Smart Guide Connect 5 Future Melbourne 15/02/2011
//contents Executive Summary
01
Introduction
02
Response to the brief
03
Objectives & aims
04
Intellectual Property
05
Key Research
06
Gap (safety)
07
Survey results
08
Target Market
10
Competitor Analysis
12
Smart Guide
16
Main Design Considerations
17
Installation
19
Exploded View
20
Product Process
21
Discover Melbourne
22
Marketing Strategies
23
Gantt Chart
27
Cash Flow
28
Project Costing
30
Company Profile
38
General Terms of Business
40
Bibliography
42
“Connectivity is about access to opportunity� (Future Melbourne 2009).
//executive summary The Melbourne City Council introduced the Melbourne Bike Share scheme in late 2009 as part of the Council’s initiative for a Greener, Healthier, Safer and Sustainable mode of transport within the central business district. Since the scheme’s introduction its popularity has grown, however, the safety aspect of using bicycles in particular international users of the Melbourne Bike Share remains. 0.1 Safety In order to tackle the safety aspect and ensure the users experience is enjoyable it is proposed to introduce an interactive GPS with audio into the scheme. The device, known as Smart Guide, will be produced and maintained by Connect 5 and leased by Melbourne City Council. The GPS device will be built into the handlebars of the existing Melbourne Bike Share bicycles with audio coming through a Bluetooth headset. Users of the Melbourne Bike Share will have the option to use the bike with or without Smart Guide. A nominal fee and deposit will be charged for using the GPS device. 0.2 Material Features Sourcing of the components will be done within Victoria in line with the State Governments policy of maintaining and encouraging local manufacturing and innovation. Interactive GPS and commentary software will be developed specific to the Melbourne CBD and surrounding attractions. Smart Guide will also contain safety information conveyed both verbally and visually to inform users of the Australian cycling road rules. Smart Guide will also have the added safety feature of the GPS display screen and audio commentary only working when the bike is stationary and the navigational audio working only when the bike is in motion.
Above Melbourne information centre Federation Square 2011 Left Melbourne Bike Share bikes Federation Square 2011
0.3 Target Market Smart Gide has been designed specifically for the tourist market with an age demographic of 20-35 and the secondary market being citizens of Melbourne with a similar age demographic. The target audience’s interest is ensured with specialised features such as interactive tours on laneways, art, architecture, food and fitness trails where you can customise the route or specify your own destination. Smart Guide aims to increase the experience of Melbourne Bike Share user’s. It will allow them to explore Melbourne from a new perspective where they will be educated and inspired whilst travelling on a sustainable and safe mode of transport.
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//introduction 0.1 Our Mission “Connectivity is about access to opportunity” (Future Melbourne 2009). Future Melbourne has the objective that in 2020 bikes will “become the mode of choice for private transport trips in the municipality, including for work, school, business and recreation” (Future Melbourne 2009). For this aim to occur many factors and ideas have been considered, evaluated and implemented. Melbourne Bike Share is a concept that has made it to the production and implementation stage. The aim of the bicycle rental system is to make “cycling easy, free and available to anyone” (Future Melbourne 2009). There are currently 600 bicycles situated around Melbourne CBD across 50 bike stations. The bicycles are fun, efficient, healthy, socially stimulating and free when used for less than 30 minutes. However for those unfamiliar to Melbourne navigating around the city on a bike is a difficult task, it is not easy to read a map and streets signs while concentrating on the traffic and arrive at your destination feeling calm and inspired. We believe we can provide a service and a product that will make navigation easer, safer and informative for both residents of Melbourne and tourists. We aim to provide a two part service, one a product that will get users of the Melbourne Bike Share from point A to point B safely without getting lost and also provide a service if desired by users of the Melbourne Bike Share as a tool of exploring Melbourne through interactive maps, tours and informative dialog. Smart Guide aims to provide Melbourne Bike Share users the opportunity to be navigated around Melbourne and to have the opportunity to explore or rediscover Melbourne from a new perspective. Our mission is for Smart Guide and bikes to be the transport of choice in Melbourne by 2020. This is in keeping with Melbourne City Councils 2009 Future Melbourne 2020 policy statement. We believe by improving an existing service The Melbourne Bike Share through the implementation of the Smart Guide it will make it more educational, interactive and most importantly improve the bike user’s experience.
Above Melbourne’s Yarra River by night Image ID: 12857, 2011 source: stock xchange.com
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//response to the brief 0.1 Our Belief Melbourne is considered to be sophisticated and polished, edgy and rough, its physical and cultural landscape is shaped by a dynamic population, ever-desiring global culture which results in Australia’s most accessible multiculturalism. “Trams lumber back and forth on routes radiating out like spokes from central Melbourne, and cycling is a common way to get from A to Z.” (Lonely Planet 2011) Why not embrace Melbourne’s multicultural lifestyle by jumping on a blue bike and exploring Melbourne through the use of an interactive GPS system that will navigate and narrate your journey through the city, either as a local or an international traveller or visitor and discover something about Melbourne. The Smart Guide is an a multifaceted GPS that has been designed as part of the existing Melbourne Bike Share scheme which was an initiative introduced by the Melbourne City Council in 2010. It was introduced by the council to “build a safer, fairer and greener transport system” (Melbourne Bike Share 2010) for all Victorians and visitors. The council believes that bike sharing is more sustainable, healthy and a viable community based transport option. There are currently 600 bikes situated around the Melbourne CBD located at 50 bike stations. We believe the user friendly GPS enhances the current scheme and gives consumers options to explore in safety. However as stipulated by Melbourne Bike Share you must be at least 15 years of age and measure at least 1.25 meters in height to use the Melbourne Bike Share and in turn use the Smart Guide. Smart Guide is a product that will aim to provide a service to city workers, commuters, residents, students and visitors either interstate or international to inner Melbourne and in turn create a positive attitude to cycling. This navigational tool aims to take the stress out of cycling and navigating ones way around the city. Whilst at the same time be informative via the inbuilt commentary The objective of this project/product/service is to enhance the users experience in using the Melbourne Bike Share, whilst maintaining the desire to promote a healthy, sustainable and greener transport system. Coupled with this need are the additional benefits of providing an extra dimension to their experience of discovering the sights and learning about the city’s history, and architecture that it has to offer through the use of an audio GPS system.
