Figure 5)
Drawers Handles Material
Ergonomic
Shape
Force Magnetic Latches to flip front face downFigure 10
Runners Shape
Material
Mechanism
Relative Movement Vertical movement to extract a rear compartment aided with a gas
strutFigure 14

3.1.2.2 Design Tree Summary of Solutions

 Narrow drawers to fit  Sliding box Formatted Table
only one row of t-shirts inside the
compartiment
with magnetic
latches to
access from the
front.

Figure 10–Concept 7: Sliding Base

Figure 9–Concept 6: Narrow Drawers for
Wenban S (2016 pers. comm., 2
one Pile
April)

 Reduced drawer side  Additional

wall height to facilitate rotational
access to items in the compartiment.
bottom

Figure 11–Concept 8: Side Plates Height

Reduced Figure 12–Concept 9: Rotational
Drawer Insert

21
  Sliding and flexible  Retractable rear
sleeve that can store compartiment
individual t-shirts and is aided with a gas
stored folded in the strut to enhace
drawer. pulling force

Figure 14– Concept 11: Retractable

Compartment

Figure 13–Concept 10: Container Sleeve.

Wenban S (2016 pers. comm., 2 April)

3.1.2.3 Brainstorming – Reverse Brainstorming Summary of Solutions

 Cardboard device used to assist the folding of t-shirts and remain Formatted Table
closed with magnets attached. Contains holes in the sides to
insert hooks that in the other end provides a hanger shape to
store in the wardrobe hanger.

22
 Figure 15–Concept 12: T-shirt Library
Wenban S (2016 pers. comm., 2 April)

3.1.3 TRIZ (Theory of the Inventive Problem Solving)

The following table describes the relationship of the selected features to improve according to the
problem described in this document and selected from the 40 Inventive Principles of TRIZ and the
possible contradictions that will be caused by a modification of the improvements, followed by
inventive principles obtained by accessing the TRIZ (Theory of Inventive Problem Solving) matrix.
This method was designed by Genrich Altshuller and his colleges by studying over a million patents
identifying patterns that led inventors to solve problems. Altshuller found that relating an
improvement feature with its worsening feature matches with certain inventive principles that could
assist to solve the problem as found in (Kroes, 2015, p. 35, 36)
Item Feature to Altshuller Improving Possible Altshuller Contradiction Inventive Formatted Table
Improve Feature Worsening Principle
a Easy to extract 33. Ease of operation Increase the 3. Length of Moving 1, 17, 13, 12
the t-shirts Length of the Object
drawer
b Improve the 8. Volume of Stationary Affect the original 12. Shape 7, 2, 35
volume occupy by Object shape of the t-
t-shirts shirts
c Improve the way 35. Adaptability or Use more time to 22. Loss of Time 18, 15, 1
t-shirts are in the Versatility fold them and
drawer arrange them
d Make various 7. Volume of moving object Affect the height 4. Length of stationary 1, 7, 4, 17
drawers to of the wardrobe / object / 35. Adaptability
allocate one pile difficulty to adapt or Versatility
of t-shirts to old wardrobes

The table below describes the inventive principle according to the matrix and the concepts obtained
from the inventive principles used to create new products.
No Inventive Principles (Kroes, 2015, p. 127-142) Obtained Concept Formatted Table

1 Segmentation: Divide and object into independent parts Rectangular containers with clear lid that can be attached with
others by magnetic force Figure 16

23
 2 Taking out or extraction: Extract the only necessary part T-shirt filing cabinet, as used to filing documents. Figure 17

4 Asymmetry: Change the shape of an object to suit Not applicable concept obtained
external asymmetries

7 Nested Dolls: Place multiple objects inside others Foldable cubic shape with storage in the internal and external faces
Figure 18

12 Equipotentiality: If an object has to be raised or lowered, Four-bar system attached to the movable base of the drawer
redesign the object’s environment so the need to raise or Figure 19
lower is eliminated or performed by the environment.

13 The other way round: Make movable parts (or the Not applicable concept obtained
external environment) fixed and fixed parts movable

15 Dynamics: Change from immobile to mobile, Change the Not applicable concept obtained
object (or outside environment) for optimal performance
at every stage of operation

17 Another Dimension: Go from single storey or layer to Multiple thin drawers or compartments that allocates only one
multi-storey layered single pile of t-shirts Figure 20

18 Mechanical Vibration: Not applicable concept obtained

35 Parameter Change: Change the physical state, change the Intelligent material for t-shirt that can fold it automatic by applying
degree of flexibility, use memory alloys, use high electric current.
conductivity materials.

3.1.3.1 Summary of TRIZ Solutions

 Containers  Cabinet with divisions Formatted Table

attachable with and sliding beds that
others by can store one t-shirt
electromagnetic
force, to insert in
drawers and easy
handle

Figure 16–Concept 13: Segmentation Figure 17–Concept 14: Taking out

 The cube unfold is  Four-bar or similar

made of 6 faces, mechanism attached
each face contains to the drawer that
storage divisions. extracts the clothes
from the drawer as it
is opened

24
Figure 18–Concept 15: Nested Dolls Figure 19– Concept 16:
Equipotentiality

 Used as example of
TRIZ a division of
one drawer into
multiply drawers.
Not applicable due
to analysis obtained
during the
development of
preliminary concept.

Figure 20–Concept 17: Another

Dimension

25
4 GREEN DESIGN AND PRODUCT LIFECYCLE

4.1 GREEN DESIGN CONSIDERATIONS

In the manufacture of the t-shirt organiser, will need to be made of various components that meet
our specifications but most importantly the desired function. This is the primary objective. In order
to achieve this, the t-shirt organiser has to use raw materials that are considered to be
environmentally friendly, commonly known as ‘Green Materials’. This will not only reduce or even
have no negative effect to the environment but will greatly appeal to the ecological conservation of
nature if disposed of.

After careful considerations the following materials are the possible materials that are selected for
use for the design and manufacture of the t-shirt organiser.

4.1.1 MDF- Medium-density fibreboard

This is a panel of uniform density that usually have a fine and smooth surface which is quite ideal for
cutting, painting, machining and even drilling without chipping or splinters.

This particular product has the potential to have a high quality finish need to the t-shirt organiser
manufacture. MDF comes in different sizes and also thickness making it highly and easily usable and
more over flexibility of use.

In Australia, MDF is made from radiate pine which is usually grown in plantations though other
products like waste paper, fibres and other woods. According to research from en.wikipedia.org,
MDF has increasingly improved in terms of environmental impact and actually, the manufactures
involved in making MDF are coming under more pressure to make greener MDF products. As a result
of this pressure, new raw materials like straw and bamboo are being used in the manufacture of
MDF. Bamboo and straw fibres are a fast-growing renewable resource.

4.1.2 Particle board

This is a wood product that is normally engineered by being manufactured from sawmill shavings,
saw dusts and even wood chips. In the market it is quite cheaper in terms of cost as compared to
other forms of wood like plywood. This product or raw material is of similar nature to the MDF,
though particle board is of much lower density than MDF.

Particle boards also come in different densities which would definitely relate to their strength. The
only drawback is that, if it is not protected from moisture, it tends to expand and discolour. This
means, it is a material that should not be used in environments that have high moisture content.

4.1.3 PVC
PVC stands for polyvinyl chloride. It is a synthetic plastic polymer which is widely produced. This
comes in two basic forms usually, as rigid or flexible. The rigid form can be found in the use for
bottles and bank cards while the flexible form can be seen in use in the electrical cable insulation as
a good example of an application.

Figure 21 - PVC Recycling Code

26
4.1.4 ABS
This is another form of thermoplastic polymer; acrylonitrile butadiene styrene. It is made up of a
chemical combination between styrene and acrylonitrile but with also the presence of
polybutadiene. The styrene will give the material that is the plastic a shiny and impervious surface
while the polybutadiene, which is a rubbery substance, will provide toughness to the plastic
material.

One of its common applications in the world is in the making of lego bricks, common consumer
goods. This is possible because of its toughness, a mechanical property of ABS. It also has very good
formability and can be easily machined. It is due to this fact that it is commonly used for mechanical
purposes.

ABS is recyclable.

4.1.5 Acrylic
Acrylic or acrylic glass is a great alternative to normal glass. It is a transparent thermoplastic often
light-weight and even shatter-resistant.

This material is also a great option to polycarbonate in terms of economics.

Qualities of acrylic are:

 moderate properties
 easy to handle
 easy to process and
 it is low cost

One of its physical characteristic is that it is a transparent material which makes it versatile.
Therefore, it has found its use in wide areas in the environment. For instance, it has been used in the
making of aquarium view glasses and even in skylights

4.1.6 Glass
This is also a very common material used in day to day life.

It has got a lot of application ranging from;

 House glassware
 Vehicle windows
 Building windows among others.

The reason why it is widely used is solely because of it is optical properties.

Glass is a really great example of a highly recyclable material, and in Australia, it is recommended
that people clearly dispose glass wares in the proper bins so that the municipal council services can
have them recycled for other purposes. In Australia, most glass municipal wastes are made up of
bottles and broken glassware. Through recycling of glass, it saves the world by reducing the
greenhouse gas emissions.

27
Figure 22 - Glass Recycle Code

4.1.7 Pine wood

Pine wood is from conifer trees. It is a commercially important tree species because of its timber
value. Pines are known to be fast growing type of softwood and those grown for commercial use are
normally in plantations.

Pine wood has many application areas ranging from being used in making high value furniture but
also in panelling, window frames, house floors and roofing.

This is one of the ecological raw materials that does not have negative effects on the environment.
This is a material that not only can it be reused but also can be disposed of and expected to degrade
over time. Therefore, I do have very little greenhouse gas emission.

Pine wood is a renewable resource making it have the following recycling code:

Figure 23 - Pine Recycle Code

4.1.8 Polycarbonate
This is a material that is in the group of thermoplastic polymers. This material in engineering fields is
generally tough, strong and even some of the polycarbonate grade is transparent. Polycarbonate
does not only have low scratch-resistance but it is also very durable despite having a high impact-
resistance.

Qualities of polycarbonates are:

 has high transparency

 it can hold up to longer extreme temperatures
 It can undergo large plastic deformations without cracking or breaking

4.1.9 Aluminium
This is the most abundant metal on earth making it the most used material as well. A good example
in its extensive use is in the aerospace industry as a structural component. All metals have their ores
and bauxite is its chief ore. In the world, Australia is a top producer of bauxite ore meaning it is also
a big producer and exporter of alumina. In Australia it is quite easy to mine the bauxite because its
location on the earth crust is shallow making it relatively easily to mine.

Aluminium has great ability to resist corrosion and because it has got low density, it is also of low
weight. Aluminium is also highly recyclable.

28
Figure 24 - Aluminium Recycle Code

4.1.10 Cardboard
Cardboard by definition is a generic term to define a heavy duty paper that has various strengths.

This is a very simple material but it is highly recyclable. They can be recycled for either home use or
for industrial purposes. It has been reused as animal bedding where it shredded and spread in an
animal’s enclosure.

Figure 25 - Cardboard Recycle Code

4.1.11 Vulcanised rubber

This is a special kind of rubber where through a process of vulcanization, which usually involve
adding of sulphur, to natural rubber. This process will make the natural rubber more durable.
Natural rubber is obtained from latex which is a milky white fluid.

Qualities of this kind of rubber are that it

 Has great durability

 Lacks stickiness and
 Can be deformed and still recover to its original shape

Recovery of this rubber can be difficult but in developing countries, where there are large numbers
of waste rubber tyres. The recovery process, for instance, is re-treading or re-grooving of the waste
tyres. This helps to reduce environmental degradation that can be caused by rubber wastes.

NB. In green design, it important that the materials used should adapt some common hierarchy
control of disposal, where by engineers are expected to make sure there is:

 Reduction
 Reuse
 Recycling and
 Disposal

All waste should be handled in accordance to the state laws or regulations.

29
4.2 PRODUCT LIFECYCLE
The life of a single product is introduced in the part, including the materials taken from the earth to
the end-of-life reuse.

4.2.1 Overview of the Product Lifecycle

Figure 26 - Process of recycling from the material acquisition to disposal.

4.2.2 Material Acquisition

All materials of the product can be made from recycling materials and environmental protection
material.
Materials Recycling code Formatted Table

30
 PMMA  It has enough hardness to keep the shape of product
 It has enough transparency

Aluminium  Very good strength to weight ratio.

 Very good malleability.

Rubber  Cheap
 Very good to protect the product

4.2.3 Material Processing and Manufacturing


Material processing service aims to reduce to generate for waste as soon as possible. And the waste
can be recycled. The waste can’t be recycled is harmless for environment.

4.2.4 Packaging & Transport

The product needs packaging and transport. In distribution of the product is important to consider
that the number of steps from the manufacturing facilities to the customer should be reduced to a
minimum. The product is transported by truck or train, which produce global warming. Packaging is
one area where recyclable material such as cardboard boxes instead of plastic coatings should be
used to ensure a reduction in waste and a greener process of distribution.

4.2.5 Useful Life

Product life expectancy is about seven years depending on customer’s use. The materials and shape
determined the damage of product is harmless for customer. If the product is damaged, it has a
replace of component. But the core component is not replaced and the product is not reused. It
required buying a new product to use. In additional, an effort should be made to ensure that the
product is replaced so as to reduce the wastage of material.

4.2.6 Disposal
As the raw materials are selected and recyclable there is no problem of disposal because the raw
materials would be reused and recycled to ensure that there is almost no need for disposal.

4.2.7 Conclusion
 The materials of the product are almost recycling. It is harmless for environment.
 In the process of materials processing and manufacturing try to reduce waste.

31
  Packaging use recycling materials. Even though it can produce global warming in transport. The
transport should be planned to reduce the consumption of Fossil fuel.
 Useful life is important for customer. The product provides replacement of component.
 Disposal of product can recycle and reuse again.

