Group Process Book
BUSI 355 Professor Akella Winter 2016 Paige Cheshier Jordan Dabney Ryan Genn
Meeting 1 January 10, 2016: Designate leadership roles and ground rules for the group. Leadership Roles: - Team lead: Paige - Process Book Lead: Jordan - Work Session Facilitator: Ryan - Weekly Debrief Coordinator: Paige (lead), Jordan and Ryan assist
Ground Rules: 1) Communicate openly with one another in a timely manner 2) Be respectful and open to all group members’ ideas 3) Attend all group meetings promptly 4) Allocate work fairly, while utilizing each individual’s strong points 5) See each problem that arises as an opportunity for improvement and growth 6) Meet all assigned deadlines 7) Vocalize workload struggles and ask for additional support when needed 8) Make completed work digitally accessible to all members through Google Drive submissions
Desert noun: desert; plural noun: deserts
A dry, barren are of land, especially one covered with sand, that is characteristically desolate, waterless, and without vegetation. Â
Desert Definition Four noun
Any place lacking in something: The town was a cultural desert.
,GHDV )URP 'H효QLWLRQ Four - Implications of Walmart (closing down the ma & pa shops of smaller towns) - Nutritional foods not affordable (in grocery stores and in restaurants) - Rising crime rates including gun violence (Savannah and otherwise)
Gun  Violence While working on our project in class 3, we decided the gun violence problem was the best choice. It has become a major problem here in Savannah and we would like to find a solution for it.
In 2004 there were 17 murders in Savannah and only seven in New York City per that 100,000. In 2015, there were 33 murders in Savannah and only four in New York City per 100,000 residents. Over the last 12 years our murder rate has essentially doubled, while New York cut their already low rate by over a third. Today Savannah is more than eight times more dangerous than Gotham City. This affects us all. I’ve had an elderly neighbor so savagely beaten during a carjacking, she will never be the same. The diners and employees of a restaurant I frequently walk to experienced the terror of a drive by shooting at 5 in the afternoon. Another restaurant I enjoy was just forced to close due to death threats against its employees. The person making the threats killed one of us on New Year’s day. Armed robberies blocks from my home have become too commonplace. I had a guest at breakfast exclaim they had heard gun shots during the night, and I live in a supposedly “safe” part of Savannah. We can, and must do better. Citizens must be relentless in their demands that we get the right leadership, strategies, and tactics to make our city safe for everyone, everywhere, anytime. http://savannahnow.com/column/2016-01-12/rolfe-glover-savannah-more-danger- ous-new-york-city
*URXS 5HɀHFWLRQ #1 -Define roles, team rules and expectations -Divide tasks evenly and fairly, create a meeting schedule -Begin developing a market opportunity analysis based on “Desert� prompt -Keep Savannah in mind for our target market and begin researching needs -Goal of project for team: be able to rationalize and debate what makes the most sense for our target customer when developing project
*URXS 5HɀHFWLRQ #2 -Began running into road blocks surrounding the topic of gun violence in Savannah -Researched strengths and weaknesses of key competitors and continued to asses the market -Struggled this week finding a solution for Ryan’s absence during the MOA presentation and worked to come up with a reasonable alternative so everyone could participate
*URXS 5HɀHFWLRQ #3 -Continued work on Market Opportunity Analysis presentation -We solved the dilemma of Ryan’s absence by having him make You Tube videos with content to add into the presentation -Continued working on our Prezi document to present to panel on gun violence in Savannah -Major concern this week was the integration of the videos into the deliverable had to rely on technology, hoped videos didn’t make the presentation feel broken up -Met many times this week to make sure we were ready both in material and for the presentation -Worked well together as a team this week as we overcame major bumps along the way
Presentation  Day January 29, 2016
Panelists  Feedback FARAGO: - Plot holes - Didn’t connect desert link - Needed to add numerical data - Re-order the story - Introduce data sooner - Justify why an app was the solution - Look into what SCAD is currently offering VILADAS: - Thought the real problem was lack of security - Asked what lack of security felt like (describe it better) - How were we lead to an app? - How does it feel to be a customer (customer empathy map) NICKLES: - Wanted analytics and emotion - Show path between need and logic