Left Melbourne bike share bikes source: Connect 5
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//objectives & aims
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//intellectual property 0.1 Patents and Proprietary Issues Connect 5 have applied to trademark the Smart Guide logo to protect the ownership and visual identity of the product. As an established design practice Connect 5 are already a registered business through the office of Consumer Affairs. Due to the unique nature of the design, the Smart Guide GPS system has been patented and additional contractual precautions have been put in place with IP Australia so Connect 5 retains sole ownership of the product and use of the specific maps and commentary as they have been designed and developed entirely by individual team members. It is agreed that Connect 5 will lease the Smart Guide GPS to Melbourne Bike Share and Operators for the first 2 years of implementation before selling the product to its partner for a nominated price. 0.2 Management Compensation & Ownership For the foreseeable future the management team will receive equal profits within the business. Initially, a majority of profits received through the product will be either reinvested back into the business or given to Melbourne Bike Share until substantial profits are made. Minimal dividends will also be paid in the interim, where profits will be divided equally amongst the management team. At presented, no other parties have financially invested into the business.
Melbourne Bike Share bikes Federation Square 2011
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//Key research 0.1 Melbourne Bike Share and Smart Guide The Melbourne Bike Share was an initiative set up by the Department of Transport in December 2009. It aims to “provide a public bicycle system for workers, commuters, residents, students, and visitors to inner Melbourne” in the hope of building a “safer, fairer and greener transport system” (Melbourne Bike Share 2010). Currently there are 600 bikes situated around Melbourne CBD at 50 bike stations, and in the height of summer on average 500 bikes are hired a day amongst locals and tourists. This system has been designed to promote short trips in the Melbourne CBD which is highlighted in the affordability of the system. As an individual you can purchase a subscription for a year or choose from a daily or weekly pass. A yearly pass will cost you $50, a weekly $8 and a day pass $2.50, and for all passes the first 30 minutes of each trip is free. The Melbourne Bike Share has been implemented to assist the Victorian Government’s goal for a sustainable transport alternative for inner Melbourne coupled with the aim to promote healthy lifestyles. This scheme already has the backing from four prominent sponsors Vic Roads, TAC Bicycle Victoria and 7 Eleven who believe that the innovation will increase cycling throughout Melbourne CBD and promote good health and sustainable living. We at Connect 5 believe that we can work in conjunction with Melbourne Bike Share to promote a healthy, sustainable and viable transport option that is safe, fun and improves the already existing service. We believe the Smart Guide will increase the use of the Melbourne Bike Share and encourage more tourists to cycle through Melbourne discovering the hot spots, the multiculturalism and the best Melbourne has to offer. The interactive GPS will allow visitors to select their own destination or use one of our carefully devised bike tours. Currently locals are the most frequent users of the Melbourne Bike Share during the working week, using them to get to and from work; however, Melbourne Bike Share thrives on the tourist population of a weekend. We believe that Smart Guide will also encourage the locals to use the bikes on weekends for the purpose of exercise given the option of pre-programmed fitness trails. The Melbourne Bike Share has been a creative innovation for Melbourne and we hope through the implementation of Smart Guide it will only improve the system and encourage locals and tourists to discover Melbourne from a greener and safer perspective.
Left Melbourne bicycle user source: Connect 5
Left Melbourne source: Connect 5
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//Gap (safety) 0.1 The Issue of Cyclists Safety Cyclist’s safety has been one of the major issues for Future Melbourne 2020 and it has also been a talking point for the Federal Government. The number of cyclists on “Melbourne’s roads has soared by up to 50 per cent during peak hour in the past year” (Levy, 2010) and initial figures from Bicycle Victoria 2010 super Tuesday count revelled that 1795 cyclists passed through the intersection of Swanston and Flinders street in the city between 7am and 9am this was a 25 per cent increase from 2009. Whith cycling being promoted as a healthy, environmentally friendly mode of transport, it unfortunately led to an increase in cycling accidents. Currently motor vehicle traffic has been explained to be one of the biggest barriers for people taking up cycling “safety concerns were consistently found to be among the most significant barriers preventing people from cycling. It was even found to be a concern for those that cycle regularly.” (Bauman et al. 2008) This concern by the public is unfortunately valid with injuries to cyclists doubling in eight years with cyclists 34 times more likely than an occupant of a car to be seriously injured. Journals of the Australian College of Road Safety found that serious cycling injuries reported by police had increased by 109 per cent from 2000 to 2008 and cyclists are also 4 and ½ times more likely than a car occupant to die in an accident. It has however been highlighted by Bicycle Victoria spokesman Garry Brennan that many of the cycling accidents “don’t involve cars, people might just fall off” (Brennan 2010). This highlights the issue that bike safety and awareness needs to be improved and addressed. Through the addition of the Smart Guide on the current Melbourne Bike Share scheme we believe it will take the burden of safely navigating ones way around the city away and allow the cyclists to focus on the road and traffic. This initiative will also assist tourists in adapting to our road conditions and be a safer alternative to the traditional paper maps.
Above Cyclist in city Image ID: 16279, 2011 source: stock xchange.com
Left Cyclist street signs Image ID: 29563, 2011 source: stock xchange.com
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//survey results At Connect 5 we believed that user centred design is an important aspect of creating a sustainable product. Therefore it was an important business step to properly understand who would be Smart Guide’s Target Market. The independent survey was distributed amongst Melbourne CBD with our team targeting prime Melbourne ‘Hot Spots’ that included Federation Square, South Bank, Birrarung Marr and St Kilda Road. Through our finding we were able to identify who our primary and secondary market was and from this modify the Smart Guide towards those markets.