5 THE CONVERGENCE PROCESS

5.1 PUGH DESIGN BOUNDARIES ACCESS

Optimising and choosing the right design for the product are being helped by Pugh’s design
boundaries. By considering normative criteria that will be used to eliminate or modify concepts; and
informative criteria to assist with the selection of the product, described in the table below. A
further assessment is carried out to identify if any criteria is not relevant to our design and/or
commercial venture.
No Design Boundary Convergence Criteria Use of Criteria Importance Formatted Table
Need to research prior to Embodiment of Product and after
1 Patents Detailed Design stages. Must differ from numerous popular Must High
designs
Product should not include any fragile, short life, corrosive
2 Shelf Life / Storage Yes High
materials or chemical products
Use high quality materials, robust and engineering design
3 Quality / Reliability practices relevant to the product or components to increase Yes Medium
reliability. Favoured robust designs
Favoured to have a compact packing that can facilitate
4 Packing Yes High
transportation
5 Competition Will required further investigation No Low
Should be design using more than 50% standard parts that
6 Maintenance Yes Yes
could be found in any warehouse in Australia
The components of the product should have low density
7 Weight Yes High
materials, avoid as possible ferrous materials

32
 The product should be attractive so retail business would
8 Market constraints promote it in their business, the price of the final product Yes High
should not exceed aud$250
9 Politics No apparent issues No Low
Low cost and efficient manufacturing processes must be
10 Manufacturing facility Must High
applicable to fabricate the components of the product
While using raw materials green design boundaries should be
11 Disposal considered. Favourable environmental friendly products with Yes Medium
materials that can disposed
12 Company constraints Requires further assessment No Medium
Ideally product should be small in size, separable and some
13 Shipping Yes Medium
parts foldable, favour compact products
Should have a size to fit in an average Australian homes and
14 Size space efficient, Ideal product should have less than 400mm Yes High
width, 250mm depth and 1500mm height
Favour products with minimum material, fabrication, assembly
15 Processes Yes High
and packing processes
Requires further research, however Must be functional as
16 Customer Must High
described in the opportunity statement.
17 Time Scale Favour product that can be retailed in a short term period. No Medium
Product should be affordable for the average Australian. With
18 Product cost No High
a targeted price as described in No. 8
Product must perform accordingly to problem statement,
19 Performance Must High
favored multi-functional and user-friendly concepts
20 Life in service Life of product should be minimum of 5 years. No Medium
Product must be able to be DIY installed in the majority of
21 Installations Must High
homes
22 Aesthetics Product should be integrated with the environment. Yes High
Standards / codes / Requires further investigation, Favor satisfy operation
23 No High
certifications products.
Favored automatic operation. Product must be easy to
24 Ergonomics Must High
operate
Need to consider Green Design Guidelines with low footprint.
25 Materials Low density, non-corrosive, slow oxidation, durable materials, Yes Medium
Favour products with recyclable and biodegradable materials.
26 Product life span Favored products with long lifespan. No Medium
27 Quantity Product must be able to be manufactured in high volume Must Medium
Minimal documents must be required. Product should include
28 Documentation Yes High
a user manual for easy installation
29 Legal Need to consider performance in different conditions No Low
Favour product that does not introduce new risks or hazardous
30 Safety Yes High
materials.
Favoured products that required minimal prototyping to
31 Testing Yes High
produce a final product
32 Environment Should be as greener as possible No High

From the previous table we began with an elimination round of the concepts that do not comply
with the normative criteria (“must”) as well as identifying opportunities for the development of new
hybrid concepts.

5.2 CONCEPT ELIMINATION ROUND

The following table shows the concepts that were eliminated during this phase of the convergence
process. After consideration and brainstorming ideas, new hybrid solutions were developed from
previous concepts from Figure 27 to Figure 29. These new ideas will be used during the controlled
convergence and the different rounds of elimination.
No. Design Boundary Convergence Criteria Use of Criteria Product Formatted Table
Need to research prior to Embodiment of Product and
1 Patents after Detailed Design stages. Must differ from Must 3, 12
numerous popular designs
Low cost and efficient manufacturing processes must
10 Manufacturing facility be applicable to fabricate the components of the Must 6, 8, 10, 17
product

33
 Requires further research, however Must be functional
16 Customer as described in the opportunity statement and Must 9, 11, 14, 15
according to pertinent boundaries
Product must perform accordingly to problem
19 Performance statement, favoured multi-functional and user-friendly Must 16
concepts
Product must be able to be DIY installed in the 7 (Magnetic Idea
21 Installations Must
majority of homes comes from this)
Favoured automatic operation. Product must be easy
24 Ergonomics Must, Yes
to operate and DIY
Product must be able to be manufactured in high
27 Quantity Must
volume

5.2.1 Hybrid Concept Solutions

 Medium- flexible  Twin Storage Hybrid Formatted Table
polypropylene storage temporary clipped to
with magnetic opening vertical shelves. Plastic
to contain two t-shirts, clip attached to the
hook attached to middle column by rivets, glue or
division to hang in the sawing.
wardrobe.

Figure 28 - Concept 19:

Figure 27 - Concept 18: Twin
Vertical Shelve Twin Storage.
Storage. Hybrid Solution from
Hybrid solutions from concept
concepts 3, 5, 12. Wenban S
18 and 1. Wenban S (2016
(2016 pers. comm., 9 April)
pers. comm., 9 April)

 Horizontal Shelving
storage where various
concepts 18 (or
simplified to single
storage) can be stored by
sliding them aided by
numerous plastic
divisions that roll in the
bar.

Figure 29 - Concept 20: Rolling

Shelving Storage. Hybrid Solution
from concept 18 and 19.
Wenban S (2016 pers. comm., 9
April)

5.3 CONTROLLED CONVERGENCE

The weak concept solutions were eliminated during the controlled convergence as described in
APENDIX A. However, the results obtained during the process were insufficient to determine the
final concept solution; as a result, it is worth to further analyse the concepts obtained in the 4th

34
round of elimination during a prototype stage as well as finding better concept solutions applying a
divergence process (not included).

5.3.1 Concept Elimination

Round 1 relative to concept 1 from the preliminary solution
 Low depth storage or
shelving with divisions that
can be anchored to the wall
where required.
 Conceived as a feature wall
shallow cabinet type its
weakest points are the size
and space inefficiencies.
 Containers attachable with
Formatted Table
others by electromagnetic
force, to insert in drawers
and easy handle
 Manufacturability could be
one of the weak points;
however, its principle was
Figure 31 – Concept 13: used to developed new
Segmentation - TRIZ concept solutions.

Figure 30 – Concept 2: Feature

Wall–Process Tree

 Retractable storage that can

be possitioned where
required, anchored to the
wall or in the floor. Contains
individual compartiments.
 This concept will be time-
consuming to develop better
Figure 32 – Concept 4: Retractable ideas.
Storage – Process Tree

Round 2 relative to concept 5

 Requires further investigation, however, Formatted Table
compared to other concept solutions the process
of manufacturing, assembly methods,
transportation and market boundaries were not
appropriate as it was conceived.

Figure 33 - Conceptual Preliminary Solution

Round 3 relative to concept 19

 Hard compartiment, to
Formatted Table
store individual t-shirts and
assists with the
compression of the t-shirt.
 The concept by itself could
be developed to improve its
performance. It was used as
a base to further develop
new hybrid solutions.

35
 Figure 34 – Concept 5: Individual Hard
Container – Process Tree

Round 4 relative to concept 18

 Two Storage Hybrid temporary
Formatted Table
clipped to a vertical shelve.
 The elimination of this product
was used to test applicability
of Pugh’s method. However, it
will require further
investigation that does not
interfere with any intellectual
property.

Figure 35 - Concept 19: Vertical

Shelve Twin Storage. Hybrid
solutions from concept 18 and 1.
Wenban S (2016 pers. comm., 9
April)

Therefore, the selected concept idea is 19: Hybrid Rolling Shelving and will be described during the
next chapter.

5.4 SUMMARY OF CONCEPT SOLUTIONS

Following, the summary of the concept solutions.

36
5.4.1 Preliminary Solution
Elimination round 2 CC. Requires
Formatted Table
further investigations, however,
compared to other concept
solutions the process of
manufacturing, assembly methods,
transportation and market
boundaries were not appropriate as
it was conceived.
Figure 36 – Concept 1: Conceptual
Preliminary Solution

5.4.2 Process Tree

 Low depth storage or  Flexible and resistant Formatted Table

shelving with divisions compartment that can hold
that can be anchored to the shape of the folded t-
the wall where required. shirt when stored.

Elimination in round 3 CC The Elimination by informative

concept by itself could be criteria, patenting, did not differ
developed to improve its from diverse products on
performance. It was used as a internet.
base to further develop new
hybrid solutions.

Figure 37 – Concept 2: Feature Wall

Figure 38 – Concept 3: Flexible Holder

 Retractable storage that  Hard compartiment, to

can be possitioned where store individual t-shirts
required, anchored to and assists with the
the wall or in the floor. compression of the t-shirt.
Contains individual
compartiments.

Elimination round 3 CC. The

concept by itself could be
Elimination in round 1 CC, This developed to improve its
concept will be time- performance. It was used as a
consuming to develop better base to further develop new
ideas. hybrid solutions.

Figure 39 – Concept 4: Retractable

Storage

Figure 40 – Concept 5: Individual Hard

Container

37
5.4.3 Design Tree
Figure 41 – Concept 6: Narrow Drawers for
one Pile
Figure 43 – Concept 8: Side Plates Height
Reduced
Figure 45 – Concept 10: Container Sleeve.
Wenban S (2016 pers. comm., 2 April)
 Narrow drawers to fit
only one row of t-shirts
Elimination by informative
criteria, and patenting.
 Reduced drawer side wall
height to facilitate
access to items in the
bottom
Elimination by informative
criteria, manufacturability,
requires further
investigation to improve
concept.
 Sliding and flexible sleeve
that can store individual
t-shirts and is stored
folded in the drawer.
Elimination by informative
criteria, manufacturability,
requires further
investigation to improve
concept.
38
Figure 42 – Concept 7: Sliding Base
Wenban S (2016 pers. comm., 2 April)
Figure 44 – Concept 9: Rotational
Drawer Insert
Figure 46 – Concept 11: Retractable
Compartment
 Sliding box inside the
Formatted Table
compartiment with
magnetic latches to
access from the front.
Elimination by informative
criteria installation. Difficult to
install to new users and
comercialise. The magnetic
holders were obtained from
this idea
 Additional rotational
compartiment.
Elimination by informative
criteria customer.
 Retractable rear
compartiment aided with
a gas strut to enhace
pulling force
Elimination by informative
criteria customer.
5.4.4 Brainstorming and Reverse Brainstorming
 Cardboard device used to
Formatted Table
assist the folding of t-shirts
and remain closed with
magnets attached.
Contains holes in the sides
to insert hooks that in the
other end provides a
hanger shape to store in
the wardrobe.

Elimination by informative
criteria, Patenting, did not differ
from diverse products on
internet, however, further
investigation was performed to
develop hybrid solutions.

Figure 47 – Concept 12: T-shirt Library

Wenban S (2016 pers. comm., 2 April)

5.4.5 TRIZ
 Containers attachable  Cabinet with divisions and
Formatted Table
with others by sliding beds that can store
electromagnetic force, one t-shirt
to insert in drawers and
easy to handle

Elimination by informative
criteria customer.
Elimination round 1 CC.
Manufacturability is the weak
point; however, its principle
was used to developed new
concept solutions.

Figure 48 – Concept 13: Segmentation

Figure 49 – Concept 14: Taking out

39
  The cube unfold is made  Four-bar or similar
of 6 faces, each face mechanism attached to
contains storage the drawer that extracts
divisions. the clothes from the
drawer as it is opened

Elimination by informative
Figure 50 – Concept 15: Nested Dolls criteria customer, requires Elimination by informative
further investigation to criteria performance.
improve functionality

Figure 51 – Concept 16:

Equipotentiality

 Used as example of TRIZ

a division of one drawer
into multiply drawers.
Not applicable due to
analysis obtained during
the development of
preliminary concept.

Elimination by informative
criteria, manufacturability,
requires further investigation
to improve concept.

Figure 52 – Concept 17: Another

Dimension

5.4.6 Hybrid Concept Solutions Convergence Process

 Medium- flexible  Two Storage Hybrid
Formatted Table
polypropylene storage temporary clipped to a
with magnetic opening to vertical shelve. Plastic
contain two t-shirts, hook clip attached to the
attached to middle column by rivets, glue or
division to hang in the sawing.
wardrobe.

Elimination round 4 CC. The

Final concept solution elimination of this product
was used to test applicability
of Pugh’s method. However, it
will require further
Figure 53 - Concept 18: Twin Storage. investigation that does not
Hybrid Solution from concepts 3, 5, 12. interfere with any intellectual
Wenban S (2016 pers. comm., 9 April) Figure 54 - Concept 19: Vertical property.
Shelve Twin Storage. Hybrid solutions
from concept 18 and 1. Wenban S
(2016 pers. comm., 9 April)

40
  Horizontal Shelving
storage where various
concepts 18 (or simplified
to single storage) can be
stored by sliding them
aided by numerous plastic
divisions that rolls in the
bar.

Final Concept Solution

Figure 55 - Concept 20: Rolling Shelving
Storage. Hybrid Solution from concept 18
and 19. Wenban S (2016 pers. comm., 9
April)

6 CONCEPTUAL EMBODIMENT OF THE SELECTED PRODUCT

From the opportunity statement of this document:

“We aim to improve the organisation at home and make life easier for everyone in Australia. By
developing a compact and space efficient device that can be installed in any home or stored in a wide
range of drawers found in wardrobes. This device will be used to store folded t-shirts that display the
colour or image when accessing them, at the same time neatly maintaining the shirts that are not
required. The expected life would be similar to a drawer or wardrobe at home in normal use
according to the design specifications. The user should be able to store, access and select the desired
t-shirt in a friendly way that does not require extra force or effort for this purpose. The intended
market for this product is home owners that find in their homes the necessity to improve their
storage systems due to small areas to place conventional storage systems”.

We have developed the product exclusive for T-shirts that is:

 Easy to Install
 Easy to Use
 Space Efficient
 Accessible
 User Friendly
 Will assist any home where organisation is a problem, to keep a tidy place.

The ITVEO is a compartment of high quality polypropylene material that will use the electromagnetic
forces of 2 powerful Neodymium (0.4kg each) magnets to keep folded and in place any T-shirt size up
to XL.

The compartments can be opened to hold the t-shirts, then, are tight closed by magnetic force. Once
the t-shirt is inside the compartments are slid and supported over an easy to install Stainless Steel 304

41
shelve with independent rollers made of HDPE (High Density Polyethylene) with flanges in both sides
that will assist the user to position their favourite T-shirt.

