The system provides synthesizing/curate experiences. 3. 1 The service synthesizes from multiple sources. 3.2! The service personalizes the experience for the ...
Contents 1.
Team and Organization .............................................................................................................. 1
2.
Opportunity Identification: Market Research ............................................................................. 2
3.
Is the Opportunity Real? ............................................................................................................ 3
4.
Is it Feasible? (Win).................................................................................................................... 4
5.
Is it Worth it? (Worth)................................................................................................................ 6
6.
References................................................................................................................................. 8
1. Team and Organization As a team we are Team 6- Vivek Khandelwal, Guruprasad Bhandari, Niels Hartog, Prasanna Rao, S Sridhar and Abhilash Gopalakrishnan. The opportunity identification focused mainly on two key areas of interest. Vivek comes with a background of Technology Sales in Tourism, Guru from Banking Technologies, Niels from Product Managem ent, Prasanna from Marketing, Sridhar from Business consuting and Abhilash from Product Architecture background. We used Google docs for sharing documents initially and also used Slack for conversation and offline reviews. We used Google hangouts for calls since 4 of us were from Bangalore and two in Middle-East. For consolidation we started meeting at Bangalore and then synching up with the rest of the team over hang out call. We also took part in every part, also divided work considering strengths like the tourism background and business consuling and enjoying it. We plan to join together for the final presentation at Bangalore if possible as a complete team.
Team Meeting at Starbucks Coffee Shop – Brainstorming with a Coffee
2. Opportunity Identification: Market Research
There are several millions of people across the world who would like to have unique experiences of places or events, but are unable to experience due to various constraints. The experiences include to cases like a couple wanting to experience Paris together on a single day, a person or family wanting to watch world cup finals from the front seat of the stadium, climb Mount Everest and Businesses who want to run travel campaigns/promotions. The constraints include risk involved in travel including safety and security, disability, old age, pregnant women, health issues, monetary constraints, poor travel conditions like travel restrictsions. At the same time, businesses struggle to re-invent themselves in connecting with these groups who leverage digital content in decision making. [1] Value Proposition: Virtual Toursim eliminates all risks & can deliver requried experience within time and money constraints. With Virtual Tourism, we would be able overcome the constraints of budget, seasonality, number of days and provide experiences of service, theme parks and attaractive destinations.
3. Is the Opportunity Real?
Description Benefit Proposition Key Business Goals
Primary Market Secondary Market Assumptions Stakeholders
Recreate the thrill of travel/tourism in an authentic manner virtually. Addressing the need for people to experience new places, unable to perform physical journey due to ailments, cost/affordability or time constraints. 1. Service millions of potential tourists not able to fulfil travel desires due to various constraints , 2. Service people unwilling to travel but interested in the experience. 3. Hotel and Travel Businesses wanting to run campaigns. 4. Facilitate planning for regular tourists to undergo experience of a future travel. Individuals who are not able to travel due to constraints of ailments, cost/affordability or time constraints. Businesses Looking for Platforms for delivering virtual experiences to attract more customers. The service/product to recreate the experiences close to reality. Governments, Hotels, Airlines, Theme Parks, Travel Management Companies, Online Travel.
The Product-Service system is a venture to make the virtual travel today which is majorly solo to be shared to multiple people as a shared stage whether they are couples or families, wanting to experience it together. The existing solutions which can provide similar experiences like youvisit.com [3], travel brilliantly by Marriott [ 4] and also YouTube were considered.
Primary and Secondary Needs 1. The system provides capture of experiences 1.1 The service captures as images, videos with audio, animation/3D videos. 1.2 The service captures experience using sensors smell, temperature, and necessary to recreate the experience. 1.3 The service provides capturing from multiple people.
2. The system provides store of experiences 2.1 The service provides storing the experience in different formats including existing ones like jpeg,mpeg4,etc, 2.2 The service provides storing in smaller storage needs.
3. The system provides synthesizing/curate experiences 3. 1 The service synthesizes from multiple sources 3.2! The service personalizes the experience for the user. 3.4! The service automatically synthesizes the preferences.
4. The system provides delivering experiences 4.1 The service delivers the experience at home 4.2 The service delivers at a theme park/ museum
4.3 The service delivers experience at a tourist destination 4.4 The service delivers at location of customer choice
5. The system is easy to use 5.1 The service/product is for everyone to use anywhere in the world across cultures and backgrounds. 5.2 The service/product provides ability to search and share content and also perform reviews and share the reviews
6. The system provides search facility 6.1 The service/product provides search for the destinations, content, reviews to aid decision making. 6.2 The service/product provides indexing with best search engines like Google.
7. The system provides a ranking of content 7.1 The system provides measuring content based on the value it created in terms of decision making, in terms of influencing customers.
Latent Needs (Innovation Potential) 8. Perform virtual tour as a Group 8.1! Provide ability to trip as a couple. 8.2! Provide ability to trip as a Family or 5-6 members as a group.
9. Integrate to existing platforms 9.1! Integrate with social media platforms to make virtual travel a fun experience by creating virtual tourist community across Facebook, Instagram, Trip Advisor, and WhatsApp. 9.2! Enable people to perform content uploads in places of low bandwidth. 9.3! Integrate with TripAdvisor and shared travel groups, like Airbnb, Uber and Homeaway.
10. Identifies & tunes to customer preferences 10.1! Learns customer preferences from social networks. 10.2! Aids customer decision of choosing a destination. 10.3! Filters and personalizes customer experience.