Would the People Surveyed Use an Interactive GPS on a Bike? The Reasons the Surveyed People Were in the City What Surveyors See as being the Number One Problem Faced By Cyclists in the City
30% Navigation
40%
10%
safety
trams
20% vehicles
0%
60%
40%
50%
pedestrians
yes
no
TOURIST
30% WORK
10% shopping
10% other
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The Gender of those Surveyed
Do the People Surveyed Cycle? The Age of those Surveyed
30%
50%
50%
10%
40%
30%
yes
no
16 - 18 yrs
19 - 25 yrs
25 - 35 yrs
10% 36 - 45 yrs
0% 46 - 55 yrs
10%
70%
30%
56 + yrs
male
Female
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//target market Melbourne has a booming tourist market making on average an 82 million dollar turnover a year (Enterprise Melbourne). According to Tourism Research Australia 208,000 New Zealanders and 178,000 Englishman visited Melbourne between March 2009 and March 2010 with the most common activities being; eating out 73%, sightseeing 33% and shopping 6%. Enterprise Melbourne stated that “Melbourne attracts a significant number of backpackers who tend to stay longer and proportionately spend more than those visitors who stay in more upmarket accommodation but spend less time in Melbourne� making the backpackers a lucrative market that needs to be nurtured and focused on. Through our independent research, which included a comprehensive survey of Melbourne Bike Share users and city cyclists, we concluded that our primary market is tourists of Melbourne within the age demographic of 20-35. Our secondary market is residents of Melbourne also aged 20-35.
Above Melbourne bike share user source: Connect 5
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0.1 Tourist (Primary) Lukas is a 23 year old Englishman who is currently backpacking around Australia for 6 months. He has been in Melbourne for the past 2 weeks and loves Melbourne’s culture, art scene and has found the Melbourne Bike Share a useful mode of transport that is environmentally friendly and fun. However he has found it difficult to navigate his way around Melbourne while adjusting to the change in traffic conditions, the road rules and reaching his destination safely. Lukas also does not want to have to join an organised tour as he would prefer to have the freedom to independently explore Melbourne and enjoy discovering its secrets at his own pace.
Above Male tourist source: Connect 5
0.2 Local (Secondary) Lilly is a Melbourne girl, she has currently moved into an apartment in the CBD to make it easier for her get to work. Lilly enjoys cycling on the weekend as she finds it a great way to relax, unwind and become reinspired from a busy working week as a product designer. Lilly has recently discovered the Melbourne Bike Share and has been utilising the bikes as a mode of transport and exercise as she does regular trips into St Kilda on the weekend. Lilly finds the bike scheme brings her closer to her environment and gives her a sense of connection with her city of birth. However she is finding it difficult to navigate her way around the CBD safely and would love to be able to discover some secret Melbourne ‘Hot Spots’ and the history of the city itself.
Above Woman sitting at home source: Connect 5
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//competitor analysis 0.1 Our Competitors and Uniqueness There are currently a limited number of products that provide customizable GPS navigation for bicycles. The Bryton GPS and B-Cycle both provide free maps, recordable tracking and wireless connectivity with a specific emphasis on health and fitness. However, both systems lack an easy-to-use interface with the Bryton GPS giving limited data and unreliable maps and the B-Cycle having no screen display. There are also a number of key competitors within the tourism sector, namely bicycle and walking tours in Melbourne. The tours generally provide organsied guides of varying distances, sights and ability. While the tours are a great way to meet others and are rather educational they are constrained by time, money and a pre-determined route. The Smart Guide, on the other hand, is a compact interactive tool that utilises an existing scheme that has already proven to be both economically and environmentally sustainable. Unlike other GPS devices, the Smart Guide provides information specific to Melbourne such as a pictorial and audio commentary on key landmarks, destinations, people and events. With customizable data one can choose their own route, record a time trial or choose from any of the programmed tours. What sets the Smart Guide apart from its competitors most in terms of uniqueness is its safety features and user-friendly interface. The maps are easy to read, give clear directions, show essential details such as street names, businesses, and transport among other references only when the bike is stationary. The Smart Guide has already put in place strategies to overcome its potential issues of crime, safety and maintenance, ensuring a competitive advantage over similar products and services.