Figure 56– ITVEO First Design

Formatted Table

42
 Formatted Table

A further development of the product was made to improve a blending with the environment as
shown in figures above. Including a folding cover made of MDF that can rotate through a pivot point
in the front end of the shelf support, attached permanently with a set of six screws and covered with
a thin film of adhesive stainless steel foil.

7 INTELLECTUAL PROPERTY
According to Australian government an Intellectual property (IP) is the property of your mind or
proprietary knowledge(Understanding IP: IP Australia 2011). It is both a productive and creative
new idea that a person develops. Intellectual property can be in various forms namely:

1. copyright
2. trademarks,
3. registered design,
4. trade secrets
5. patents

43
In Australia, there are different IP rights; some require some formal application and a further
examination before one can claim the ownership while others do not require any. In Australia,
patents, trademarks, designs and plant breeder’s rights are the ones administered by IP Australia
while the department of Communication and the Arts administers the Copyright and circuit layout
rights.

An understanding of these IP rights is crucial as it from the four main IP rights differences that ITVEO
product idea can be suitably categorized to the correct IP Right. This will eventually offer an
opportunity to commercialise the product idea without any IP infringement.

For the ITVEO product idea, it will first undergo the filing process in Australia reason being it is where
the product design and manufacture will be located. For IP protection of the ITVEO, it will require a
trademark, registered design and standard patent.

7.1 TRADE MARK

The ITVEO® name is the desired brand name of the product design. It is important with the
assistance of trade mark attorney, to have it registered. The attorney will be in-charge of the
process since the person will be able to correctly determine the right class for the trade mark to be
registered.

This brand name will be able to differentiate the product from any other competitor. It will be a
distinguishing mark. A search was done on the brand ant it was found to match no other product
with the name and therefore a unique name only desirable for the product design.

In Australia, trademarks are searched using the Australian Trade Mark On-line Search System
(ATMOSS)(ATMOSS: IP Australia 2011). A search was carried out on the desired ITVEO brand name
and revealed zero results. Again, this means the trademark T-Shirt ate is a novel brand name for the
product.

7.2 REGISTERED DESIGN

The ITVEO product does have a unique design and from discussion deserves to be a registered
design because of its shape and confirmation as illustrated in appendix B of this innovation and
design report.

In Australia, under the registered design rights, it is the visual appearance that is protected and not
how a design works. This design right is recognized under the Designs Act 2003 according to IP
Australia.

The search for design right is a complex, costly and time consuming. The need for these services
from a professional body that specially deals with Registration of Design rights will be required. The
use of IP professionals, is advantageous as they are able to interpret the complex search results
effectively from the database

In Australia, AU Designs Data Searching portal (ADDS) enables one to carry both complex and a
simple search. A simple search revealed nothing close resembling the ITVEO which significantly
means it a new idea or novel idea(AU Designs Data Searching: IP Australia 2016).

44
7.3 PATENT
There are different patent forms but in depending on the geographical location but since the ITVEO
product will be based in Australia, then it will be under the Australian statutory laws on patents. In
Australia there is the standard patent and innovation patent.

The standard patent greatly appeals to the ITVEO product idea as it offers the longest protection
which is actually valid for twenty years as opposed to innovation patent with a life span protection
of eight years. This will be advantageous as owners of the patent over competitors as it will give the
rights to the invention and financially benefit from it. As inventors of the ITVEO it will also offer legal
rights to defend the product from individuals who would infringe.

The filing process starts by applying in Australia and a possible review to extend to overseas
depending on whether the ITVEO does well only in Australia or it has a potential to grow to
international market prompting need to file for an international patent.

For purposes of the right choice of patent, it proves important again the need of a patent attorney
who is an expert on it. This way as inventors, the economic success implications of the choice of
patent will be understood and correctly adopting the right one from the patent attorney’s advice.

7.3.1 Prior Art

This will involve checking all sources of information that is available to public whether there anything
that can invalidate a patent. This should be done prior to filing for any patent application.

According to intellectual property website in Australia, Prior art covers a range of documents
including prior patents, publications, textbooks, newspapers, lectures, or exhibitions in any part of
the world(Prior art: IP Australia 2015).

It is highly recommended that individuals wanting to undertake any patent application to seek
professional services of patent attorneys. Reason being that the database results can be
overwhelming and difficult for anyone to interpret it alone and therefore the need for patent
attorneys’. They will conduct a professional patent search for the inventors in this case for the
ITVEO. This is advisable before making any formal patent application for the ITVEO.

7.3.2 AUSPAT
This is a patent database provided by IP Australia(AusPat: IP Australia 2011). It is a free site that can
be used by anyone to find out if a patent has been filed in Australia on their product idea. AusPat has
a database going back to 1904 for only Australian inventions.

A search was undertaken in AusPat on any form of a ITVEO, a product to be used to organise t-shirts,
and had zero results. This means that is no similar or even identical product in Australia that is close
to a ITVEO product. This finding makes the ITVEO unique in the Australian market upon introduction.

As a final recommendation from the study and search of the different IP types, the ITVEO will need
the keen eyes and professional skills of attorneys from IP firms, like IP in Australia. This will highly
reduce any risk of having the ITVEO infringing any existing patent and therefore avoiding refusal of
application. The IP firm can do a proper or thorough search and correctly file patent on our behalf in
Australia as the ITVEO inventors.

45
8 MARKET ANALYSIS

8.1 PRELIMINARY MARKET ANALYSIS

In terms to obtain a wide understanding and comprehension of the market and prepare the plan and
strategies that will guarantee the success of our product during the market lifecycle, we have
prepared the following analysis that provides the results obtained during our research, regarding the
market current behaviour divided in sector, size, competitors, lifecycle and price. Finally concluding
at the end of this chapter with the strategies required for ITVEO to enter the market.

8.1.1 Market Sector

As starting point to define our market sector we based our assumptions in the opportunity and
problem statement of this document, as well as following the research to define the target market
obtained from (Leboff Grant) who describes six steps to define the target market which for this part
we will use first three of them: a. Obtain an understanding of the problem that the product will

46
solve, b. making a list of the possible customers that suffer the problem and group them accordingly,
c. understanding who will gain from the value of the product, (if the cost of not sorting out the
problem is greater than the cost of dealing with it, the product evokes interest).

Further findings as stated by (MaRS 2009) the definition of the target customer is followed by a
refining of the market size by assuming a penetration rate for the product. Defining a high
penetration rate if the product is mission-critical or mandatory through regulations; and a low
penetration rate for products with specialised purpose.

a. What is the problem that our product will solve?

o From our opportunity and problem statement we found that the problem is: there
are not space efficient storage systems that can help us to maintain organise our
clothes (in this case the t-shirts) and facilitate to access them when needed.

b. Who suffers these problems?

o People living in small places that need space-efficient storage systems.

Possible Groups:
o Small Places houses or flats with up to three bedrooms.
o Homeowners (the product would require some home modifications).

c. Who will gain from having the problem solved?

o All the people that wants an organised place and have little time to store items in a
drawer or conventional storing places.

From the previous analysis, we have concluded that we will perform our market research home
owners (wall modifications will be performed during the installation of our product) up to two storey
duelling with maximum tree bedrooms. Including: Separate houses, townhouses, flats, unit or
apartments.

8.1.2 Market Size

Based in our market sector defined previously we have obtained the following information from the
Australian Bureau of Statistics:

(Australian Bureau of Statistics. 2011b)

Dwelling Structure None (includes One bedroom Two bedrooms Tree Formatted Table
bedsitters) Bedrooms
Total Private Dwellings
Semi-detached, row or terrace house, townhouse etc. total
One storey 2349 39264 203426 203426
Two storey 1185 13368 82833 165363
Flat, unit or apartment total
In a one or two storey block 7547 103907 286195 87906
In a three storey block 4334 46554 163821 31345
In a four or more storey block 8908 66002 150790 46948
Attached to a house 354 3382 2508 1603
Total 24677 272477 889573 536591
Grand Total 1,723,318
Total Private Dwellings 7,760,322

47
From the previous analysis 22.23% represents the number of houses where we will target our
market 1’723.318 dwellings.

The number of people that owns the houses, from (Australian Bureau of Statistics. 2011a) we found
that private dwellings owners outright and with a mortgage are 5,197,582 people, obtaining a
market population of 1’155.421 (22.23% x 5,197,582). This analysis was obtained from the ABS from
the census 2011 that is released every 5 years, by 2017 from the new census release we will expect a
higher number proportionally to the demographic increase of 1.8%/year.

Total Market Size: 1’155.423

The penetration rate, according to (Statista.com 2016), the penetration rate in Australia for e-
commerce in furniture and homeware is 16.10% by 2016.

According to this the refine market size will be 186.000 products.

8.1.3 Market Competition

Our market competition is defined according to the following criteria:
 Near / Direct competition: Storage systems with dimensions ranging from W: 50 – 800cm D:
25 – 40cm and any height. With sales points in / shipping Australia wide, addressing an
opportunity similar to ITEVEO, use efficient of space and easy access to items to put them in
place or to retrieve.
 Indirect Competition: Similar products with a closer relation to the opportunity that aim with
a low budget solution.

8.1.3.1 Direct competition:

As a direct competition product the following list are products found on internet and sold in
Australia that are / could address the same opportunity.
Brand: IKEA Formatted Table
Reference: HJÄLMAREN Wall shelf in Figure 57 - Wall Shelf(IKEA 2015a)
Price: AUD$99
Size: W:50cm x D:35cm x H:190cm
Pros: Easy to assembly, access to market, recognized brand and affordable.
Cons: Clothes can fall behind, organised in a vertical pile one over another, when
accessing them or store new ones can involve other clothes not needed.

Figure 57 - Wall Shelf

Brand: IKEA
Reference: STOLMENT Wall shelfFigure 58 - Wall Shelf(IKEA 2015b)
Price: AUD$435
Size: W:105cm x D:35cm x H:210- 330cm
Pros: Access to market, recognized brand.
Cons: Expensive, clothes can fall behind, organised in a vertical pile one over
another, requires high ceilings, not aesthetic, when accessing them or store new
ones can involve other clothes not needed.

Figure 58 - Wall Shelf

48
 Brand: Super A-Mart BBQSAM
Market Share: 15%
Reference: Spacesaver in Figure 59 - Wired Baskets Cabinet(A-Mart 2015)
Price: AUD$279
Size: W:50.2cm x D:44.2cm x H:190.5cm
Pros: Strong Market Presence, versatile, easy to assembly, delivery across Australia,
online-shopping.
Cons: clothes organised in a vertical pile one over another, when accessing them or
store new ones can involve other clothes not needed, not space efficient, not
aesthetic, medium-high price.

Figure 59 - Wired Baskets Cabinet

Figure 60 - Narrow Shelf Storage
Brand: Whitmor. High positioned USA company over 70 years delivering products to
organise homes as stated in their website (Whitmor 2016), offering their products
around Australia through retail and online markets such as Kmart, Target, BigW,
ebay, amazon, house.com.au.
Reference: 6 Shelf Closet System in Figure 60 - Narrow Shelf
Storage(Whitmor)Figure 61 - Divided Clothes Container
Price: AUD$107.95
Size: H:154.9cm x W:64.7cm x D:25cm
Pros: Compact, space efficient, easy to access clothes independently, highly
affordable.
Cons: clothes organised in a vertical pile one over another, when accessing them or
store new ones can involve other clothes not needed.

8.1.3.2 Indirect Competition

The following examples were found on internet that can compete with our product attracting
customers solving the same problem and with a low budget.

Brand: Unknown Source from Hong Kong manufacturer. Formatted Table

Figure 61 - Divided Clothes
Container
Reference: Bamboo Charcoal Foldable Clothes Bag Window Storage Organizer Box
in Figure 61 - Divided Clothes Container(Unknown 2015)
Price: AUD$13 + shipping
Size: H:58cm x W:36cm x D:30cm
Pros: Compact, easy to access clothes independently, highly affordable and can be
stored in any shelve unit or box, portable.
Cons: The unknown source can reduce the customer confidence with the quality of
the product or warranties, storing clothes could be highly inefficient when pushing
clothes inside, due to the flexibility of the structure and material, shipping can take
up to three months.

8.1.3.3 Competitors and Retail Research

IKEA Australia: According to (Wikipedia_Contributors 2016) IKEA is a group that designs and sells
ready to install furniture, founded in Sweden in 1943 recognised by the modern architectural
designs and eco-friendly simplicity. IKEA website contains about 12.000 products the closest
representation of their range of products with a world market sale from 2013 to 2014 of EUR$28.7
billion (IKEA 2015c) .

Its presence in Australia starts from 1999 by 2014 has obtained sales AUD$733 Million planning to
obtain by 2020 AU$1.8 billion, taking market share from competitors such as Bunnings, Masters,
Havey Norman by increasing their number of outlets from 8 to 22 (Mitchell 2015).

Super A-Mart BBQSAM: Offering a wide range of products and brands for furniture, bedding and
bbq, this retail business has over 70 years in Australia with an approximately 15% market share
operating in a AUD$10b market. Statistics obtained from (Ironbridge 2012)

49
Whitmor Manufacturing CO, Australia: Our research of the market led us to this brand from United
States whose presence in Australian markets is through online as well, big retail business such as
Target and Kmart (United States Retail Business). Over 70 years in the US and international market
its mission is focused on creating innovative and high quality designs that can aid customers in home
organisation as stated in their website (Whitmor 2016).

Our competition research was based not only in the product developed in this document but also,
with the possibility to develop a variety of innovative products that state the same opportunity in a
growing market.

8.1.4 Market Lifecycle

The product design introduction into the market will largely target the Australian market. This is the
primary market with a future potential to break into the overseas market. This will be possible after
progressively assessing the growth rate of the sales of the product, market reviews from online
buyers especially though market demands from both local consumers and international consumers.

The lifecycle of a product will be greatly influenced by the market size including its competitors. That
from previous findings are sharing a market around AUD$10b in Australia. This is important in
understanding the potential size of the consumers who would prefer to use our product and with
also, a clear understanding, of who potential competitors in the market that would influence the
lifecycle of our product.