4. Is it Feasible? (Win) The decomposition was identified as Create/Capturing content, Storing content, Synthesize/Curate, Personalize and Deliver experience including the group experience. Based on the solution with various approaches, we arrived on consideration that we should be able to consider content from various streams and also deliver content in various methods so as to be able to enter the market and innovate the travel world.
Figure 1: Win Considering the Service Experience Cycle across Business to Business (B2C), Business to Customer (B2C) experience and considering the decomposition based on Capture, Store, Synthesize and Deliver as a Group of people. The Final solution considers gestures, audio synthesis and synchronization to deliver shared experiences. Personalization is using a mix of machine learning and inference. All technologies exist and are feasible. We might innovate further on synthesis and Delivery Control for experience.
Figure 2: Service Experience Cycle Combined – B2C and B2B As in Figure 2, the Service Experience Cycle for B2B and B2C were considered. Business to Business (B2B) represents the cycle of about how Businesses like hotels and travel companies would like to run campaigns or promotions. Business to Customer (B2C) involves cycle of how an individual user would use the Product Service System and experience the same. The Planning and Decision Process Flows and Ticketing/Payment Process Flows mainly capture the B2C aspect, with innovations in tour as group, integration of social media for enabling decisions. The Web/Internet Application based organization also offers unique values. In B2B, we have Corporate Sales Flow and the Execution Cycle with in organizations. The Delivering Experience Process Flow is observed as common and here the preparatory work, synthesis aspects and experience delivery needs to offer unique experience. As in Figure 3, the SCAMPER approach is used and Decomposition used to analyze the various approaches to arrive at the solution. The Connections represent the methods which can find place in the final solution. For delivering authentic experience we would need Virtual Reality based approaches like Occulus Rift. For Shared Trip, we would need ability to gesture and voice detection so that we can reduce dependency on robotic arms etc. Cheap sensors would enable sensory experiences. The delivery mechanisms therefore are VR supported or Near VR experiences and delivery platform is basically Cloud or Internet.
Figure 3: Decomposition and Solution Approach using SCAMPER
1. Solution Overview As in Figure 4, a cloud/internet based content build and sharing delivered as Platform as a Service on subscription mode. Professional consulting services to business to build high quality content. The content need to be curate and delivery to home including VR mobile, virtual reality headsets, and API based real-time or narrow bandwidth Integration with other online travel or government agencies. Integration of virtual/physical travel desks could be an extension.
Figure 4: Solution Overview
2. Business Model The business model could be based on: 1. 2. 3.
Per Use or Per Hour -Individuals Annual License Fees - Business / Tour operators/ Promotion Council – One time fees Pay Per experience - Standard / Customized like streaming/ senses package – Sight, Smell & Sound.
5. Is it Worth it? (Worth)
As in Figure 5, Financial Analysis done involves customers following the B2B and B2C approaches. B2B includes individuals with time of other constraints for physical travel but want to get immersive experience thru' Virtual Tourism as individual or in groups - Downloads content from our platform and Pay per use. B2B includes Tourism Development Bodies, Star Hotels, Travel Agents, Airlines, High end Real Estate Property Developers want VR content to be developed and hosted on our platform - Fixed Charges for Customized Content Creation and Annual Fee for Hosting Services.
Figure 5: Basis of Revenue Calculations As in Figure 6, the Model and Base Case were built on the basis of various parameters including sales, marketing, capital cost considering that the content creation is outsourced and equipment is owned by the system owner.
Figure 6: Model and Base Case As in Figure 7, the NPV Analysis done includes market inputs from various agencies as one revenue source and overtime we build great content, which turns out to be the other revenue stream. The NPV analysis presents a positive value. The NPV Analysis details is present in the excel sheet attached [8] Discount Rate considered is 8%.
Figure 7: NPV Analysis for Virtual Tourism Q1: What is the investment required to develop the product or service? Considering the aspects of Business Set-up Cost, Capital Cost of Content Creation Equipment, Application & Platform Development Cost and Market Launch total investment comes to 32.65 Million USD. Q2: Will there be enough margin to cover this investment? Q2.1 How big is the market and how much revenue can we generate? Total Revenue from year 1 is 24.04 Million USD. From a Business to Business (B2B) angle business – Governments, Airlines, Hotel Chains and others make 51792 as total number across the world. From this we consider a 10% opting for Virtual Tourism. From Business To Customer (B2C) mode, we have considered Business People (0.05%) and People with disabilities/unable to travel (0.25%).First Year B2C expected is 11,09,500 people. Every year 20% new customers are expected. Q2.2 What will it cost to produce or deliver our product or service? Investments of 32. 65 Million USD considers, the Operating Expenses of Business Setup Cost -10, 00,000 USD, Annual Salary of 72,000 USD per person and 7 people required for content creation, 4 member administration team at 36,000 USD per person, IT Support of 5 people with 60,000 USD per person and other operating expenses of 500000 USD are considered for delivering the product or service.
6. References 1. 2.
Yu-chih Huang, Clemson University, VIRTUAL TOURISM: IDENTIFYING THE FACTORS THAT AFFECT A TOURIST'S EXPERIENCE AND BEHAVIORAL INTENTIONS IN A 3D VIRTUAL WORLD, 2011 MMGY Global 2015 Portrait of American Travelers® http://www.mmgyglobal.com/services/research/portrait-of-american-travelers/
3.
Youvisit.com
4.
Travel Brilliantly – by Marriot Hotels
5.
NPV Analysis for Virtual Tourism
http://www.youvisit.com/virtual-reality https://travel-brilliantly.marriott.com/our-innovations/oculus-get-teleported Virtual Tourism NPV Analysis_Rev 1.xlsx