Above Melbourne Bike Share bike 2011 Source - Connect 5
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0.2 Direct competitor analysis Bryton Rider GPS
Strengths
Weaknesses
• • • • • • • • • •
Training software included Ride data including heart rate monitor Backlit screen- controllable Weather-proof, durable Customizable Wireless connectivity Accurate and doesn’t lag Free maps Records rides to improve performance Available Australia wide
• • • • •
Expensive $399-499 Bulky Maps not always up-to-date Poor software-installation issues Limit data analysis/adjustment
Account verification drop off system- secure and easy GPS route tracking Affordable Adaptable design Review ride online
• •
Inbuilt No screen display
• • • • •
walking tours only predetermined route/destinations no visuals brief history non-interactive
B-Cycle • • • • •
Tourism Victoria & City of Melbourne
• • • • • •
Free audio download & map Available on laptop, pda, iPod or iPhone 6 tours Varying length duration Directs route educational
Above Bike and pedestrian shared lane 2011 Source - Connect 5
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0.3 Indirect competitor analysis Bonza Bike Tours
Strengths
Weaknesses
• • • • •
• • • •
Time and destination constraints Group tours only Bookings required Packages/specials currently unavailable
• • • • •
Outdated bikes Time, destination constraints Group tours only Lack of Comfort Bookings required
• • • • •
Hard to read, small print Hard to follow-require a pen/highlighter No historical/cultural/social information English only Out-dated information/map
Organised & custom tours Rentals Varying distances and attractions Melbourne and Sydney based Great way to meet people
Josh Henry’s bike tours
• • • • •
Major Melbourne city attractions History – educational Personal guide Vintage bikes Experienced team
Melway Travel Smart map • • • • • • •
Detailed map with standard Melbourne Melway refer ences Pocket size Identifies cycling routes/lanes Lists contact information on bike shops and cycling groups Bus and tram routes Travelling and ticketing information Cycling safety and road rules
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0.4 Smart Guide GPS Strenghts • Compact design • Utilises existing rental bike scheme • Environmentally friendly • Markets businesses & landmarks • Educational • Available in various languages • Inclusive of cultures • Good for your health & wellbeing Opportunities • Group tours • Fitness circuits • Time-trials • Personalised commentary • On-line training tutorials • Market interstate/overseas • Business advertisements Weaknesses • High maintenance • Costly installation • Regular software/map updates • Risk of technical malfunctions • Risk of theft and damages • Requires weather-proofing • Complex software Threats • Theft and damages • Vandalism • Safety issues- visual & audio Distraction • Software failure • Non-use due to helmet regulations • Bicycle tours start using GPS • Bike hire fees rise
0.5 Strategies to overcome Weaknesses and Threats
Crime • • • • • • •
Attachable design Lockup storage Tracking device if stolen-number activated Password/deposit required when renting Deposit return On-road lock-up box Terms and agreement procedure
Safety • • • •
Warning screen display when in motion Adjustable, vertical positioning Durable, illuminated screen casing User-friendly interface
Maintenance • • • • •
Materials-easy to clean Existing repair staff Anti-graffiti finishes/materials Patriotic images to discourage graffiti Software and installation training/tutorials
The smart guide is an accessible and interactive device that nurtures learning, good health and fosters a safe and eco-friendly relationship with the environment. It stands apart from its competitors in that it is compact, easy to use and above all unique to Melbourne.
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//Smart Guide 0.1 About Smart Guide The Smart Guide is a compact, user-friendly device installed in the handlebars of Melbourne’s blue bikes as part of the Future Melbourne initiative to provide greener, safer and more efficient public transport. The G.P.S unit comes with programmed up-todate maps of Melbourne’s CBD giving detailed references of main landmarks, attractions, businesses, roads, parkland and much more. Using a touch screen interface one can select from a range of attractions, destinations and city tours making it ideal for tourists and international students. All pre determined routes can be customized according to time, ability and distance and it comes with wireless commentary and engaing visuals to give you all the information you need to know about Melbourne. Left Melbourne Bike Share bike fitted with Smart Guide G.P.S unit 2011
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// Main Design considerations Product description
Safety
Our product is a GPS navigation system for use in conjunction with Melbourne Bike Share. The system will be mounted onto the existing blue bikes permanently and will provide audio and visual directions to user-specified locations and along pre-programmed tourist routes. Audio directions will be provided through the use of a Bluetooth headset which will connect to the GPS system wirelessly.
As the bikes are used in the busy roads of the inner city, safety is an important consideration and we must ensure the devices to not provide a distraction while riding and have a minimal effect on hearing. To ensure customer safety the device uses stop-motion detection by where the screen visuals cut out whilst in motion to deter distractions and subsequent fatalities from occurring. The headphones are subject to a volume limit so they should not restrict hearing and will ensure users stay wary of surrounding traffic. The system is also free from sharp edges to prevent injury.
How it works The GPS will offer a range of features to cater for both local and international users. GPS navigation technology will be used to track users’ positions and provide directions. A range of languages will be available for both text and audio directions. Users will be able to either select their own destination or from one of the various pre-determined routes. When the bike is stationary visual information will be displayed on screen to confirm the direction anticipated and provide a pictorial history if requested. Lifespan, maintenance, installation As the system and equipment is owned by Melbourne Bike Share and the equipment leased to its users, longevity is desirable to reduce repair and replacement costs. Maintenance and installation will be conducted at the existing Melbourne Bike Share service centres. It is mandatory for users to report any damages or defects with the system upon returning the bike. The lifespan of each unit is 8 years, though some parts will need maintenance/ replacement earlier.
Performance, durability As the devices will be used and stored outdoors they need to be manufactured from durable, weather proof and theft deterrent materials. Aluminium, Stainless Steel and ABS will be used to prevent the need for repairs and to reduce the risk of theft. All screws will be hidden and inaccessible and electronic components will be secured. They will be designed to have a long battery life, adequate CPU performance and a screen that is visible in bright sunlight. Sustainability, recycling To maximise recyclability and reduce the carbon footprint the devices will be made from recyclable materials. As the system is designed for longevity recycling is not a large issue, though the main materials used (Aluminium, Stainless Steel, ABS) are recyclable. If some components are damaged and need replacing, any undamaged components will be re-used to save resources and money. All electronic components will be WEEE and RoHS compliant.
Above Smart Guide G.P.S unit interface 2011
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Secondary Design Considerations Context/ environment for use The system will be mounted on the Melbourne Bike Share bicycles, which are stored and used outdoors in the city. Therefore the system will be designed to withstand Melbourne’s inclement weather conditions and should also be designed to deter theft and survive rough usage. Ergonomics The GPS screen is rotatable to cater for various heights and to reduce glare/reflected light when needed. It will be located within arm’s reach directly in front of the user to reduce any strain from use. Aesthetics The GPS device will have similar aesthetics to the Melbourne Bike Share bikes because they will be mounted onto the bikes. Therefore the system will have a simple shape and will be coloured blue or black. Cost The estimated cost per unit is $300-$500 including parts and installation. Parts include GPS touch screen, GPS housing, Bluetooth headphones, mounting tabs and plastic casing. Materials, finishes The system will have a similar finish to the Melbourne Bike Share bikes which includes a glossy electric blue paint and glossy injection moulded plastic. Assembly Assembly of the GPS components and casing will be automated and installation of the system will be performed at Melbourne Bike Share service centres by qualified technicians. Market considerations
Left Melbourne Bike Share bike fitted with Smart Guide G.P.S unit 2011
Our product will be designed to encourage use of sustainable transport for a young, active and technology-savvy market. Manufacturing processes GPS and headphone components will be purchased off-the-shelf, the GPS casing will be extruded stamped and the plastic casing will be injection moulded.