The general trend of a market lifecycle runs from development, introduction, growth, maturity and
finally the decline phase(NetMBA 2010)

These phases can be shown in the figure below.

50
 Figure 62 - Product Life Cycle

The graph is an indication of an introduction of a product in a market lifecycle and how it relates to
sales.

After the development of the product stage the group will define through the SWOT analysis
strategies for the following stages of the market. However, further research of the market has lead
us to obtain the following valuable information:

 (FIAA 2014)reports from the latest Australian census, the furnishing industry in Australia
generates an annual revenue of AUD$5.4b
 (IBISWorld 2015) reports the annual sells of online furniture are forecasted to growth by
20.1% in 2014-2015 to reach AUD$360.3 million and annualised 19.7% over the next five
years.

Concluding from our findings shows that the market is in a growing stage specially when focused in
online promotion and sales.

The figure below shows the relationship between the market lifecycle and BCG

51
 Figure 63 BCG Positions in Market Lifecycle

In order to greatly understand the market phase of our product a simple tool called the BCG Matrix
is used. This was developed in 1970 by the Boston Consulting Group(Martin Reeves 2014).

The figure below shows a typical BCG matrix.

52
 Figure 64 BCG Matrix

The product, upon introduction into the market intended to be promoted through internet and
social networking during a period of one year 2016-2017, it would be in the introductory phase with
a quick possibility to move up to the growth phase. As a product which has competitors in a market,
it will enter as a ‘Question Mark ‘increasing the investment in improvement and marketing. At this
matrix cell, ITVEO will have a low market share despite a growing market.

Therefore, in the market lifecycle, the product will have to grow from the introduction phase up to
growth phase. At this particular phase, Growth Phase, the sales would increase with time. This will
be possible when proper marketing strategies are strategically used like adopting a persuasive
advertising to increase awareness of the product which would in turn result in increased sales. This is
only possible with increasing the production of the product as well.

As a result of using the growth strategy of the product like more investment or cash injection, proper
marketing and increased production should move the product to a growth phase of the cycle which
corresponds to the ‘Star’ matrix cell of the BCG. At this phase, ITVEO will experience a much higher
market share including an increased market growth.

Starting the fourth year of the product it is likely to start a maturity level, where sales could present
stagnation and presenting a decrease in sales with the highest share market obtained from the
product. At this point the decision to start a new product or improve the current one will be taken
over the results obtained from the product revenue during the third and fourth year.

8.1.5 Market Price

From the previous analysis as well an intense research of similar products we found that the range of
prices from this kind of products that state the same opportunity are around AUD$60-120. However,
a perception of this specific product that only provides the organisation of 16 items could only be
introduced with a price around AUD$120 with proper marketing strategies that should be analysed
further and will require expensive marketing strategies and advertising as mentioned during the
market lifecycle.

Concluding from the previous information that the product price should range from AUD$85 - $120
depending of the profit-cost ratio obtained during the commercial feasibility and the market entry
strategies.

53
8.2 SWOT ANALYSIS
Strengths
Internal Manufacturing, materials and design
Know-How and over 10 years’
experience
Online Marketing and Web
Development Know-How and over 10
years’ experience
Prototyping experience
Knowledge and experience in latest
technologies for conversion of raw
materials into products
Over 6 years’ experience starting up
business
Marketing and commercial specialist
network that can assist to the
promotion of the product with a
minimum capital
Networking in less expensive overseas
manufacturing facilities
Opportunities
External Market growth expected by 19.1% over
the next five years
Median home sizes reduced due to a
high housing demand in Australia
Competitors such as IKEA, in terms of
offering a high range of products are
reducing their quality and aesthetics
Assistance and networking for
entrepreneurs facilitated by new
government policies
Weakness
Lack of capital that will come from bank
loans or investors
We do not have a stablished brand or
reputation in the market
We do not have any membership to
Australian Associations that help
promote our products
Home manufacturing facilities limited in
working area and equipment
Lack of knowledge in contracts
negotiation and its professional
development by solicitors
Threats
Continuous innovation of home
furnishing and appliances with
competitors with strong brand name
and market share
Without the right patenting of products
China manufacturers can take
advantage and reproduce our product
in short term and with a low price
Saturated market that requires strong
innovative capabilities
Strategies Formatted Table
 Creating first prototypes to promote through internet and social networks assisted with
a home video that will attract the niche market, with leveraging the strategy from
investors.
 Finding alliances with other companies that state the same opportunity to promote our
online presence when offering their products and offering a wide range of products, as
well, leveraging the marketing strategies from the profits and development of other
products.
 Through the establishment of a new business, using the government assistance to
obtain better networking, contracting knowledge or advice, marketing and
management advices to help growth the business.
 Join associations such as the Australian Furnishing Association to increase networking
as well improve the brand recognition, develop partnership and obtain a continuous
market insight
 Assure the highest quality of products as well the aesthetics and materials by applying
continuous improvement strategies and ISO QA/QC management systems, including a
well detail product fabrication specification that can be reproduced in any part of the
world maintaining the quality standards.
 Development of internal policies of opened communication between all levels of the
company, allowing us to develop a culture of a collaborative environment. Including
R&D facilities where everyone can participate in a new product
development/improvement or obtaining external information from other competitors
through word-mouth.
 Strong registering, patenting and/or IP procedures through the whole product life cycle
to avoid plagiarism or threats of external competitors. Applying well secured
networking systems to minimise the information leaks.
 Create policies towards the continuous learning and implementation of newest
manufacturing and materials technology.
 Utilise the profits of the company obtained during the first years to increase the brand
name and obtain a higher market share.
54
8.3 CONCLUSIONS MARKET ANALYSIS

Market Sector  Products offered to small/medium dwellings. Formatted Table

 Sector Size/product: 186000 products

Competitors  IKEA
 Super A-Mart
 Whitmor (USA)

Market Life-Cycle  Development-Introduction Phase: We find our product in the

basic stages of the product life-cycle, where will be necessary
apply strategies a developed during the SWOT analysis to obtain
a higher market share.
 Through different findings the market share for online-sales is
around AUD$360Million and total sales AUD$5.4b, the market
share will be measured continuously during the development of
the venture.

Market Price:  Established Value: AUD$95, prices over AUD$120 will be

considered upon further marketing strategies.

Strategic Plan:  SWOT Analysis

55
9 MARKET ENTRY
Using a defined set of tactical Marketing tools to effectively market the product or service and get
your target consumers is marketing mix. There are four critical elements in marketing your product
or services. They are the four P’s of marketing.

 Product: The right product to satisfy the needs of your target customer
 Price: The right price is offered for the customers for the product
 Place: The right product available in the right place to be bought by the customers.
 Promotion: Promoting your product to let the customers know about the availability of the
product, its place and its price.

The four elements should be viewed as one unit and structured to support each other in order to
support marketing, sales and promotion of the product. Therefore, the objective of our marketing
mix is to have a positive influence on the demand of our product. Thanks to our marketing mix our
company can differentiate itself from competitors and we can establish a strong position in our
target market.

These four P’s are elaborated below and we have explained how our product has been designed and
priced using the tools of 4 P’s

Figure 65 - 4 P's

56
9.1 PRODUCT
A Product is an article which a manufacturer prepares a product desires to sell in an open market
which is an article. A fine. Managing product component involves product comes through a series of
processes which includes a lot of planning and development. Product The product manufactured for
market should be made and developed according toas per the needs and expectations of the
consumers. There are many elements associated with the ITVEO has been specially designed keeping
in mindthat impact the customers’customer’s choice and needs. The product haswill have high
quality and aimed at wide range of household consumers from average to high end.

ITVEO Competitors Product Formatted Table

Product Variety Easy to install Fixed and cannot be moved
Stylish appearance to attract customers from Same shape and appearance in every
Product Appearance
different backgrounds household.
Product Quality High Medium
Product Features Portable, Lightweight and comes in multicolour Same colour and heavy
Put you t-shirts in an organized manner no need to
Have to waste time and need to be ironed
Product Functionality rush. Quick and easy to exchange. Does not get
again. Cannot get it quickly.
unironed. Pick by your choice
Services Customer Service: Telephone, Email No
Brand name ITVEO Drawer
Instruction manual included with a corrugated paper
Packaging Corrugated paper box
box.
Warranties 2 years 1 year

We are targeting our product to last for 3-5 years of lifecycle. The product also comes with one-year
replacement warranty and one-year service warranty; the service warranty can be extended to 2
years by paying extra. For service warranty a team will be sent to customer’s home. An installation
manual with the help of diagrams will be shown how to install every part and operate the product.
Furthermore, a toll free number will be provided to every customer for queries and questions and
clarify further doubts. The customer can choose their desired colour and pattern ITVEO from the
variety they are given.

Further Assessment of Product:

What features are theconsidered basic features which
are considered according to theby our customers
and(ones that must have beenbe offered in the
product? )?
What features are the needs of the customers which
are not catered in the missing from the existing
products?product in the market? How can weour
product address these problemsthis gap?
What are key features/benefits that we are providing
to our customers especially as compared to what our
competitors are supplying?
How our product can give us a sustainable competitive
advantage in the marketplace?
Formatted Table
The good function of organising your clothes, operates easily, safety,
portable
Competitors product is fixed, immovable, disorganised and difficulty of
usage
Have multiple functions of arranging and organizing your clothes (t-shirts),
see through material for easy access and choice made easy. Can be placed
anywhere because lightweight, compact design and portable.
No high end product exists in the market place now.

9.2 PLACE
ThePlace refers to the distribution channels through which ourused to get your product will be
distributed to theyour customers is called. It not only includes where the place.The product will beis
placed in certain amounts and certain places keeping in view our target customers and, all those
activities which are requiredperformed by the company to ensure the availability of the product to
the targeted customers. Availability of the product at the right place at the right time and in the right

57
quantity is crucial in placement decisions. We can either sell theBusinesses that create or assemble a
product will have two options selling directly to the customersconsumers or we can chooseselling to
sell it though the vendors. We have both options in minda vendor. The factors that describes placing
are

 Placement
 Logistics
 Inventory
 Distribution channel
 Market Coverage
 Reseller values
 Intensive Distribution
 Selective Distribution
 Exclusive Distribution

Our Product

Placing the distribution point is very essential in a business in order to establish strong distribution
network. We are not placing an external warehouse, so the finished product will be stored in the
factory storage unit for distribution. We will setup a factory in Wollongong which will provide us
with a good distribution network all over Australia. The product will be sold online and through
telemarketing agencies on the TV and the delivery will be made free of cost. We will setup a
showroom and headquarter in Sydney and further showrooms and service points will be opened
depending upon the customer demand in that particular area for direct sales. As the customer
demand increases our product will be supplied through selective and exclusive retailers, for example
Bunnings Stores. Training on installation will be given to staff members in the outlets. After some
time, sales person will be recruited for door to door sales.
ITVEO Competitors Product Formatted Table
Direct Sales Through Stores and outlets Stores and outlets
Reseller Sales Retailers like Bunnings Not known
Other Sales Telemarketing, online Online
Inventory Medium to High Inventory High inventory
Market Coverage Selective distribution Intensive distribution
Lightweight and easy to transport through trucks and
Transportation Transported through trucks
planes
Choose to stay in Wollongong.
Logistics Close to suppliers Not known
Good distribution network throughout Australia

Further Assessment for Place

1. Either we should go for directWhat is the best way
to sell our product? Direct selling or through?
Through a reseller? What would be the best option?
Will this provide us with abe competitive advantage
or disadvantage?
2. How will the placing and your plan of coverage and
other place decisions be taken comparedcompare to
ourthose of your competitors? Will this provide us
with a competitive advantage or disadvantage?
It is best to sell our product through a reseller like Bunnings because Formatted Table
customers can get it when they are buying other household items like
bedding, flooring, cupboards and other furniture items. We can also sell it
through as a supplementary method which can increase sales volume.
It will be competitive advantage to get more market sales.
Competitors just sell their products through stores and outlets. We can sell it
through some popular retailers meanwhile we can open an online shop to sell
it.
When it becomes famous we can sell it through markets.

58
9.3 PROMOTION
Advertising Promotion refers to the advertising and selling of marketing to increase the volume of
sales is called promotion. The marketing promotional. Promotional activities are necessary for bigger
companies. Theselarge scale marketing. Such activities establish a bond with the consumers and are
are varied in nature. and are useful for establishing reasonably good rapport with the customers.
Brand names are made popular through advertising. TheAdvertising methods of advertising are used
to determine how thetarget customers get to know about the product and usually create a word of
mouth about the product which includes radio, television, word of mouth, electronic, print, generic
and sales people. In addition to advertising and personal selling a manufacturer has to use other
sales promotion techniques at the consumer level and at the dealer level. The techniques at
consumer level include displays, exhibitions, discount coupons, small gifts and free samples,
attractive container and consumer contests. Consumer psychology is favourable for extensive use of
such sales promotion techniques. After sales-services are also useful for promoting sales of double
goods. The variables of sales promotion are

 Advertising
 Media type
 Budget
 Sales Promotion
 Direct Marketing
 Personal Selling

ITVEO Competitors Product Formatted Table

Radio Later Stage No
Television Yes, telemarketing No
Posters and brochures, newspaper
Print No
ads (later stage)
Online website, Google
Advertising Electronic Online Website
advertisement
Word of Mouth Yes, but not controllable No
Generic Not considered No
Public Relations Not considered No
Simple training to staff to be able
Personal Selling Yes
to demonstrate products
May have discount when buying in
Sales Promotion No
the bulk

Further Assessment for Promotion:

Which promotional/marketing activities should be Sellers in outlets and retail shops to recommend our product combining with Formatted Table
moreWhat promotion efforts are most effective for the website advertisement and poster makes our product present to target
ouryour target market? customers better.
How will our advertising techniques and strategies
wouldcan your promotion strategy give us a
It will only focus on target customers and have an effective advertising result.
competitiveyou an advantage in the
marketmarketplace?

59
9.4 PRICE

Estimating a market of 5 years/product

1 Year: Introduction Exclusive product that can be sold as “custom” design in AUD$120 Formatted Table
during the first year of introduction.

2-3 Year(s): Growth
During the growth period the price to public will be of AUD$95 during
the second year of its life, that will be affected by the new fashion
tendencies and overseas competitors during the following years. For
this purposes the price will be introduced with a physiological price of
$89.9 during the third year.