*URXS 5HÉ€HWLRQ #4 -Reviewed feedback and commentary from MOA panelists after presentation and realized we needed to change topic all together -Focus changed to SCAD student target market and began contemplating their needs -Created 10 question survey and posted to SCAD groups on social media -Compiled survey data focused on safety and walking alone at night -Looked at Cabs vs. Uber -Added extra group meetings and research requirements of team to make up for lost time
Brainstorming - Focus on the impacts - SCAD students feeling insecure - How can we make them more secure? - Who can solve this besides us? - Police - SCAD Security - Night is the problem (walking around) - Don’t have cars - Don’t live in dorms (dispersed around Savannah) - Why are they not using these facilities? - SCAD Security --> only SCAD properties, takes too long, rude
Current  Solutions
Perameters of a Solution Affordable
For Students
Safe
Solution Fixed Price
Timely
City Wide
Student  Survey Who? - 52 SCAD Students What? - 10 question survey: - SCAD transportation - How they commute - Thoughts on safety - Uber vs. Taxi When? - February 3, 2016 to February 14, 2016 Where? - Created with Survey Nuts - Posted to social media and various SCAD affiliated groups Why? - For primary research - Gaining opinions from current SCAD students
Survey  Questions 1. How safe do you feel in Savannah? 2. How safe do you feel at SCAD facilities? 3. How often do you use SCAD transportation? 4. How many nights a week do you walk from place to place? 5. How often do you use Uber? 6. How often do you use a taxi? 7. What do you like and dislike about Uber? 8 What would you change? 9. What do you like and dislike about a taxi? 10. What would you change? 11. Would you use Uber more often if you could charge the payment to your SCAD card? 12. Do you prefer Uber or taxi?
Survey  Summary The survey asked responders to rank their answers on a scale of 1 to 10, with 1 being the lowest and 10 the highest: 1. How safe do you feel in Savannah? 16 students said 6 2. How safe do you feel while at SCAD facilities? 12 students said 7 3. How many times a week do you use SCAD transportation? 38 students, or 73%, said they don’t use SCAD transportation at all 4. How many nights a week do you walk from place to place? 22 students, or 42% said never, they drive or rely on other means of transportation. However, 32% of the students polled responded that they walk at night 1-3 times per week. 5. How many times a month do you use a taxi service? 30% said 1-3 times a week
Survey  Summary 6. How many times a month do you use Uber? 40% said 1-3 times a week 7. Do you prefer to use Uber or a taxi service? 84%, or 44 students, said Uber When asked to explain their general likes and or dislikes about Uber, some of the responses were: 8. Cheap, easy, convenient, can be dangerous, stranger as a driver, reliable, price surges are a complaint, nice to have as a back up plan, ability to pay online 9. If you could see a modification to Uber, what would you change? Background checks, surveillance cameras in the car, request specific gender driver, have a car sign identifying the vehicle, driver profiles. 10. Would you use Uber’s services more often if you could charge the payment to your SCAD card? 46% of students said yes
*URXS 5HÉ€HWLRQ #5 -52 responses to the survey, continued to promote survey and collect results -Looking deeper into the business models of both Taxi and Uber services -Officially decided on a solution to the need, a driving service for students, run by students -We are working hard to make sure we meet deadlines so that everything comes together on time
The Business Model Canvas Customer Segmentation: - Niche Market --> college students (test market SCAD students) Value Propositions: - Price - Risk reduction - Accessibility
- Convenience/usability - Transparency
Channels: - Social Media - Student email - Campus ads
- Brand recognition (decals on cars) - Word of mouth
Customer Relationships: - Personal assistance Revenue Streams: - Usage fee
The Business Model Canvas Key Resources: - Physical (cars) - Human (drivers) Key Activities: - Problem solving (keeping students from walking from place to place) Key Partnerships: - Reduction of risk and uncertainty (the risk of walking at night) Cost Structure: - Fixed cost ($10 per ride)
Questions That Need to Be Asked - Make a survey for taxi/Uber drivers - Contact taxi drivers and see how they chose drivers - How do taxis and Ubers price themselves? - How would students be drivers? - Would parents be okay for their kids to be driving strangers around? - How would drivers feel safe driving around strangers? - Camera or communication for drivers - Driving duos? --> driver can choose - Mandatory starting at 8:00 pm?