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//installation Installation of the GPS units involves dismantling the existing casing and retrofitting the GPS unit using casing re-designed to support the units. The units will be installed at Melbourne Bike Share service centres and parts will be manufactured and partly assembled offsite. Step 1 The existing protective casing is removed from the bike and discarded; screws and washers are kept for later use. Step 2 Handlebar is removed to expose wiring holes and wiring for the GPS units is installed and soldered. Handlebar is then re-fitted. Step 3 Casing /GPS assembly is fitted to the handlebars using screws and washers saved previously and wiring is connected to the GPS unit. Step 4 Testing is performed and upon successful results the unit is then transported to a bike station for use.
Images Melbourne bike share bikes 2011
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// exploded view Part Name
Qty required
Part Number
Front Left Casing Front Right Casing Rear Left Casing Rear Right Casing 1’ Screw 4’ Screw End Cap Bell Brake Lever Gear Ring Gear Display Boss Tube GPS Casing Plate Glass Screen PCB Battery Button Grip
1 1 1 1 4 2 2 1 2 1 1 1 1 1 2 1 1 1 1 1 2
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Left Smart Guide G.P.S unit pulled apart 2011
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// product process
•
Type in the 5-digit GPS code.
0.1 How does the Smart Guide GPS system work?
•
Follow the instructions on screen to activate the Blue tooth technology.
Stage 1:
Purchasing and renting the system
Select your mode of travel eg. Tourist route.
•
If you don’t already have a helmet purchase one from a nominated Seven Eleven store or any good bicycle store.
•
Use your credit card to rent a Bluetooth headset at any of the nominated Seven Eleven stores
•
•
After purchasing a subscription or pass to use the blue bikes, purchase an additional 2-Hour or daily pass to rent a Smart Guide GPS from any bike station.
•
Swipe your credit card at the kiosk to get two 5-digit codes, one to activate the bike and one to activate the GPS unit. Include icon/image of coins/notes
2hr card
12345
12345
Stage 2:
Acquiring and using the system
•
Choose a bike to unlock from the station and adjust the tourist seat if needed.
•
12345
local
•
2hr card
12345
Follow the audio and visual instructions when stationary to reach your destination safely. Include icon/image of power button/3 digit button
12345
12345
tourist local
Stage 3:
Returning and reporting the system
•
Return the bike at the end of your journey to any station and lock it back into the dock.
•
Return your Bluetooth headset and/or helmet with the original receipt to receive a combined $7 money back guarantee.
•
Report any damages or defects to the bike, helmet, head set and/or GPS if necessary. Include icon/image of damaged goods
Type in the 5-digit code at the bike dock.
•
Wait for the green light to flash before removing your chosen bike from the selected dock.
•
Mount bike, switch the GPS power button on and select your spoken language.
$7
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//discover melbourne Hot Spots 0.1 Food If food is the way to your heart take a tour with Smart Guide and burn off some of those extra kilos you are bound to gain through Melbourne’s love affair with food. Cycle down Hardware Lane and be tempted by the aromas escaping from the array of coffee and restaurants or go toward docklands and have a harbor view indulging in some of the cultural cousins that are on offer. Or if Asian is your flavour we will direct you to the iconic China Town. We will also take you past the Victoria Market which is an important stop for fresh food and a spot a cheeky shopping. Let Smart Guide introduce you to the array of food on offer in Melbourne 0.2 Architecture Take a cycle through Melbourne and discover some of Melbourne’s stunning architecture. We will direct you through the modern and traditional and explain how some of the buildings came about. You will discover Federation Square from a new perspective, learn about Melbourne endeavours to become an Eco-City with the innovative City Council Building 2 and see the beauty of the State Library. Let Smart Guild lead you through Melbourne’s architectural secrets 0.3 Art Take an inspirational bike tour through Melbourne’s iconic artistic landmarks. Explore the elegance of the National Gallery of Victoria, and wander through the Ian Potter Galley where you will discover iconic Melbourne artwork, cycle down Flinders Lane where you will come across independent art galleries. If art is one of your passions Smart Guide will lead you through Melbourne’s art scene 0.4 Laneways Take a tour among Melbourne’s exciting laneways. You will discover some of Melbourne hidden secrets from exotic food, to crafted clothing or be enthralled in Melbourne’s Jazz scene whilst continually being inspired by Melbourne’s street art. Let Smart Guide lead you through Melbourne’s imagination. (idea for map route: Flinders Lane, Manchester Lane, Cocker Lane, Elizabeth Street Block Place, Little Collins, Union Lane, Bourke Street, ACDC Lane, Market Lane)
Above Flinder street Station Image ID: 11549, 2011 source: stock xchange.com
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//marketing strategies 0.1 Marketing strategy The ‘Smart Guide’ will be marketed as a compact, innovative and userfriendly navigational tool that promotes good health as well as a safe, convenient and ‘green’ means of transport. To achieve this, marketing for ‘Smart Guide’ will be carried out in two ways; Internal Promotions: Print advertisements on existing blue bikes, blue bike stations and participating stores such as Seven Eleven, RACV and Vic Roads. External Promotions: Print and digital media within the vicinity of blue bike stations including posters, flyers and brochures on display at visitor centres, bus and tram stops, bike stores and other key tourists centres.