4-5 Year: Maturity During the maturity we will set a competitor price around AUD$80
only if the profit margin is above 25%

10 COMMERCIAL FEASIBILITY

10.1 VENTURE REVENUE

Based on the price strategies and the market size of 186.000 products, obtained in the previous
chapter the revenue of the product during the life-cycle according to a sales strategy of a 50%
growth/year during the first three years and steady behaviour during the maturity is described as
follows.

 1 Year Introduction: 15.500 products

 2 Year Growth: 31.000
 3-year Growth: 46.500
 4 Year Maturity: 46.500
 5-year Maturity: 46.500

Including a rejection rate of 5% the total revenue expected is:

Years Products Sold 5% Rejection Unit Price Total Revenue Total Products 186000 Formatted Table
0 Year 0 0 $0.00 $0.00 Yearly Mean $2,674,894.42
1 Year 15500 14725 $120.00 $1,767,000.00 Standard Deviation $1,556,575.77
2 Year 31000 29450 $95.00 $2,797,750.00
3 Year 46500 44175 $89.99 $3,975,308.25
4 Year 46500 44175 $89.99 $3,975,308.25
5 Year 46500 44175 $80.00 $3,534,000.00
Totals 186000 176700 $16,049,366.50

60
 Sales
50
Thousands

40

30

20

10

0
0 Year 1 Year 2 Year 3 Year 4 Year 5 Year

Sales
50
Thousands

40

30

20

10

0
0 Year 1 Year 2 Year 3 Year 4 Year 5 Year

Figure 66 - Sales Strategy Product Life-Cycle

61
10.2 COSTS ANALYSIS

10.2.1 Organisational Structure

The following structure was estimated as a minimum personnel to drive the company towards the
achievement of the production and market goals.
General
Manager
(80k/year)

IT Infrastructure
Adm officer Marketing and Supervisor
Manager
(55k/year) Sales (75k/year) (60k/year)
(75k/year)

3 Labourers Graphic
(45k/year) (1st Designer
year) (45k/year)

5 Labourers
(45k/year) (2
year)

7 Labourers
(45k/year) (3, 4
& 5 Year)

General
Manager
(80k/year)

IT Infrastructure
Adm officer Marketing and Supervisor
Manager
(55k/year) Sales (75k/year) (60k/year)
(75k/year)

3 Labourers Graphic
(45k/year) (1st Designer
year) (45k/year)

5 Labourers
(45k/year) (2
year)

7 Labourers
(45k/year) (3, 4
& 5 Year)

Figure 67 - Organisational Structure

The estimation of the labourers/year was based on the production obtained by labourer during the
following part of the document during the variable cost analysis.

Total Products Total Labour (6750 Products Labourer/Year) Formatted Table

1 Year 15500 3
2 Year 31000 5
3 Year 46500 7
4 Year 46500 7
5 Year 46500 7

62
63
10.2.2 Variable Costs

10.2.2.1 Materials
The parts to fabricate the product are according to APENDIX B; the following table describes the total cost of materials to fabricate one product. In terms to obtain a closer
estimation of the materials in APPENDIX D, are described the quotes obtained from different vendors. Some parts where estimated according similar parts prices found in
the market, such as brackets in stainless steel 304. The cost/unit will be further assessed during the development stage and using as a base price/part from the obtained
values as described in the table below.

Total Total
ITEM QTY DESCRIPTION MATERIAL Unit Total Units Mould Mould Price $/Part US AUD Vendor Formatted Table
1 16 Roller Polyethylene, High Density (HDPE) Part 2827200 4,827.00 0.23 3.62 4.75 icomold.com (usa)
10 16 ITEVEO Assembly PP Polypropylene Part 2827200 10,312.00 1.06 16.89 22.20 icomold.com (usa)

ITEM QTY DESCRIPTION MATERIAL Unit Qty Vendor Price Total Price AUD Vendor
2 1 Stiffener and Support Pl 676x65 Thk 12 Pine $/m 2,700 2.48 1.68 Bunnings
3 1 Bracket PL 206x60 Thk 3 Stainless Steel, Austenitic kg tooling=AUD$8000 0.79 estimated tool$/parts + $/kg
4 2 AS 1421 - M3 x 8 Cup Point Set Screws Steel, Mild Box 100 37.71 0.75 Ebay
5 2 Clevis Pin Ref No R3453.006 Ø6 x 13 Igumid Box 1,000 0.78 1.56 automotioncomponents.co.uk/
6 1 OD Ø9.52 WT1.2 Stainless Steel, Austenitic m 6 3.82 0.43 www.design53.com.au/
7 2 AS 1427 - M8 x 20 SS 304 0.45 0.90 classicfateners.com.au
8 2 E-Ring ANSI B27.7 - 64.85 Steel, Mild Box 200 0.08 0.16 estimated
9 2 Flat metal washers AS 1237 - M10 Steel, Mild Box 200 0.07 0.14 classicfateners.com.au
11 1 Bracket PL 206x60 Thk 3 Stainless Steel, Austenitic kg 0.79 estimated
12 4 AS 1427 - M5 x 12 SS 304 Box 0.12 0.48 classicfateners.com.au
13 1 PL 185x150 Thk 12 Standard Particle Board sqm 0.03 25.75 0.71
14 1 PL 185x150 Thk 12 Standard Particle Board sqm 0.03 25.75 0.71 vision6.com.au
15 1 PL 742x160 Thk 12 Standard Particle Board sqm 0.12 25.75 3.06
16 6 Self-Taping #6 1" Wood Screw Steel, Mild 0.23 1.38 classicfateners.com.au
Adhesive Stainless Steel Sheet
17 1 732x150 Stainless Steel, Austenitic Roll 600mmx5m 36.00 1.50
18 2 Magnetic Disc Neodymium 1,000 0.28 magnet.com.au/
19 2 Metal Inserts Mild Steel 0.10
Total
Units ### Cost / Unit 42.38

64
10.2.2.2 Production Estimation
It is required to have a production during the first year of 8products/day.

Minimum recommended equipment: CNC for wood cutting, Edge bander to apply edging on cut
boards, Table-saw to cut stainless steel roll to size, cordless drills, air saw and compressors for air
tools. Three (3) operators obtaining an estimated time 0.2h/product.

The following process is considered as the minimum to fabricate one product which will be
measured during the year 0 of the company to achieve more accurate estimations.
Labour Formatted Table
Item Process Time (min) Operator
Item 13 - 14 CNC Operator 1
Setting Up 2
Cut to size
Drill Holes Ø6mm 0.5
2 Slots
Drill 6x Ø2.4mm - 10 0.5 Operator 2
Add edging 4 sides 2 Operator 2 EdgeBander Tool
Item 15 CNC
Cut to size
0.5
Drill Holes Ø2.4 CNC
Add edging all around 1 Operator 2 EdgeBander Tool
Item 2 Table Saw
Cut to size 0.5 Operator 1
Drill Holes 4x ØM5 - 15 1 Operator 2
Item 6 Thread tapping (2x) M8x1.25 -20 1 Operator 1
Item 17 Cut to size 1 Operator 2
Packing 2 Operator 3
Total Time 0.2 hours/product

The following table describes the estimation of production that one labourer can generate/year
according to 52 weeks/year and estimated as a full time contract employee.
Production / Labourer Formatted Table
52 weeks/year
-4 weeks annual leave/year
-2 weeks sick leave/year
-1 week training/year
45 available weeks
5 days/week
6 hours/week
1350 hours production/year
0.2 hours/product
6750 Total Products/Year / labourer
3 Labourers
20250 Products / Year

10.2.2.3 Variable Cost Analysis

Formatted Table
Life Cycle Stage Dev Intro Growth Growth Mature Mature
Year 0 1 2 3 4 5
Production 1,000 15,500 31,000 46,500 46,500 46,500
Cost of Sales $/product
Consumables (production) 42.38 42,385 656,963 1,313,927 1,970,890 1,970,890 1,970,890
42,385 656,963 1,313,927 1,970,890 1,970,890 1,970,890

Operative Variable - Other $/1000 products

Electricity (production) 30 30 465 930 1,395 1,395 1,395
Fuel (Forklift - LPG) 10 10 155 310 465 465 465
Insurances (variable) 20 20 310 620 930 930 930

65
 Postage (variable) 50 50 775 1,550 2,325 2,325 2,325
Printing and stationary 150 150 2,325 4,650 6,975 6,975 6,975
Repairs and maintenance 20 20 310 620 930 930 930
Telephone 5 5 78 155 233 233 233
Transport and Logistics 2500 2,500 38,750 77,500 116,250 116,250 116,250
2,785 43,168 86,335 129,503 129,503 129,503
Cost / unit 2.79

Operative Variable - Labour Total Labour 1 3 5 7 7 7

Gross Wages and Allowances
(50k) 45000 45,000 135,000 225,000 315,000 315,000 315,000
Leave Loading (4wks) 17.50% 606 454 757 1,060 1,060 1,060
Superannuation 12% 5,473 23,705 39,508 55,311 55,311 55,311
WC Insurance 6% 2,736 8,127 13,545 18,964 18,964 18,964
53,815 167,286 278,810 390,334 390,334 390,334
Cost / Unit 8.6

10.2.2.4 Fixed Costs

The tables below list the estimated equipment, software; physical and human infrastructure
required to run the business and the prices in AUD$. With a high capital injection in marketing
considered as the core to succeed in the venture, estimated in AUD$70.000/year.

Life Cycle
Stage Dev Intro Growth Growth Mature Mature Formatted Table
Year 0 1 2 3 4 5
Operative Fixed annual Production 1,000 15,500 31,000 46,500 46,500 46,500
Accountancy (External) 10,000 10,000 10,000 10,000 10,000 10,000
Bank fees and charges 200 200 200 200 200 200
Cleaning 10,000 10,000 10,000 10,000 10,000 10,000
Filing Fees 200 200 200 200 200 200
Insurances (fixed) 2,000 2,000 2,000 2,000 2,000 2,000
Workstations 526 526 526 526 526 526
IT Infrastructure (Adobe Suite, Inventor,
Office, Servers, Computers) 9,319 9,319 9,319 9,319 9,319 9,319
6 computers 2,400 2,400 2,400 2,400 2,400 2,400
Adobe Suite 2,000 2,000 2,000 2,000 2,000 2,000
Autodesk Inventor 1,701 1,701 1,701 1,701 1,701 1,701
Server with windows support 2,000 2,000 2,000 2,000 2,000 2,000
Microsoft Office 1,206 1,206 1,206 1,206 1,206 1,206
Domain .com.au 12 12 12 12 12 12
Marketing (std adverts) 2,000 2,000 2,000 2,000 2,000 2,000
Postage (fixed) 500 500 500 500 500 500
Plant, Equipment (Tools, CNC 35k, Table 8,200 8,200 8,200 8,200 8,200 8,200
Saw 3k, Edge Bander 2k, Hand Tools 1k)
Printing and stationary 500 500 500 500 500 500
Rent (189sqm) 21,000 21,000 21,000 21,000 21,000 21,000
Telephone 1,000 1,000 1,000 1,000 1,000 1,000
Utilities 4,000 4,000 4,000 4,000 4,000 4,000
Vehicle - Hire Purchase 5,000 5,000 5,000 5,000 5,000 5,000
Waste (General) 2,000 2,000 2,000 2,000 2,000 2,000
76,445 76,445 76,445 76,445 76,445 76,445
Cost per unit 2.45

Operative Fixed Budgeted

Consultant Fees 5,000 5,000 5,000 5,000 5,000 5,000
Donation / charity events 1,000 1,000 1,000 1,000 1,000 1,000
Marketing (strategy) 70,000 70,000 70,000 70,000 70,000 70,000
Network / Membership FIAA Fees 1,500 1,500 1,500 1,500 1,500 1,500
R&D 5,000 5,000 5,000 5,000 5,000 5,000
Travel Expenses 5,000 5,000 5,000 5,000 5,000 5,000
Training 4,000 4,000 4,000 4,000 4,000 4,000
Vehicle - Running 3,000 3,000 3,000 3,000 3,000 3,000

66
 Gross Wages and Allowances Admin & Mgt 345,000 345,000 345,000 345,000 345,000 345,000
Leave Loading (4wks) 17.50% 1,161 1,161 1,161 1,161 1,161 1,161
Superannuation 12% 41,539 41,539 41,539 41,539 41,539 41,539
WC Insurance 6% 2,562 2,562 2,562 2,562 2,562 2,562
484,762 484,762 484,762 484,762 484,762 484,762
Cost per unit 15.55

10.2.3 Targeted Investments

The injections of capital into the venture were selected as common requirements that will present
future investments to keep the business running and/or emergency budget.

Life Cycle Stage Dev Intro Growth Growth Mature Mature Formatted Table
Year 0 1 2 3 4 5
Operative Others Targeted
Investments Production 1,000 15,500 31,000 46,500 46,500 46,500
Repairs and maintenance 3,000 3,000 3,000 3,000 3,000 3,000
IP Protection 2,000 2,000 2,000 0 0 0
IT 2,000 2,000 0 0 2,000 0
Plant, Equipment 0 0 20,000 10,000 0 0
7,000 7,000 25,000 13,000 5,000 3,000
Cost per unit 0.32

10.2.4 Total Venture Cost

The total cost of the venture includes: Variable Costs, Fixed Costs and Targeted Investments. The
establishment investment AUD$667,192defined as the “Year 0 development” is included the
fabrication of 1000 prototypes that will lead the company to improve the manufacturability technics,
designs and experience.
Total Venture Cost Formatted Table
Year Establishment Fixed Costs Variable Costs Targeted Annual Costs
0 Dev 667,192 667,192
1 Intro 0 561,207 867,417 7,000 1,435,624
2 Growth 0 561,207 1,679,072 7,000 2,247,279
3 Growth 0 561,207 2,490,726 13,000 3,064,934
4 Mature 0 561,207 2,490,726 5,000 3,056,934
5 Mature 0 561,207 2,490,726 3,000 3,054,934
667,192 2,806,037 10,018,668 35,000 13,526,897

During the establishment of the venture, it will include the acquisition of the infrastructure to start
up the business which is included hiring high qualified personnel as described during the
organisational structure, machinery, software and location. Obtaining as initial investment the value
as described above.