College  Carpool - Student to student driving service - 10 staffed drivers - 5 drivers on duty - 8 hour shifts (6:00 pm - 2:00 am) - $10 an hour driver compensation - Accepting credit/debit card with Square card reader - Students use SCAD ID - Profile of driver on app (to get to know the driver) - App based - Rides covered from River Street to Derenne Avenue
College Carpool Driving Radius
The Empathy Map
What Does She See?
When speaking to what our key customer sees in her daily life, it is that of her college campus, she leads a busy and on-the-go life while being surrounded by other students and Savannah locals. She is someone who utilizes SCAD transportation when possible, however, as a new college student looking to explore the city’s nightlife and make new friends. As a result, she also unknowingly opens herself up to the criminal activity that happens all around the city while she is vulnerable and alone.
What Does She Hear?
Our key customer is someone who hears a variety of things including encouragement form her friends to go out at night, even though it is against her better judgment. She knows that her parents often speak to her about going out at night, and while they urge her not to, she is over come by peer pressure as they assure her they will stick together as a group. Her key influencers are her professors, friends, other students, as well as her parents. Social media plays a key role in her decision making as she sees friends posting Snap Chat videos of their fun Friday night out and she decided the reward outweighs the risk, in her mind, and ventures out into the dark Savannah night.
What Does She Think and Feel?
As for how our key customer really thinks and feels on the inside, she is somewhat uneasy about her choice to go out alone at night, feeling vulnerable and scared for her safety and well being. She is very uneasy about walking around the city at night by herself however she is constantly annoyed with commuting options including the lack of city parking and the slow transportation system provided by her University, thus causing her to walk back home from her night out.
What Does She Say and Do?
Our key customer is someone who is driven, confident, and artistic. Her outside factors have her in an internal debate every time she goes out at night about whether or not to choose coming home using a taxi service or an Uber, or just walking.
What is the Customer’s Pain?
Her key factors of pain come from the need to commute across SCAD’s vast “campus” buildings and which method of transportation to use for her trek. The safety and overall crime environment of Savannah is also something that is a pain point for her which is never something that she though she would have to struggle with when she was planning to come to Savannah for college as the city itself is represented as a perfectly charming and safe, quaint destination for students and tourists alike.
What Does the Customer Gain?
In having a new type of transportation offered to her, our customer gains a safe and reliable travel service at a decent price. The service, composed of SCAD student drivers will allow for efficiency and piece of mind for her while she uses the service whether it is for a planned or unplanned use.
Ideation Ideation is to help you come up with new or better options. Ideation has two main phases: idea generation, where quantity matters and synthesis, in which ideas are discussed, combined, and narrowed down to a small number of viable options. Ideation helped us work out the kinks of our Business Model Canvas. It also helped us narrow down our idea and come up with a solid problem and solution.
Ideation 2ȾHU 'ULYHQ
Key Partners
Key Activities
- College student - App - SCAD Card
- Keeping students from walking place to place - Having a relationship with the driver - Feeling comfortable with drivers
- Driver
Value Propositions
Customer Relationships
Customer Segments
2ȾHULQJ D student to student driving service to ensure safety and satisfaction of both riders and drivers
- Personal assistance GULYHU ULGHU
- College students
Key Resources
Channels
- App - Student driver - Vehicles
- Social Media - Student Email - Campus Ads - Word of mouth - Brand recognition
Cost Structure
Revenue Streams
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- App pay - SCAD Card - Credit/Debit
Customer  Segments An organization serves one or several Customer Segments.