Below Smart guide brochure source: Connect 5
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0.2 Sales Tactics Smart Guide is directed primarily at tourists and local residents of Melbourne aged 18-35 due to their enthusiasm for technology, cycling and socializing. Our target audiences lead a fast-paced lifestyle that prioritizes fitness, affordable and convenient transport and Melbourne’s nightlife, food and shopping hotspots. Hence, our strategy to place advertising close to major transport, tourism and retail centres. Potential customers will interact with the advertising via observation and word of mouth (seed/viral marketing) and loyalty will be attained through membership incentives. While Connect 5 is responsible for the design and production of all print media, Melbourne Bike Share will be accountable for the distribution and manufacture as well as the maintenance of a sales quota. Due to this shared system, a sales commission of 60% will be awarded to the operators of Melbourne Bike Share.
Above Metcard advertising source: Connect 5 Above Poster advertising source: Connect 5
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0.3 Implementation; time and costing Year 1 (June-August)
• • •
Posters at nominated blue bike stations Convoy of blue bikes displaying Smart Guide product Bike Share staff distributing brochures and flyers
Year 1 continued (September –December) • Promotional posters/flyers and brochures placed avail able from participating organisations eg. Seven Eleven • Tourist Information Centres and inner-city bike stores will contain promotional advertising • Promotional advertising on Metcards Year 2 (January – March) •
Advertising on Melbourne Bike Share website, Facebook and other social media
Year 2 (April-May) • •
Press releases in publications such as ‘MX’, Melways and Tourism Victoria Online blog pages and reviews
Left Website advertising source: Connect 5
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0.4 Multimedia Marketing In 2012 the Smart Guide will be marketed on the internet, taking advantage of social networking sites, YouTube, That’s Melbourne and Tourism Victoria. Connect 5 will implement a multimedia marketing scheme for theses internet sites that will be target towards our primary and secondary markets. The short clip will be a fresh, fun and highlight the advantages of Smart Gide and in turn promote Melbourne Bike Share.
//smart guide commercial
Right Smart Guide motion graphics commercial source: Connect 5
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//gantt chart Connect 5 2011
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//cash flow
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//project costing
Revenue from Smart Guide
0.1 Future Melbourne Payment The budget of $485,000 is provided by Future Melbourne and will be given to Connect 5 in 4 stages culminating in year 1. It is anticipated that as the cost of the design, advertising and manufacturing increases the progress payments will be paid accordingly. 0.2 Revenue from Blue Bikes There are approximately 12 bikes in every blue bike station, it is expected that 2 bikes from every station will be fitted as for trail purpose. Once the GPS system gets good feedback from the public, more GPS will be fitted into more bikes. Below are the calculations of total revenue based on the existing daily rental scheme: Eg. $5(price hire hour)*31(days)*5(rental hours per day)*35(bikes rent out) = $27,125 With at least 2 GPS fitted into 2 bikes in every station at the beginning, the number of GPS installed to bikes is anticipated to reach 100 by January in year 2. Through our research, between January to March consists many major event and public holiday in Melbourne, city’s traffic is expected to be jammed. Therefore, people are likely to choose alternative traffic option that will help them to move faster, and “Blue Bikes” is their option. Additional GPS will be installed to more bikes during this peak time for user to experience the advantage of this system that will bring to them.
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0.3 Advertising Revenue:
0.5 Revolution office rental
Advertising will be available through our GPS system. Any business around city is welcome to post their advertisement in our GPS. Advertising options including; GPS startup screen, main menu background and GPS off screen. More advertising area will be built in the future. Since the project is anticipated to begin in Year 2 (2012 June), the advertising charge period for parties who wish to advertise their business on our GPS device will be done every 6 months (from Jul-Dec 2012). Basis payment will be received from per ad; $1200 for 6 months and $2400 for 12 months.
There is no need to rent an office in addition to the Connect 5 studio due to the partnership with Melbourne Bike Share. Moreover, maintenance and manufacture will be conducted off-site and controlled by Melbourne Bike Share and the Victorian Government.
Business advertisment on Smart Guide revenue
0.6 Total project scope The team at Connect 5 is responsible for the design and visual communication of the product including software development, visual renders and 3D models, market research, advertising, financial management as well as the sourcing of materials and consultants. The designer will charge at an agreed hourly rate as summarised below:
Total costings for project scope
0.4 Profit receive for each company The profit receive from the project will split into two companies; Future Melbourne, Melbourne Bike Share (MBS). The reason for that is because Future Melbourne and MBS contributed money and materials. Connect 5 is a firm that generates the idea for the project. Hence Connect 5 will be receiving designing cost and idea cost as for the firm’s profit. 0.7 Total Client Negotiations Two designers are required to work at this stage; one designer is to focusing on design refinement, resources and costing, the second designer is to focusing on drawing up legal documentation and a lease agreement. Design fee charge as follows:
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0.8 Advertisement design cost:
Advertising design cost for the distribution of brochures and prototype
Design cost of creating A3 and A4 poster, and also including the design of the advertising cost in Metcard.
Advertisment design
Advertising design including the prototype
Advertisment design cost
design cost of website
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0.9 Total Project Initiation Cost
Costing for total client negotiations
Total Phase 1 Costing Material Sourcing Costing of materials are required to manufacture the Smart Guide GPS is as follows: Software development Two designers are required for coding the software of the GPS. The cost of the software development fee is included the installation process into GPS device. Initial user trial Phase 3 Costing
Costings for material sourcing
Advertisement Design: Convoy of Melbourne Bike Share displaying Smart Guide Product There will be 4 Convoys and 3 bikes per team and 12 bikes in total. Also, 12 employees are required from July-September. Eg. $12(per hour)*12(employee)*4(hours)=576 Distributing Brochures and flyers Hire people to distribute brochures in key areas of the CBD. Advertisement Design Including the Prototype Printing poster cost
Costing for initial trials
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Costings for phase One - Design detailing
1.0Multimedia advertising cost: Facebook advertising Facebook advertising will be used to promote Smart Guide. A group account including Melbourne Bike Share rental information will be created before formal advertising online. The advertising fee for a Facebook page is $50 for 3 months.