10.2.5 Venture Earnings

The venture earnings before tax (EBITDA) are derived from the total costs obtained above and the
annual revenues obtained from the market analysis. Figure 68 describes the graphical behaviour of
the venture in a 5 years’ period. The EBITDA as shown in the figure, starts from the development
with a negative value representing the establishment, during the introduction in a price of $120/unit
will be expected to present a steady rise during the first three years, as expected during the final
year of growth where the company should obtain higher shares of the market, will remain steady
during the mature stage and expected to decrease after the fourth year.

67
The breakeven point where the difference of the earnings from sales and the total costs of the
venture is equal to zero is expected in the 19th month from the introduction stage, described during
the financial indicators of the venture.

Venture Earnings Formatted Table

Year Annual Costs Annual Revenue Annual EBITDA
0 Dev 667,192 0 -667,192
1 Intro 1,435,624 1,767,000 331,376
2 Growth 2,247,279 2,797,750 550,471
3 Growth 3,064,934 3,975,308 910,374
4 Mature 3,056,934 3,975,308 918,374
5 Mature 3,054,934 3,534,000 479,066
Totals 13,526,897 16,049,367 2,522,470

5,000
Thousands

4,000

3,000

2,000

1,000

0
0 Dev 1 Intro 2 Growth 3 Growth 4 Mature 5 Mature
-1,000

Establishment Fixed Costs Variable Costs

Targeted Annual Costs Annual Revenue
Annual EBITDA

5,000
Thousands

4,000

3,000

2,000

1,000

0
0 Dev 1 Intro 2 Growth 3 Growth 4 Mature 5 Mature
-1,000

Establishment Fixed Costs Variable Costs

Targeted Annual Costs Annual Revenue
Annual EBITDA

Figure 68 - Cost & Revenue Analysis

68
10.2.6 Financial Indicators

10.2.6.1 Payback Period& Return on Investment

The return of the investment will be reflected during the first and the second year followed by the
introduction period; from interpolation 19 months after the introduction period the venture will
start the brake even point obtaining a positive return.

The return of the investment RoI by the end of the fifth year will represent almost four times the
initial investment followed by three times and twice in the forth and third year respectively.

Year Annual EBITDA Net return RoI Breakeven Point Formatted Table
0 -667,192 -667,192 1.61 Years
1 331,376 -335,816 -50.33% 19 Months
2 550,471 214,655 32.17%
3 910,374 1,125,029 168.62%
4 918,374 2,043,403 306.27%
5 479,066 2,522,470 378.07%
TOTALS 2,522,470 4,902,549

10.2.6.2 Net Present Value (Discounted EBITDA)& IRR

From the expected profit rate 25% of the venture obtained in the market price analysis, the
discounted EBITDA or Net Present Value after the fifth year is as described in the table below. The
table demonstrates a positive gain from the earnings of the venture. From the second year the
venture presents a positive performance with a considerable increment during the following years.

Formatted Table
25% RRR
Year Annual EBITDA Discounted Value IRR
0 -667,192 -667,192
1 331,376 265,101 -60%
2 550,471 352,301 -5%
3 910,374 466,112 26%
4 918,374 376,166 37%
5 479,066 156,980 40%
TOTAL 2,522,470 949,468
NET RETURN NPV

The discounted value $949.468 represents the present value of gains before tax obtained from the
investment of $667.192 during the five years’ period at a discounted rate of 25%.

It represents a considerable amount of investment to obtain almost $1’000.000 in present money,

however, if the same amount is compared with the same amount of money invested in 5 years in St.
George Bank at an interest rate of 3.1% and a five years’ investment in Australian Bond at 5.75% the
following analysis indicate that the venture is viable, providing higher gains. This makes it still
attractive for investors if a proper management of risks is applied in our venture. The internal rate of
return IRR demonstrates a profit rate of 39% from the investment.

5 Years Investment Formatted Table

St. George Bank DR
Initial Investment 3.10% Net Return Discounted Value
$667,192.00 -667,192 0 0

69
 687,875 20,683 20,061
709,199 42,007 39,519
731,184 63,992 58,392
753,851 86,659 76,697
NET PAYBACK 2,214,917 213,341 194,669

5 Years Investment GTAUD5Y:GOV Aust Bond

Initial Investment 5.75% Net Return Discounted Value
667,192 -667,192 0 0
705,556 38,364 36,278
746,125 78,933 70,583
789,027 121,835 103,022
834,396 167,204 133,698
2,407,912 406,336 343,581

11 COMMERCIAL RISK ANALYSIS

In terms to measure the risk associated with the commercial feasibility. Applying for this purposes
the Monte Carlo simulation commonly used to assess the risks presented in quantified events.

For this case we will start with assumptions and applying AS/ISO 31000:2009 recommendations for
risks management. Furthermore, the simulations of scenarios presented during the venture to
obtain a probability plot that will define the expected monetary value.

11.1 RISK CATEGORIES

Some of the categories where risks can be presented during the execution of the venture as
described in Figure 69 , For each category subcategory (red) where is likely to present a risks for the
venture.

For the detection of risks in the Technical Category were applied design tools such as design tree,
process tree and brainstorming approaches described during the following points of this document.
And the probability of risks as obtained applying a tie bow analysis (APENDIX E).

For the external events, were obtained from the list of common risks from the Allianz barometer
2016 in Figure 70.(Allianz 2016).

The risks presented during the project management during the estimation were considered as an
increase in the values for the estimated parts of the product.

70
 Requeriments

ITVEO Technical Risks Technology

Complexity and Interfaces
Performance and Reliabilities
Quality

Subcontractors and Suppliers

External Regulatory
Market
Customer
Weather

Estimating
Project Management Planning

Controlling

Communication

Requeriments

ITVEO Technical Risks Technology

Complexity and Interfaces
Performance and Reliabilities
Quality

Subcontractors and Suppliers

External Regulatory
Market
Customer
Weather

Estimating
Project Management Planning

Controlling

Communication

Figure 69 - ITEVEO Risks Categories

Figure 70 - Allianz Risk Barometer 2016, p15

71
11.2 RISK IDENTIFICATION
The execution of a process tree and design tree analysis was used to identify the risks in the actions
presented during the product utilisation/performance (Chapter 5). Figure 71describes the process,
risks presented and the categories that could be affected in presence of the risks. In red the risks
that will require further assessment.

72
Process Tree Open to placing Container Failure Quality
Market
the t-shirts Requeriments

Magnets or metal inserts bound failure Quality

Market

T-shirt Inserted No risk detected

Smash a finger tip 4N force Reliability

Close tight with
magnets

Excesive doward force that can detach Reliability

Open access door the wall plugs.
Market

Failure in the door pivot points that Quality

can make the door assembly fail Reliability

Market

Excesive downward force that can Reliability

Slide it in detach the wall plugs

Possible bending of the Stainless Steel Quality

Reliability
tube or failure in the screw tighten
Requeriments
force that can detach the assembly. Market

Excesive doward force that can detach Reliability

Close the access the wall plugs.
door
Market

73
 Process Tree Open to placing Container Failure Quality
Market
the t-shirts Requeriments

Magnets or metal inserts bound failure Quality

Market

T-shirt Inserted No risk detected

Smash a finger tip 4N force Reliability

Close tight with
magnets

Excesive doward force that can detach Reliability

Open access door the wall plugs.
Market

Failure in the door pivot points that Quality

can make the door assembly fail Reliability

Market

Excesive downward force that can Reliability

Slide it in detach the wall plugs

Possible bending of the Stainless Steel Quality

Reliability
tube or failure in the screw tighten
Requeriments
force that can detach the assembly. Market

Excesive doward force that can detach Reliability

Close the access the wall plugs.
door
Market

Figure 71 - Process Tree Risk Identification

From Figure 72 the identification the components where is likely to appear a risks and the category
affected by the risks. In red the components that will be further assessed.

74
 Previously identified

Design T-shirt
Tree container
Lose of magnetic force or break Quality
Magnets Reliability
Requeriments
Market

Fail to mantain a static and balanced system Reliability

Main Brakets
Requeriments

Market

Screw and bracket attachment failure Reliability

Stiffener

Excessive friction making difficult to slide the Reliability

Rollers containers
Quality

Market

Attachment failure Reliability

Access Door

Attachment failure Reliability

Side Wood Plates
Excessive friction with the stopper and wearing Quality
out the wood, failuring to mantain the assembly Reliabiliy
in place. Market
Failure to perform its function due to execesive Reliability
Screws torque, or not enough tighting force.

Bounding failure Quality

Stainless Steel Reliability
Adhesive Cover Market
Requeriments

75
 Previously identified

Design T-shirt
Tree container
Lose of magnetic force or break Quality
Magnets Reliability
Requeriments
Market

Fail to mantain a static and balanced system Reliability

Main Brakets
Requeriments

Market

Screw and bracket attachment failure Reliability

Stiffener

Excessive friction making difficult to slide the Reliability

Rollers containers
Quality

Market

Attachment failure Reliability

Access Door

Attachment failure Reliability

Side Wood Plates
Excessive friction with the stopper and wearing Quality
out the wood, failuring to mantain the assembly Reliabiliy
in place. Market
Failure to perform its function due to execesive Reliability
Screws torque, or not enough tighting force.

Bounding failure Quality

Stainless Steel Reliability
Adhesive Cover Market
Requeriments

Figure 72 - Design Tree Risk Identification

11.3 RISK CONSEQUENCES

The following table representing a summary obtained from the identification of risks and their
probability obtained during the analysis in APENDIX E.
Category Risks LikelihoodImpact Consequence Probability Formatted Table
Technical Plastic T-Shirt Container failure B5 High Reputation, costly payment for 70%
warranties
Magnets detach from container C5 Med Hi Reputation, costly payment for 30%
warranties
Loss of magnetic properties (Break E5 Medium Reputation, costly payment for 5%
or high temperatures) warranties
Door Pivot points damage E5 Severe Reputation, costly payments for 5%
warranties or user injured
External Market Developments (Volatility, B2 Low Med Competition strategies were 50%
Intensified Competition, Market previously analysed.
Stagnation)
Macroeconomic B3 Medium Currency changes, costly 50%
payments for materials or parts

76
 Cyber Incidents C3 Medium Can affect sales and lose clients, 30%
costly maintenance.
Loss of reputation or brand value D5 Med Hi Can affect the venture to 10%
bankruptcy.
Changes in legislation and regulation E2 Low 5%
Talent shortage, aging workforce E2 Low 5%
Political Risks E4 Medium Costly maintenance, lose clients. 5%
Pj. Estimation D5 Med Hi Unlikely, however, could affect 10%
Management the variable prices to
bankruptcy.

The cost analysis of the scenarios will be assessed for those who have a probability of occurrence
above 30% with their estimated financial causes as described:

Category Risks Financial Consequence Probability NVP (-) Risk NVP Total Losses NVP Formatted Table

2000 products returned

Plastic T-Shirt Container
and loses of 10% of the 70% 802,583 561,808
failure
targeted market
Technical
2000 products returned
Magnets detach from
and loses of 10% of the 30% 802,583 240,775
container
targeted market

Market Developments
(Volatility, Intensified Sales reduction 20% during
50% 407,072 203,536
Competition, Market the third year
Stagnation)
External
Products price increase 5%
Macroeconomic 50% 72,655 36,327
during 4th 5th year
0 Sales during the third
Cyber Incidents 30% 339,226 101,768
year for two months

1. Market Loses -10% 25% RRR 2. Market Development 25% RRR Formatted Table
Year Annual EBITDA Discounted Value IRR Year Annual EBITDA Discounted Value IRR
0 -667,192 -667,192 0 -667,192 -667,192
1 154,676 123,741 -81% 1 331,376 265,101 -
2 270,696 173,245 -39% 2 550,471 352,301 -
3 512,844 262,576 -7% 3 115,313 59,040 -
4 520,844 213,338 6% 4 918,374 376,166 -
5 125,666 41,178 7% 5 479,066 156,980 -
TOTAL 917,533 146,886 TOTAL 1,727,408 542,397
NET RETURN NPV NET RETURN NPV

4. Macroeconomic 25% RRR 5. Cyber Incidents 25% RRR

Year Annual EBITDA Discounted Value IRR Year Annual EBITDA Discounted Value IRR
0 -667,192 -667,192 0 -667,192 -667,192
1 331,376 265,101 -60% 1 331,376 265,101 -60%
2 550,471 352,301 -5% 2 550,471 352,301 -5%
3 910,374 466,112 26% 3 247,823 126,885 6%
4 819,830 335,802 36% 4 918,374 376,166 24%
5 380,522 124,689 38% 5 479,066 156,980 28%
TOTAL 2,325,381 876,813 TOTAL 1,859,918 610,242

77
11.4 RISK TREATMENT
From the previous analysis, its concluded that some of the risks can be controlled and avoided by
clearly specify in the user manual the “how’s” to successfully attach or use the ITVEO assembly, as
well as, avoid any responsibility involving the venture by not following the instructions.

Technical

 Wall attachment failures: It must be clearly defined the best method of attachment,
avoiding attachments on fragile surfaces such as plaster boards. Or using inadequate wall
plugs that will not be able to withstand the loads such as gravity loads or some excessive
force in the assembly. Wall plugs will not be provided and recommended to perform
attachments on wall frames (studs or fire blocks).
 Friction in Rollers: The friction between rollers will be avoided by applying unilateral
negative tolerances followed by a quality assurance inspection every 100 rollers, ensuring a
maximum roller length and providing a gap between them.
 Screws Failure, Main Brackets and Stiffener: It is required to specify the effective tighten
force that can be performed by an adult using conventional screw drivers Philips head by
applying measurements during the prototype tests, as well as, a clear specification of the
required maintenance periodically to keep a tight assembly.
 Plastic Container Failure: From the appendix E Bow Tie Analysis the following barriers were
obtained that can prevent the risks presented during this scenario:
o Prior to prototype test identify with high accuracy the conditions in which the
product will be exposed and create conditions with an excess of 5 the value of
condition. (Force x 5)
o Maintain a standard of data organisation to facilitate verification of information.
Information must be verified 3 times before approval.
o Contracting with suppliers that are certified with ISO 9000 standards.
o Apply QA methodologies to ensure product conformance.
o Clearly specify on user manual the correct manipulation of the product.
o Apply reputation strategies and include the acquisition of a 1-800 number for
complains or enquiries.