Value  Propositions It seeks to solve customer problems and satisfy customer needs with Value Propositions.
Channels Value Propositions are delivered to customers through communication, distribution, and sales Channels.
Customer   Relationships Customer relationships are established and maintained with each Customer Segment.
Revenue  Streams Revenue streams result from value propositions successfully offered to customers.
Key  Resources Key resources are the assets required to offer and deliver the previously described elements...
Key  Activities ...by performing a number of Key Activities.
Key  Partners Some activities are outsourced and some resources are acquired outside the enterprise.
Cost  Structure The business model elements result in the cost structure.
Visual  Thinking Visual thinking means using visual tools such as pictures, sketches, diagrams, and Post-it notes to construct and discuss meaning. We decided to use sketches and Post-it notes on our Business Model Canvas poster. This helped us a lot to visualize our idea and what we want to do with it.
Visual  Thinking
Customer Segments
Value  Propositions
Channels
Customer Relationships
Revenue  Stream
Key  Resources
Key  Activities
Key  Partners
Cost  Structure
Prototyping Prototyping is a tool for developing new, innovative business models. It also encourages you to explore new ideas. Our two prototypes do exactly that.
Prototype 1 Key Partners
Key Activities
- College student - App - SCAD Card
- Keeping students from walking place to place - Having a relationship with the driver - Feeling comfortable with drivers
- Driver
Value Propositions
Customer Relationships
Customer Segments
2ȾHULQJ D student to student driving service to ensure safety and satisfaction of both riders and drivers
- Personal assistance GULYHU ULGHU
- College students
Key Resources
Channels
- App - Student driver - Vehicles
- Social Media - Student Email - Campus Ads - Word of mouth - Brand recognition
Cost Structure
Revenue Streams
)L[HG FRVW DQG SLFN XS IHH PLOHV
- App pay - SCAD Card - Credit/Debit
In Prototype 1, we focused on personal assistance as our Customer Relationship. By doing so this changed our Channels, Key Resources, Key Partners, and Key Resources, but our Key Activities and Value Proposition stayed the same.
Prototype 2 Key Partners
Key Activities
- College Student - Drivers - SCAD Card - App - SCAD
- Keeping students from walking place to place - Having a relationship with the driver - Feeling comfortable with drivers - Mini campus tour
Key Resources - App - Student driver - Vehicles
Value Propositions
Customer Relationships
Customer Segments
2ȾHULQJ D student to student driving service to ensure safety and satisfaction of both riders and drivers
- Personal assistance GULYHU ULGHU
- Self-service
- College students - Freshman and transfers
Channels - Social Media - Student Email - Campus Ads - Word of mouth - Brand recognition - Orientation - SCAD booklets
Cost Structure
Revenue Streams
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- $20 for a tour - Year membership
- App pay - SCAD Card - Credit/Debit
In Prototype 2, we added a Key Activity (Mini campus tour). By doing so this changed our Customer Segments, Customer Relationships, Channels, and Key Partners. Our Value Proposition still remains the same.
Story  Telling
Story telling makes the idea tangible, gives clarification, and engages people. We think that our story does these three things for the audience.
Scenarios Scenarios are useful in guiding the design of new business models or innovating around an existing model. Coming up with scenarios helped us visualize where we wanted our business to go as of right now and in the future. It also helped us visualize if we ever ran into a problem.