Costings for software development
YouTube advertising cost YouTube advertising should also be used to promote Smart Guide. Because our target audiences are tourists and young people, they are mostly interact with web based media. Therefore, advertising via the internet will be the fastest and cheapest way to inform our consumers. This will incur a charge of $10 for 1000 CPM (cost-per impression). Online blog pages advertising (Bdta blog) Design cost of website (Facebook and Blog) advertising and YouTube advertising: Publications in Melways and Tourism Victoria Full page display advertisement is one transaction payment. It is to be paid for the 2011 Melways
Costings for total project initiation
Bus advertising cost (all routes towards city) Advertising on buses could attract pedestrian and drivers attention in order to tell the public that there is a new traffic option available in the city. The advertising period for the bus exterior will be four months and 6 months for the interior. Train railway billboard cost Large posters can also be displayed on railway billboards. Trains are one of the most popular modes of transport in Melbourne. Potential customers will interact with the advertising via observation whilst waiting for a train. The billboard charge is $10,000 per week per station. Hence 2 stations (Flinders Street and Melbourne Central) for 4 months (18 weeks) should be effective.
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Youtube advertising costs
Distribution od brochures costs
Multimedia advertising costs
Promotional metcard advertising
Online blog pages - advertising
Promotional posters and brochures
1.1 Advertisement design cost of distributing brochures and flyers and advertisement design including the prototype: Promotional posters/flyers and brochures Two kinds of posters will need to design and print (A4 & A3). Promotional advertising on Metcards Smart Guide brand to be displayed on a range of Metcards 5-7 times per year
Costings for train railway billboards
Bus advertising costs
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1.2 Design cost
1.3 Phase 4
Design cost for designing full page advertising on Melway, poster on bus and train railway billboard.
Sourcing Manufactures cost Installation labor cost:
Publications on melways and tourism Victoria
Design costs for melways, bus and train billboards and brochure design
No. of hr (normal): 8hr * 5days * 4weeks = 160 hr No. of hr (over): at least 40% over normal working time: 160hr * 40% = 64 hr Eg. Total manufacturing cost (normal) =30 * 17 * 160 = $81,600 Total manufacturing cost (over) = 30*30*(160*40%) = $57,600 Total installation labour cost=84,600+57,600=139,200 High cost involved in manufacturing the GPS and GPS fitting to the bike. Due to high cost involved, GPS will be manufacture according to the revenue report.
Phase 4 - costings for the manufacturing of Smart Guide
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1.4 Phase 5
1.6 Profit & Loss statement
Product handover costing Implementation of marketing: Cash flow statement Although, there will be lots of costs for the first four years, revenue is anticipated to change in the fifth year.
The statement shows the surplus or deficit for each year up to year 3. It is showing from the budget of this statement, advertising is the key to let everyone know blue bike, hence, it should earn profit from year 3.
Costings for Phase 5 - Product testing in field
1.5 Benefits Realisation 1 staff is doing Market Research, and 1 staff doing supply or demand analysis and final costs benefits analysis.
Benifits realisation stages
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//Company profile 0.1 Connect 5 Connect 5 is a multi-disciplinary design practice structured around the disciplines of Interior Design, Product Design Engineering, Multi-Media and Accounting. The team at Connect five is made up of 5 spirited individuals who each share the desire to create innovative and sustainable design solutions that nurture creativity and are informed by science and realistic financial planning. Design solutions are achieved through a shared exploration of the brief, thoughtful collaboration, skilldriven investigation and communication. We aim to produce realistic and unique design outcomes that are concerned much less with trends and more with the science of the human experience. Our clients remain engaged during the entire journey of the project to help exceed expectations and deliver designs that offer timeless value. In short, we are a diversity of minds combining to provide practical and valuable design solutions through innovation. 0.2 Our thinking Connect 5 believe that design has the ability to do more than satisfy basic human needs. We believe good design can influence attitudes, behaviour and changing social and technological climate. That is why we are dedicated to providing innovative design solutions that are customer-focused and sustainable both financially and environmentally. We are a team who strives for design excellence and quality and take pride in our fresh thinking and realistic design solutions. 0.3 Our team
Olivia Kurec Marketing Strategist and Process Planner Olivia is also in her third year of Interior Design at Swinburne. As the Marketing Strategist and Process Planner of Connect 5 Olivia has been able to lay bare her flare for investigative research and planning. In her role as Process Planner Olivia has demonstrated her ability to control discussions, time as well as energizing the team and keeping them focused. Olivia’s enthusiasm for innovative design was utilised in the design resolution of the Smart Guide, and her knowledge in the areas of psychographics and customer trends enabled her to push the competitive advantages of the Smart Guide over existing competitors. Olivia’s recent acceptance into the Swinburne Industry Based Learning program has been a testament to her outstanding team building skills and mature work ethic.
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Daniel Naturani Director of Connect 5 and Product Design Engineer Daniel is currently completing a Bachelor of Engineering (Product Design) at Swinburne University. As a third year student Daniel has a thorough working knowledge of product design, with a particular interest in functionality and usability. Daniel has utilised his skills in AutoCAD, Solid Works and 3ds Max for the visual communication of the Smart Guide GPS unit, giving a particular focus on aspects of safety and ergonomics. As team leader, Daniel has also been able to demonstrate his managerial and organisational skills developed through part-time work where his experience in sales and customer service has enabled him to drive the user-friendly and innovative nature of the product. Daniel also has international experience having travelled to Germany and Switzerland.
Kane Rowlingson Consumer Analyst and Visual Communication Designer Kane has an Advanced Diploma in Multimedia (RMIT) and is currently completing his bachelor of Design (Digital Media) Degree at Swinburne. Kane has excellent computer-based skills, being proficient in a variety of design software with extensive knowledge in animation, film and interface, game and web design Kane has been able to maximize his talents in the construction and aesthetic outcomes of the Smart Guide. Having travelled to Bali and Nepal, Kane has provided Connect 5 with a worldly perspective and fresh thinking. He supports tourism in Australia as a means to enrich our own cultural identity and sees the Smart Guide as a facilitator of positive cultural and social development, making him appropriate for the role of Consumer Analyst.