External

 Business Interruption: Can be avoided by obtaining tow providers for each part or materials.
If some of these materials are required to be imported, find the possibility to be imported
from two different countries.
 Market Development: Lack of capacity to growth obtaining a highly negative Net Present
Value, with the possibility of bankruptcy. The strategies for the occurrence of this event will
be assessed during the continuous development of the business applying continuous
monitoring of the business indicators.
 Natural Catastrophe: A natural catastrophe such a bushfire, can have serious incidents
during the life-cycle. To avoid these risks, the venture should obtain insurances to cover
majority of them, included a periodically cloud back up of the information.
 Reputation: Reputation can seriously affect the entire future of the business, and has to be
assessed during periodic monitoring of the customer behaviour through enquiries and
surveys.
 Macroeconomic: Requires further investigation to develop the strategies necessaries to
mitigate the impact.

78
  Cyber Incidents: Impact can be reduced by implementing security of information,
continuous backups to restart servers in case of incidents.
 Loss of reputation or brand value: Continuous surveys to customers should be analysed,
furthermore, the venture should provide high customer service including the development
of a database of incidents and surveys, to measure in real-time the customer response.
 Estimation: Assessed during the business interruption.

11.5 EXPECTED MONETARY VALUE

The following analysis defines the VPN analysing the risks associated with the venture after are
mitigated or reduced.

The identification of the Market Development and Macroeconomic risks as vulnerabilities for this
analysis will be included during this section, due to the difficulty to mitigate this risk. The comparison
will be done versus two values, optimistic, normal venture and leaving the investment in the bank
for five years at an interest rate of 3.2%p.a.

Scenario Formatted Table

Option Description Outcome Probability EMV Option EMV
NPV (MVP) (NPV)
2. Market Development 542,397 10.00% -54,240
4. Macroeconomic 876,813 10.00% -87,681
656,658
8. Optimistic 1,339,509 10.00% 133,951
9. Base 949,468 70.00% 664,628
St. George Bank 3.1% 194,669 99.00% 192,722 192,722
Term Deposit 5 years
Aust Bonds 5.75% 343,581 99% 340,145 340,145

The expected monetary value for the venture in comparison is still in a positive value; however, the
expectations for the business were estimated in 70% with a chance of probability for earnings and
not controlled risks equally distributed.

What is obtained from the values above confirm that the venture is attractive alternative compared
to common investments also, including highly economical risks that can affect the business.

79
12 CONCLUSIONS

Problem, opportunity, embodiment of the product

The product ITVEO was developed from a present problem and the idealisation of the future, where
home owners will find smaller spaces to live due to an elevated increment of population and the
higher prices to obtain land (as perceived today by the authors). The opportunity to improve the
utilisation of space to store items is a necessity that brought to the development of the product,
identifying a common problem to store folded t-shirts and accessing them, applying inventive
approaches that conclude in the embodiment of the product ITVEO.

After applying simultaneous designs and approaches, we still find the necessity to improve it
through the development and testing of prototypes, which was not part of the scope of this
document but is part of the engineering design process.

From the product we concluded that ITVEO covered the problem and attained the opportunity in
every aspect. Currently, there is not a product like ITVEO on the internet, patented or registered.
However, patenting authorities world-wide consist of a massive database, that would require of
specialize bodies to research the invention. Therefore, the inventive processes applied, had a
functional purpose when applied correctly.

Market Analysis

For the commercialisation of the product, the sector definition and the market opportunity, started
from a conservative assumption where potential customers will acquire one product/dwelling, in
terms to analyse the viability of the product with significant boundaries. Existing the possibility of a
higher market sector if its applied thoroughly the marketing strategies such as internet promotion
through social networks, YouTube and Google AD’s amongst others.

The opportunity to promote the product through retailer business will require further assessments,
due that the manufacturing costs are still high, affecting in a considerable way the earnings of the
venture if we introduce our product into the retailer business policies and the increment of
rejections due to damages done by the curiosity of potential customers.

From the market analysis we concluded to explore the online business, with a share market around
AUD$360m for online furnishing business. Providing us with the reliability of a potential market to
explore and compete with industry giants such as IKEA, Super A-Mart and Whitmor and incursion
through the market lifecycle in the stages of the BCG matrix, starting from a question mark investing
$640.000, to become stars of our product in the third year and experience a cash cow with a market
share gain of AUD$16.000.000at the end of the fifth year before becoming dogs.

Commercial Feasibility

The commercial strategies were derived from the total market to cover and an expected growth
around 50%/year with a behaviour according to the BCG matrix.

80
The cost/component obtained through internet research and quoting from specialised industries,
was used as a base to value the commercial feasibility, existing an elevated possibility to reduce the
price/unit (currently at $42/product) by the identification of suppliers from china, as well, Australia
applying mass production deals.

The required labour and machinery to fabricate and packing the product was assessed through
estimation of times that will be measured during the development of the venture, obtaining 6750
fabricated products/labourer/year. Identifying by the end of the fifth year the necessity to employ 7
labourers to withstand the fabrication requirements, obtaining a total of $52.79/unit fabricated.

The fixed costs estimation derived from the necessity to develop a strong market strategy lead us to
define the total personnel required during the five years and the resources to achieve the market
goals. Obtaining fixed costs of $2.806.037 and Targeted investments in maintenance and IP
protection of $35.000.

The analysis concluded with a venture that will provide a present value of $949.000 with an initial
investment of $640.000, finding the breakeven point at 19months from the introduction, with a total
rate of return of 39%.

Risk Management

The principles of ISO/AS:31000 were applied to assess and provide recommendations to control the
risks presented during the execution of the venture in the selected contexts (Technical, External and
Project Management). In concluding with market development and macroeconomic risks that can
affect the expected monetary value it will require further examination and controls to measure their
progression during the development of the venture.

After all the risks were assessed, the venture obtained an EMV of $656.658. In comparison with
other investments with low risk likelihood ITVEO venture still provides trust for investment.

The final steps are the beginning of a venture with a positive outcome, a new enterprise that will
challenge the industry giants and make from small spaces an infinite world of ideas.

81
13 REFERENCES
A-Mart, S 2015, Spacesaver Module Wire Basket 6 Drawer 1900, Viewed 26 April 2016,
http://www.superamart.com.au/storage/spacesaver/spacesaver-49173/.
Allianz 2016, Allianz Risk Barometer Top Business Risks 2016, Allianz SE and Allianz Global Corporate
& Specialty SE, Viewed 14 May 2016,
http://www.agcs.allianz.com/assets/PDFs/Reports/AllianzRiskBarometer2016.pdf.
ATMOSS: IP Australia, 2011, September,
http://pericles.ipaustralia.gov.au/atmoss/falcon.application_start.
AU Designs Data Searching: IP Australia, 2016, May 10,
http://pericles.ipaustralia.gov.au/adds2/adds.adds_start.intro.
AusPat: IP Australia, 2011, September, http://pericles.ipaustralia.gov.au/ols/auspat/quickSearch.do.
Australian Bureau of Statistics. 2011a, B32 Tenure Type and Landlord Type by Dwelling Structure,
Australia, State, Statistical Area Level 4 (SA4), Statistical Area Level 3 (SA3), and Statistical
Area Level 2 (SA2), viewed 15 April 2016,
http://stat.abs.gov.au/Index.aspx?DataSetCode=ABS_CENSUS2011_B32.
—— 2011b, B36 Dwelling Structure by Number of Bedrooms, Australia, State, Statistical Area Level 4
(SA4), Statistical Area Level 3 (SA3), and Statistical Area Level 2 (SA2), viewed 15 April 2016,
http://stat.abs.gov.au/Index.aspx?DataSetCode=ABS_CENSUS2011_B36.
—— 2015, Motor Vehicle Census, Canberra, 2015, cat.no 9309.0.55.003, viewed 3 April 2016,
http://www.abs.gov.au/ausstats/abs@.nsf/mf/9309.0.
FIAA, AFA 2014, Industry, Australian Furniture Association, Viewed 27 April 2016,
http://www.australianfurniture.org.au/industry.
IBISWorld 2015, Online Household Furniture Sales in Australia: Market Research Report, Viewed 27
April 2014, http://www.ibisworld.com.au/industry/online-household-furniture-sales.html.
IKEA 2015a, HJÄLMAREN Wall shelf, Viewed 26 April 2016,
http://www.ikea.com/au/en/catalog/products/80246772/.
—— 2015b, STOLMEN, Viewed 26 April 2016,
http://www.ikea.com/au/en/catalog/products/S09002288/.
—— 2015c, Welcome Inside our Company, Viewed 26 April 2016,
http://www.ikea.com/ms/en_AU/about-the-ikea-group/company-information/.
Ironbridge 2012, BBQSAM, Viewed 27 April 2016, http://www.ironbridge.com.au/portfolio-
1/BBQSAM.
Kroes, S 2015, Inventive design for entrepreneurs : a practical guide / by Sander Kroes, Five Y's Pty
Ltd, Mount Ousley, NSW :.
Leboff Grant,Six steps to defining your target market, viewed 15 April 2016,
http://www.marketingdonut.co.uk/marketing/marketing-strategy/your-target-market/six-
steps-to-defining-your-target-market.
MaRS 2009, How to estimate market size: Business and marketing planning for startups, Viewed 28
April 2016, https://www.marsdd.com/mars-library/how-to-estimate-market-size-business-
and-marketing-planning-for-startups/.
Martin Reeves, SM, Thijs Venema 2014, BCG Classics Revisited: The Growth Share Matrix June 4,
https://www.bcgperspectives.com/content/articles/corporate_strategy_portfolio_manage
ment_strategic_planning_growth_share_matrix_bcg_classics_revisited/.
Mitchell, S 2015, IKEA Australia plans small stores ahead of online push, Sydney Morning Herald, July
2, 2015, Viewed 27 April 2016, http://www.smh.com.au/business/ikea-australia-plans-
smallformat-stores-ahead-of-online-push-20150630-gi1e2c.html.
NetMBA 2010, The Product Life Cycle, Viewed 27 April 2016,
http://www.netmba.com/marketing/product/lifecycle/.
Plan_and_Organize_Life.com,Organize your Bedroom Dresser Drawers, viewed 2 April 2016,
http://www.plan-and-organize-life.com/bedroomdresser.html.

82
Prior art: IP Australia, 2015, http://www.ipaustralia.com.au/patents/faq/Prior%20Art.htm.
Research, Caravan Industry Association of Australia, viewed 3 April 2016,
http://www.caravanindustry.com.au/research.
Statista.com 2016, Furniture & home appliances, Viewed 28 April 2016,
https://www.statista.com/outlook/247/107/furniture-home-appliances/australia#market-
revenue.
Understanding IP: IP Australia, 2011, September, https://www.ipaustralia.gov.au/.
Unknown 2015, Enduring Bamboo Charcoal Foldable Clothes Bag Window Storage Case Organizer
Box, Viewed 26 April 2016, http://www.ebay.com.au/itm/Enduring-Bamboo-Charcoal-
Foldable-Clothes-Bag-Window-Storage-Case-Organizer-Box-/161777973637.
Whitmor Whitmor 6779-4466 Six Shelf Closet System, Viewed 26 April 2016,
http://www.amazon.com/Whitmor-6779-4466-Closet-System-Silver/dp/B00CMXQUTI.
—— 2016, About Whitmor, Viewed 26 April 2016, http://whitmor.com/about-whitmor.
Wikipedia_Contributors 2016, IKEA, Wikipedia, The Free Encyclopedia, Viewed 27 April 2016,
https://en.wikipedia.org/w/index.php?title=IKEA&oldid=716437328.

83
APPENDIX A: ELIMINATION OF CONCEPTS BY PUGH’S CONTROLLED CONVERGENCE

Feature wall shallow depth with divisions

Hybrid Vertical Shelve Two Storage

Hybrid Vertical Shelve Two Storage

Hybrid Vertical Shelve Two Storage

Hybrid Vertical Shelve Two Storage

Conceputal Preliminary Solution

Conceputal Preliminary Solution

Hybrid Rolling Shelving Storage

Hybrid Rolling Shelving Storage

Hybrid Rolling Shelving Storage

Hybrid Rolling Shelving Storage

Individual Hard Container

Individual Hard Container

Individual Hard Container

Retractable Storage

Hybrid Two Storage

Hybrid Two Storage

Hybrid Two Storage

Hybrid Two Storage

Segmentation
1 2 4 5 13 18 19 20 1 5 18 19 20 5 18 19 20 18 19 20
Design Boundary (eg. list by S. Pugh) Initial Convergence Criteria Relative to 1 Relative to 5 Relative to 19 Relative to 18
2 Shelf Life / Storage Product should not include any fragile, short life, corrosive materials or
S S S S 1 1 1 -1 S S S S S S S S
chemical products
3 Quality / Reliability Use high quality materials, robust and engineering design practices
relevant to the product or components to increase reliability. Favoured 1 1 S S S S S -1 -1 -1 -1 1 S S S S
products with robust design
4 Packing Favored product that has compact packing that can facilitate
-1 -1 1 1 1 1 1 -1 1 1 1 -1 S S -1 -1
transportation
6 Maintenance Should be design using more than 50% standard parts that could be found in
1 1 S -1 1 1 1 S S S S S S S -1 -1
any warehouse in Australia
7 Weight The components of the product should have low density materials, avoid as
-1 -1 1 S 1 1 1 -1 1 1 1 1 1 1 -1 -1
possible ferrous materials
8 Market constraints The product should be attractive so retail business would promote it, the
1 -1 -1 S 1 1 1 -1 1 1 1 -1 S 1 -1 S
price of the final product should not exceed aud$250
11 Disposal While using raw materials green design boundaries should be considered.
Favourable environmental friendly products with materials that can 1 1 S S 1 1 1 -1 1 1 1 -1 S S -1 S
disposed
13 Shipping Ideally product should be small in size, separable and some parts foldable,
-1 -1 1 1 1 1 1 -1 1 1 1 -1 S S -1 -1
favor compact products
14 Size Should have a size to fit in an average Australian homes and space efficient,
Ideal product should ocupy a volume inferior to 400mm width, 250mm -1 S S S 1 1 1 -1 1 1 1 -1 S S -1 -1
depth and 1500mm height
15 Processes Favour products with minimum material, fabrication, assembly and packing
-1 -1 S -1 -1 -1 -1 -1 S S S -1 1 1 -1 -1
processes
22 Aesthetics Favour products that integrated with the environment. -1 -1 1 S 1 1 1 -1 1 1 1 -1 1 1 S 1
24 Ergonomics Favored automatic operation. Favour products easy to operate S -1 S S 1 1 1 S S S S -1 1 1 1 1
25 Materials Need to consider Green Design Guidelines with low footprint. Low density,
non-corrosive, slow oxidation, durable materials, Favour products with 1 1 S -1 -1 -1 -1 S -1 -1 -1 -1 S S S -1
recyclable and biodegradable materials.
28 Documentation Minimal documents must be required. Product should include a user
-1 -1 S -1 1 1 1 S 1 1 1 S S S -1 -1
manual for easy installation
30 Safety Favor product that does not introduce risks or hazardous materials -1 -1 S S S -1 -1 S S -1 -1 S S S S S
31 Testing Favored products that required minimal prototyping to produce a final
-1 -1 1 -1 S S S -1 -1 -1 -1 S S S S S
product
Superior 5 4 5 2 11 11 11 0 8 8 8 2 4 5 1 2
Iqual 2 2 10 9 3 2 2 5 5 4 4 5 12 11 6 6
Inferior 9 10 1 5 2 3 3 11 3 4 4 9 0 0 9 8
Total -4 -6 4 -3 9 8 8 -11 5 4 4 -7 4 5 -8 -6
Elimination E E E E E E

