Nick Carneiro + Skyler Kanegi + Chang Liu + Kim Phung
Roden Scholars’ Case Study Competition + Spring 2010
OPERIT
Overview
• Chinese university student market growing
explosively
• Target market likes hanging out with friends, social
gaming
• Easy to reach on Renren, university social network
• Lubao = social gaming device
• Lean supply chain utilizes automated systems and
outsourcing
Overview
Product
Market
Operations
Finances
Social
OPERIT2
Overview (cont’d)
• Y1 profit of almost 17 million RMB
• Continuous 150 percent NPV growth
• Help over three million visually disabled Chinese
by Y3
Overview
Product
Market
Operations
Finances
Social
OPERIT3
Product Design
Nick Carneiro + Skyler Kanegi + Chang Liu + Kim Phung
Roden Scholars’ Case Study Competition + Spring 2010
OPERIT
Hardware
• GPS Chipset
• Enables location-based services
• ARM-based Atmel microprocessor
• Inexpensive
• Low power consumption
• GSM Module
• Provides internet connection to ATVI’s
cloudspace over GPRS
Overview
Product
Market
Operations
Finances
Social
OPERIT5
Product Specs
Overview
Product
Market
Operations
Finances
Social
OPERIT6
Software
• Lubao
• Symbian or Linux OS
• Open API for game developers
• Cloud Servers
• Google App Engine
• Python
• Coordinate game and location data transfers
between Renren and Lubao
Overview
Product
Market
Operations
Finances
Social
OPERIT7
Data Flow
Overview
Product
Market
Operations
Finances
Social
OPERIT8
Marketing Strategy
Nick Carneiro + Skyler Kanegi + Chang Liu + Kim Phung
Roden Scholars’ Case Study Competition + Spring 2010
OPERIT
Why China?
Overview
Product
Market
Operations
Finances
Social
OPERIT10
Segmentation
Fun-loving Fu (富)
Overview
Product
Market
Average Aiguo (爱国) Frugal Fang (芳)
Operations
Finances
Social
OPERIT11
Competitors
Competitor
Product?
Market? Threat?
GPS Chipset
Manufacturers
Yes
No
No
iPhone App
Developers
No
Yes
No
Social Gaming App
Developers
No
Yes
No
Overview
Product
Market
Operations
Finances
Social
OPERIT12
Projected Adoption Rate
Overview
Product
Market
Operations
Finances
Social
OPERIT13
Partnership with Renren
Overview
Product
Market
Operations
Finances
Social
OPERIT14
The Four Ps
Overview
Product
Market
Operations
Finances
Social
OPERIT15
Operating Model
Nick Carneiro + Skyler Kanegi + Chang Liu + Kim Phung
Roden Scholars’ Case Study Competition + Spring 2010
OPERIT
Supply Chain Process
Taiwanese Semiconductor
Manufacturing Company
Shengzhen Technology
Manufacturing
•
•
•
Manufactures GPS
chipsets
Greater protection of
IP
•
China Shipping
Container Lines
Hangzhou
Manufacturing
Dongguan Yuanchang
Mold and Plastic Co.
•
•
Manufactures
rubberized injected
plastic cases
Overview
Product
•
Market
Operations
Manufactures
Lubao
Low budget
production
Finances
Manufactures
Lubao
Low budget
production
Social
OPERIT17
Supply Chain Process (cont’d)
China Shipping
Container Lines
Overview
Product
DHL China
ATVI Storage Unit
Market
Operations
Finances
Social
OPERIT18
Supply Chain Process (continued)
Trade In
Refurbish and install Loadstone
Give to disabled
ATVI
Overview
Product
Market
Operations
Finances
Social
OPERIT19
Payment Process
Ship devices
Activate virtual goods
Order online
ATVI
Process payment
Overview
Product
Market
Operations
Finances
Social
OPERIT20
Long Term Plans
Feb 2010
• Negotiate partnership with Renren
Mar 2010
• Finish prototyping the device
Aug 2010
• Launch device and advertising campaign
Dec 2010
• Break-even achieved
Feb 2010
• Additional staff hiring
Sep 2011
• Achieve 500,000 unit benchmark
Jan 2012
• Start refurbish and rebuild program
Jun 2013
• Give 2,000,000 refurbished units.
Nov 2015
• Diversify technology and penetrate European market
Overview
Product
Market
Operations
Finances
Social
OPERIT21
Finances
Nick Carneiro + Skyler Kanegi + Chang Liu + Kim Phung
Roden Scholars’ Case Study Competition + Spring 2010
OPERIT
Revenue Streams
Overview
Product
Market
Operations
Finances
Social
OPERIT23
Cost Breakdown
Percentage of Costs
100%
90%
80%
70%
GPS for Visually Impaired
60%
Profit Share
50%
Outsourcing
40%
Operational
30%
Start-up
20%
10%
0%
1
2
3
4
5
Year
Overview
Product
Market
Operations
Finances
Social
OPERIT24
Income Statement
Overview
Product
Market
Operations
Finances
Social
OPERIT25
Cash Flow
NPV of 323 million
RMB in the fifth year
Overview
Product
Market
Operations
Finances
Social
OPERIT26
Social Impact
Nick Carneiro + Skyler Kanegi + Chang Liu + Kim Phung
Roden Scholars’ Case Study Competition + Spring 2010
OPERIT
Disabled in China
Overview
Product
Market
Operations
Finances
Social
OPERIT28
Social Impact
Refurbished Devices
Donations to Charities
• Personal navigation
devices
• Use Loadstone
• 700,000 by Y2
• 2,000,000 by Y3
• Himalayan Cataract
Project
• Puppies Behind Bars
• Discovery Eye Foundation
Overview
Product
Market
• 1,836,091 RMB in Y1
Operations
Finances
Social
OPERIT29