Alicen Coddington
Si Man Mou
Human Resource Manager and Documenter Alicen is completing a Bachelor of Design (Interior Design) at Swinburne University. In her role as documenter, Alicen was in control of recording and distributing the minutes of meetings as well as generating ideas and setting regular project objectives. Alicen has travelled vastly throughout Asia and parts of Europe including Cambodia, Vietnam and Fiji. Having worked as a Personal Assistant for a Melbourne-based Interior Design practice for the past 3 years, Alicen has developed exceptional organisational and time-management skills. Not only does this make her fitting for the role of Documenter and HR Manager but it gives her the opportunity to model her mature work ethic among her peers.
Financial Resource Manager and Accountant Sharon is an international student from China and is currently undertaking a Bachelor of Business (Accounting) at Swinburne University. Sharon enjoys working with the team to meet shared design solutions and aims for business growth and excellence through realistic financial planning. Sharon’s knowledge in finance has been invaluable to Connect 5, providing the team with accurate costing, budget estimates, profit and loss margins and informed consultation for future business growth.
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0.1 General Working Agreement The undersigned reader acknowledges that a signed copy of this paper constitutes a working agreement between our firms. All projects and services Connect 5 is contracted to produce will be subject to the general provisions outlined in this agreement. The validity and enforceability of this agreement is based on the laws of the State of Victoria and will form the basis of our entire working relationship and shall not be modified or altered in any respect except by mutual written accord. The information provided by Connect 5 in this business proposal is confidential; therefore the reader agrees not to disclose any information without the express written permission of OLIVIA KUREC, ALICEN CODDINGTON, KANE ROWLINGSON, DANIEL NATURANI AND SI MAN MOU. It is acknowledged by reader that information included in this business plan is in all respects confidential in nature, other than information which is in the public domain. Disclosure of any confidential information may cause serious harm or damage to Smart Guide and its owners, Connect 5.
//general terms of business
•
Confidentiality and Confirmation of Agreement
Date: ___________________ In connection with the disclosure by Connect 5 (owner) to Future Melbourne (recipient) of certain information relating to the Smart Guide GPS unit the Recipient understands and hereby agrees that any and all such Confidential Information provided to the Recipient by the Owner is confidential and proprietary to the Owner. Accordingly and in consideration of the Owner’s agreement to provide the Recipient with Confidential Information, the Recipient hereby represents, warrants, covenants, and agrees as follows: 1(A). The Recipient shall receive, hold, and maintain in secrecy and keep confidential all Information using the same degree of care the Recipient would use to keep classified its own confidential information. The Recipient shall not, directly or indirectly, use, copy, disseminate or otherwise disclose any Confidential Information, other than as provided in Section 1(B) below. 1(B) The Recipient shall limit disclosure or dissemination of Confidential Information to those individuals under its control or supervision (collectively, “Related Persons”) who reasonably require such Confidential Information. The Recipient shall advise such individuals of the classified nature of the Confidential Information and of the express obligations of the Recipient and its Related Persons to treat the Confidential Information as private as here in provided. Confidential Information does not include information which is in the public domain at the time of disclosure. 2. The Recipient agrees that it shall, at the request of the Owner, promptly return to the Owner all Confidential Information, including any and all complete and partial copies thereof, in its possession or control, however maintained, including, without limitation, in note, memorandum, print, letter, report, or electronic form. 3. The obligation of the Recipient to keep classified all Confidential Information hereunder shall survive any expiration, termination, or cancellation of this Agreement, and shall remain in full force and effect. ACCEPTED AND AGREED TO AS OF THE DATE FIRST WRITTEN ABOVE: Owner: ______________________________ Recipient: ____________________________ [Print full legal name of owner] [Print full legal name of recipient] Signed: ______________________________
Signed: ______________________________
Title: _______________________________ Print signer’s name: ______________________
Title: _______________________________
Print signer’s name: _____________________
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0.3 Fees and Revisions The specific fees and billing sequences for projects and services aligned with Smart Guide will be described in the ‘letter of Agreement’, upon where Connect 5 reserves the right to refuse to begin, complete or deliver work until the appropriate fees agreed upon are paid by the client. Should any of Connect 5’s invoices not be paid within 60 days we reserve the right to charge interest at the maximum rate permitted by law. Our fees do not include the following reimbursable items; photographic records, printing, paper, retouching, transfer of computer drawings, fees for consultants, long-distance telephone calls and travel. These items will be regarded as out-of-pocket expenses and will be billed in addition to our quoted fee. Additional work requested by the client or performed by Connect 5 after a ‘letter of agreement’ has been approved will be considered ‘new work’ and billed accordingly. Additional and reimbursable expenses will be itemized on each tax invoice and can be verified by way of timesheets, quotes and other records. Contracts, correspondence, accounts and other project related data will be made available to the client upon request provided reasonable notice is given to prepare the desired documentation. 0.4 Patents and Proprietary Issues Connect 5 have applied to trademark the Smart Guide logo to protect the ownership and visual identity of the product. As an established design practice Connect 5 are a registered business through the office of Consumer Affairs. Due to the unique nature of the design, the Smart Guide GPS system has been patented and additional contractual precautions have been put in place with IP Australia so Connect 5 retains sole ownership of the product and use of the specialised maps and commentary as they have been designed and developed entirely by individual team members. It is agreed that Connect 5 will lease the Smart Guide GPS to Melbourne Bike Share and Operators for the first 2 years of implementation before selling the product to its partner for a nominated price. 0.5 Management Compensation & Ownership For the foreseeable future the management team will receive equal profits within the business. Initially, a majority of profits received through the product will be either reinvested back into the business or given to Melbourne Bike Share until substantial profits are made. Minimal dividends will be paid in the interim, where profits will be divided equally amongst the management team. At present, no other parties have financially invested into the business.
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