84
 Feature wall shallow depth with divisions

Hybrid Vertical Shelve Two Storage

Hybrid Vertical Shelve Two Storage

Hybrid Vertical Shelve Two Storage

Hybrid Vertical Shelve Two Storage

Conceputal Preliminary Solution

Conceputal Preliminary Solution

Hybrid Rolling Shelving Storage

Hybrid Rolling Shelving Storage

Hybrid Rolling Shelving Storage

Hybrid Rolling Shelving Storage

Individual Hard Container

Individual Hard Container

Individual Hard Container

Retractable Storage

Hybrid Two Storage

Hybrid Two Storage

Hybrid Two Storage

Hybrid Two Storage

Segmentation
1 2 4 5 13 18 19 20 1 5 18 19 20 5 18 19 20 18 19 20
Design Boundary (eg. list by S. Pugh) Initial Convergence Criteria Relative to 1 Relative to 5 Relative to 19 Relative to 18
2 Shelf Life / Storage Product should not include any fragile, short life, corrosive materials or
S S S S 1 1 1 -1 S S S S S S S S
chemical products
3 Quality / Reliability Use high quality materials, robust and engineering design practices
relevant to the product or components to increase reliability. Favoured 1 1 S S S S S -1 -1 -1 -1 1 S S S S
products with robust design
4 Packing Favored product that has compact packing that can facilitate
-1 -1 1 1 1 1 1 -1 1 1 1 -1 S S -1 -1
transportation
6 Maintenance Should be design using more than 50% standard parts that could be found in
1 1 S -1 1 1 1 S S S S S S S -1 -1
any warehouse in Australia
7 Weight The components of the product should have low density materials, avoid as
-1 -1 1 S 1 1 1 -1 1 1 1 1 1 1 -1 -1
possible ferrous materials
8 Market constraints The product should be attractive so retail business would promote it, the
1 -1 -1 S 1 1 1 -1 1 1 1 -1 S 1 -1 S
price of the final product should not exceed aud$250
11 Disposal While using raw materials green design boundaries should be considered.
Favourable environmental friendly products with materials that can 1 1 S S 1 1 1 -1 1 1 1 -1 S S -1 S
disposed
13 Shipping Ideally product should be small in size, separable and some parts foldable,
-1 -1 1 1 1 1 1 -1 1 1 1 -1 S S -1 -1
favor compact products
14 Size Should have a size to fit in an average Australian homes and space efficient,
Ideal product should ocupy a volume inferior to 400mm width, 250mm -1 S S S 1 1 1 -1 1 1 1 -1 S S -1 -1
depth and 1500mm height
15 Processes Favour products with minimum material, fabrication, assembly and packing
-1 -1 S -1 -1 -1 -1 -1 S S S -1 1 1 -1 -1
processes
22 Aesthetics Favour products that integrated with the environment. -1 -1 1 S 1 1 1 -1 1 1 1 -1 1 1 S 1
24 Ergonomics Favored automatic operation. Favour products easy to operate S -1 S S 1 1 1 S S S S -1 1 1 1 1
25 Materials Need to consider Green Design Guidelines with low footprint. Low density,
non-corrosive, slow oxidation, durable materials, Favour products with 1 1 S -1 -1 -1 -1 S -1 -1 -1 -1 S S S -1
recyclable and biodegradable materials.
28 Documentation Minimal documents must be required. Product should include a user
-1 -1 S -1 1 1 1 S 1 1 1 S S S -1 -1
manual for easy installation
30 Safety Favor product that does not introduce risks or hazardous materials -1 -1 S S S -1 -1 S S -1 -1 S S S S S
31 Testing Favored products that required minimal prototyping to produce a final
-1 -1 1 -1 S S S -1 -1 -1 -1 S S S S S
product
Superior 5 4 5 2 11 11 11 0 8 8 8 2 4 5 1 2
Iqual 2 2 10 9 3 2 2 5 5 4 4 5 12 11 6 6
Inferior 9 10 1 5 2 3 3 11 3 4 4 9 0 0 9 8
Total -4 -6 4 -3 9 8 8 -11 5 4 4 -7 4 5 -8 -6
Elimination E E E E E E

APPENDIX B: ITVEO GENERAL ARANGEME

85
APPENDIX C: PROJECT WORKLOAD
WBS Alex Macharia Muhammad Pengcheng Antonio Baron Formatted Table
Sajid Du
Executive Summary x X
Introduction X X
Potential Product Ideas X
Problem 1: T-Shirt Organiser X
Problem 2: Proximity Advisor X X
Problem 3: Flat Furniture for RV X
Selected Product Idea X X
Weighted Constraint Matrix X X X X
The product X
Divergence process X
Process tree T-shirt Organiser X
Design Tree, Brainstorming and X
Reverse Brainstorming
TRIZ (Theory of the Inventive X
Problem Solving)
Green Design and Product Lifecycle X X
Green Design Considerations X X
Product Lifecycle X X
The Convergence Process X
Pugh Design Boundaries Access X X X
Concept Elimination Round X
Controlled Convergence X
Summary of Concept Solutions X
Conceptual Embodiment of the X
Selected Product
Intellectual Property X
Market Analysis X X X
Market Entry X X
Commercial Feasibility X X X
Commercial Risk Analysis X X X
References X
APPENDIX excluding APPENDIX F X

86
APPENDIX D: QUOTES

Item 1 - 10: Plastic parts - rollers and ITVEO container US dollars

87
88
ITEM 2: Pine Stiffener DAR 67x11thk

ITEM 3 – 11: Brackets SS 304 3mm thk

89
90
ITEM 4: Set Screws Cup Point

ITEM 5: Clevis Pin

91
ITEM 6: SS 304 Tube 9.52OD WT1.2 or Similar

92
ITEM 7: M8x20 Philips head socket machine screw SS304

ITEM 12: Csk SS 304 Socket Screw M5x12

93
ITEM 13, 14, 15: MDF Panel 900x600 12Thk

94
ITEM 16: Self Tapping 6Gx1” Wood Screw

95
ITEM 17: Self Adhesive Silver Bushed Stainless Steel 600 x 5m

96
ITEM 18: Magnetic Disc

97
APPENDIX E: RISK EVALUATION

Impact Formatted Table

1 Negligible 2 Minor 3 Moderate 4 Significant 5 Severe
A Very Likely 70% Low Med Medium Med Hi High High
Likelihood

B Likely 50% Low Low Med Medium Med Hi High

C Possible 30% Low Low Med Medium Med Hi Med Hi
D Unlikely 10% Low Low Med Low Med Medium Med Hi
E Very Unlikely 5% Low Low Low Med Medium Medium

Category Risks LikelihoodImpact Consequence Probability Formatted Table

Technical Plastic T-Shirt Container failure B5 High Reputation, costly payment for 70%
warranties
Magnets detach from container C5 Med Hi Reputation, costly payment for 30%
warranties
Loss of magnetic properties (Break E5 Medium Reputation, costly payment for 5%
or high temperatures) warranties
Door Pivot points damage E5 Severe Reputation, costly payments for 5%
warranties or user injured
External Market Developments (Volatility, B2 Low Med Competition strategies were 50%
Intensified Competition, Market previously analysed.
Stagnation)

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 Macroeconomic B3 Medium Currency changes, costly 50%
payments for materials or parts
Cyber Incidents C3 Medium Can affect sales and lose clients, 30%
costly maintenance.
Loss of reputation or brand value D5 Med Hi Can affect the venture to 10%
bankruptcy.
Changes in legislation and regulation E2 Low 5%
Talent shortage, aging workforce E2 Low 5%
Political Risks E4 Medium Costly maintenance, lose clients. 5%
Pj. Estimation D5 Med Hi Unlikely, however, could affect 10%
Management the variable prices to
bankruptcy.

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Bow Tie Analysis

A Bow Tie analysis will be executed on the following points in terms to define the strategies to avoid the risks to occur, as well as, identify possible causes
that were not identified previously.

 Plastic T-Shirt Container Failure

Plastic T-Shirt Container Failure

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APPENDIX F: REFLECTIONS
Alex Macharia 5202334 ENGG950 Innovation and Design
The group was formed during the tutorial class; TUTORIAL 4. Initially a group of 5 but one member
was not comfortable and had to shift to another. This meant that the remaining members, Antonio,
Haroon, Pengcheng Du and I would have to work as a 4 member team.

In the beginning states of the group discussions, I had a challenge in coming up with an innovative
idea as it was not an area of my life that I would consider myself an inventive person. This was also
evident in the other team members, as they also had the same challenge as I.

I had a great idea of a fridge magnet guard that initially proved to be an innovative idea but
unfortunately similar products were available online. This was a setback as it cost time and it took
the members back to the drawing board to try and come up with another idea that completely new.
Contributions also from Antonio, Haroon and Pengcheng came to the rescue and from their
combined ideas; the group arrived at one as our design. The t-shirt organiser was the chosen idea
which later changed name to ITVEO.

During the course of the project progress to completion, the team received good feedback not only
from our Tutorial 4 tutor, Sina, but also from other group’s evaluations in tutorial lecture exchange
and also internal team’s reviews. Out tutor, Sina really helped in understanding of WCM and later
the processes of divergent and convergent. TRIZ was a tool that had a challenge in understanding
but his input helped to bring to understanding, Antonio was able to do a good job on it. Pugh design
as well, but Haroon worked on well on it. These were key designs that worked well for our group
project.

I also received feedback on my part on the green design consideration, product lifecycle and the IP
protection, improvement of both executive summary and introduction. Pengcheng Du helped also
greatly helped in the improvement of the executive summary having worked together on it. These
were my strongest areas among editing the whole document with assistance of Antonio to ensure
flow of content in our document.

Overall, all the feedback the group either received individually or as a group from our tutor or from
peers was ultimately for the betterment of the final competition of the innovation and design
project. This was a valuable way to see that we improved on any areas that seemed weak and
needed extra attention. From the Innovation and Design perspective, the lecturer and tutor
demonstrated to me the importance of developing innovative skills as an engineer. This is in order to
remain competitive and relevant in the job market world that is continuously seeing importance of
innovation.

Antonio Baron 5478285 ENGG950 Innovation and Design

The feedback obtained from lectures and tutorials was sufficient to develop the project. The
information developed on this document is based on research and the book recommended for the
subject, which I have been reading constantly and it has provided me with a good understanding of
innovation for entrepreneurs

The group peers, provided me with a valuable experience to improve my self-management skills as
well as improving my skills in project planning with a team focus.

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Sina Ameli and Abheek Basu, who patiently, answered every enquiry and made of the lectures and
tutorials session a fantastic opportunity for improvement and knowledge.

Muhammad Haroon Sajid 5187722 ENGG950 Innovation and Design

The group D3 consisted of 5 members initially and then reduced to 4 due to some
inconvenience with a member. This was the most culturally diversified group among all the
groups. The members are Antonio, Alex, Pengcheng Du and me. Tutor Sina was convinced
that it is better to have atleast two people from same nationality in one group but we stick
to our decision to form this group.
As the proceedings went further and we started to have group meetings i feel like we can do
a very good project as all the team members were creative and were coming up with good
ideas for the project. Specially Antonio and me came up with a lot of problems and tried to
find their solutions. But we both encouraged Alex and and Du to bring their ideas and
participate as much as they can.
We started with 4 ideas from each member of the group and then reduced it by using WCM
to select the best 4 out of those 16. Again with the best 4 ideas we finally reached our
product of T-shirt mate which was later changed to ITVEO.
As we started to find the solutions using process tree, design tree and TRIZ etc, all of the
members split the work and did at least one part of the divergent process. Our tutor, Sina
really helped in understanding of WCM and later the processes of divergent and
convergent. While the convergent process being the most difficult one, we spend a lot of
time doing that right including Pugh criteria and controlled convergence method. When
lectures did not help at all, book also had very specific information. We went to the tutor
and then brainstormed together to help it understand better. Previous report examples and
internet were also a great help.
The market part was also divided among the members equally. Further the feedback from
the tutor and other tutorial groups were also phenomenal during the tutorial sessions and
marking exercise. I would like to say that the material provided on this subject was not
sufficient and could have been improved for a better learning experience but hopefully
would be catered in the coming sessions.
We learned a lot from this subject at the areas which seemed weak and improve it, learned
a lot of good techniques and especially with the pitch now it has improved the skills.
Pengcheng Du 4980979 ENGG950 Innovation and Design
In this group, a lot something can be learned. Firstly, I learn about methods of team cooperation and
practice it. Although I have a lot of problems in myself, my team members help solve it. Secondly,
innovation and design have comprehended deeply. How to work out is my best knowledge.
Additional Alex Macharia and Antonio have a great contribution for the report. They hard work to
finish the work. They are great example to me. Final I had to do a review for myself. I just made a
little contribution for the report. But I learned a lot of things, including serious, rigorous and
cooperative, thanks to my classmates.

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