Scenarios Scenario #1
Incoming freshman or transfers don’t know the city
$20 for a student tour around the city
Scenario #2
College students struggle with money and owning a car
Can pay for a year membership for the service
Scenario #3
Student partied way too hard and can’t drive home
Pulls up app and requests a student driver
Scenario #4
Service goes really well and has a lot of good feedback
Branches out to other colleges
Scenario #5
Students aren’t comfortable with getting in a car with a stranger
Maybe using a SCAD vehicle to accommodate more than one student
Group 5HɀHFWLRQ -Focus on completing process book draft, keep refining book’s content to ensure quality -Worked together as a team to bring everyone’s individual research together for the book and presentation -Solidify financial plan and be able to explain it -Continue to explore differences in Taxi and Uber services -Meet frequently to finish project and presentation -Less individual assignment focus, more team driven work to cover all bases before submission
Average Cost of a taxi
Average Cost of Uber
Breakdown for Original Projections - 10 staffed drivers - 5 on duty - Hours are 6:00 pm to 2:00 am - $10 per ride - Projecting three rides per hour per driver - Paying with Square card reader
3
Financials Ways
Original Projections
Conservative Projections
Optimistic Projections
Original Projections
Manager Wages
12,480 61,116
61,116 2,884
Original   Projections - Started off with $10,000 - Revenue for December, June, July, August are $2,000 because students are not in town - Revenue November and September are $4,000 because students are only in town for half the month - Revenue January, February, March, April, May, and October are $8,000 because students are in town for the school year - This makes total cash available $64,000 - Cash paid out total comes out to $61,116 - Our cash position total comes out to $2, 884
Conservative  Projections
Conservative  Projections - Started off with $10,000 -50% less than our Original Projections - Revenue December, June, July, August are $1,000 because students are not in town - Revenue November and September are $2,000 because students are only in town for half the month - Revenue January, February, March, April, May, and October are $4,000 because students are in town for the school year - This makes total cash available $32,000 - Cash paid out total comes out to $35, 044 - Our cash position total comes out to -$3,044
Optimistic Projections
Optimistic Projections - Started off with $10,000 -25% more than our Original Projections - Revenue December, June, July, August are $2,500 because students are not in town - Revenue November and September are $5,000 because students are only in town for half the month - Revenue January, February, March, April, May, and October are $10,000 because students are in town for the school year - This makes total cash available $80,000 - Cash paid out total comes out to $55,434 - Our cash position total comes out to $24, 566
Break Even Equation Total Variable Cost / Annual Rides = Variable Costs (VC= associate wages) Variable Costs = 25,600 Fixed Costs=33,930/ yr Fixed Cost / Month = 2,827.50 Price Per Ride =$10 Break Even Equation : Fixed cost / 10 - Variable Costs Variable Costs = 25,600/ 6,400= 4 Profit Per Ride= $6 Fixed Costs/ Profit Per Ride = What it takes to turn a profit 33,930/6=5,655 BREAK EVEN = 5,655 rides/ year 471 Rides a month and 117 rides a week
Break  Even Explanation As a result of our survey administered to SCAD students: 2,000 students would use Uber 1-3x a week - some are week day customers so we won’t get those customers. 40% of polled students said they use Uber 1-3 times a week To be conservative - we averaged that to be 2 times a week Ave of 2 rides/week = 2 x 2,000=4,000 We are taking 25% of the estimate to show that College Carpool could obtain 1,000 rides per week. At that evaluation with our conservative estimates, these financials are more than possible to allow our business to be successful.
Forward Thinking - Closed during off months? - Increase pay during finals - Expanding to more cities (price adjusting) - Adding drivers and hours - Expanding radius of service - Insurance on business?? - Schools that we could expand to - Vanderbuilt, Nashville - Clemson, Clemson - Alabama, Tuscaloosa - UGA, Athens - USC, Columbia
Appendix
Appendix
Appendix
Appendix
Sources Google Images http://savannahnow.com/column/2016-01-12/rolfe-glover-savannah-more-dangerous-new-york-city surveynuts.com http://www.businessinsider.com/uber-vs-taxi-pricing-by-city-2014-10 Business Model Generation http://scmpd.org/new-video-illustrates-effects-of-gun-violence-in-savannah/ http://uberdriverdiaries.com/how-much-do-uber-drivers-really-make/ http://www.neighborhoodscout.com/ga/savannah/crime/ http://scmpd.org/weekly-crime-maps/ https://newsroom.uber.com/details-on-safety/?_ga=1.15977717.270715982.1456254634