MGMT20132: NOVEL VALUE PREPOSITION AND SELF REFLECTION
Assessment 1
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Executive Summary
The use of augmented reality seems to be on the rise in various sectors but it yet has taken a step into the manufacturing of construction vehicles. Here is where Caterpillar Inc. steps in as they are currently facing the issue of not manufacturing heavy machinery that fits the standards of the construction companies. This seems to be a huge issue at hand as it would lead to the decline of the customer base. So the use of innovative augmented reality will help in solving the problem.
The use of some parts from the disciplined entrepreneurship canvas help to understand how the reason why such innovation is important for the organisation. The innovative tools are going to help in seeing how different aspects of the innovation are to be established within the organisation.
Contents
Executive Summary 1
Introduction 3
Aim 3
Scope 3
Background 3
Problem to be solved 4
Problem Insight 4
Portfolio of Generated Solutions 4
Solution Selection Analysis 5
Disciplined Entrepreneurship Canvas 6
Initial market (Targeted customers) 6
Value Creation (Key elements of Value Proposition Model) 6
Competitive advantage 7
Raison d’Etre (Strategic Fit) 7
Assumptions and Uncertainties 8
Selection and Application 5 innovative tools and techniques 9
Rationale 9
Business Canvas Model 9
Brainstorming 9
Story Telling Canvas 9
SWOT analysis 9
Critical Self Analysis 10
Recommendation 11
Conclusion 11
References 12
Appendices 13
Appendix 1: Rationale 13
Appendix 2: Business Canvas Model 13
Appendix 3: Brainstorming 14
Appendix 4: SWOT analysis 14
Appendix 5: Story Telling Canvas 15
Appendix 6: Value Proposition Canvas 15
Introduction
The rise of technology in today’s world has been increasing day by day and has an adverse effect on various sectors. Customers are moving towards organisations which are adopting innovative techniques in their work process in order to increases the proficiency levels. This report is to help in focusing on how Caterpillar Inc. should adopt the use of Augmented, mixed and virtual reality into their operations for developing heavy machinery. The novel proposition of augmented reality is scarce or rarely used in the manufacturing of construction machinery. The report will be focused on how the innovative technology trend of using Augmented reality can help to increase the business of Caterpillar.
Aim
To use Augmented, mixed and virtual reality in order to increase the efficiency of the manufacturing process
Scope
The report will help in showing how Caterpillar Inc. can use Augmented reality into its operational process for developing heavy machinery with the proper standard so that there can be effective equipment developed. The use of various innovation tools are to help in performing such a factor.
Background
Caterpillar Inc. was founded in 1925 and has been one of the most successful organisations around the world. Caterpillar focuses on three different industries being manufacturing of heavy equipment, engines and providing financial services. It seems that the organisation is mostly focused on the manufacturing of heavy machinery as most of the revenue arises from this. There are more than 300 construction machines which are developed by the organisation to meet the needs of the customers. Caterpillar is considered to be one of the largest manufacturers of wheel loaders in the world hence it seems that the organisation is clearly present across the world (CAT, 2020).
Problem to be solved
The rise in innovation across the construction sector has been high. Improvements of product standards seem to be the key issue as manufacturing of construction equipment is not focused on this at all. The products being made are not effective in nature and do not get the work done for the construction. New ways have started to arise in the construction industry due to which they want better equipment to work with. Such type of equipment should also be equipped with proper safety standards (Deac, et. al., 2017, pp. 0730). Implementing all of the needs mentioned by the customers is not easily done hence creating a huge issue which creates further problems. Here it is not the volume of equipment which is being discussed but rather the standards which are to rise in them.
Problem Insight
This issue is also affecting Caterpillar Inc. in its manufacturing of heavy equipment as it would have to raise the equipment products. There are different terrains where construction takes place and if the heavy machinery equipment is not up to the mark then it can cause a whole lot of casualties to occur. This leads to the other factor that the whole supply chain processes with the organisation must have uniqueness present within it so that there can be a proper acknowledgment of the needs of the customer.
Portfolio of Generated Solutions
There are a number of solutions that can be provided to the organisation but the use of innovative technology trends is considered one of the most viable ones. Here are some of the innovative technology trends which can be adopted:
- Use of smart connected products to identify customer needs
- Use of Artificial intelligence in order to manage the supply chain so that only effective raw material is attained.
- Use of Augmented reality to create better and improved heavy machinery so that the standards are increased.
Solution Selection Analysis
It seems that out of all of the innovative technology trends which are presented above the use of augmented reality seems to be the best one. It seems that by adopting the Augmented reality there would be better identification of how each of the heavy machinery can be made better. The use of HoloLens would help in creating the 3D image for the machines which can be studied from every little angle. The inspection process for the machines would be easier as every little detail can be seen from the usage of augmented reality. This is important to be does as the machines need to be in shape so that the specific customer market and problem is to be done. Hence the use of such a technology is important for the organisation (Kim, 2020, pp. 25).
Disciplined Entrepreneurship Canvas
Initial market (Targeted customers)
The main customers who are targeted for receiving the benefits of augmented reality are construction companies. This is due to the fact that they are the ones who are to use such heavy equipment for getting their products done. Also, they would need different types of machinery according to the construction projects which are done at different areas.
Value Creation (Key elements of Value Proposition Model)
The use of the value creation helps to show what type of value is offered to the customers. The value proposition model helps in analysing what are the gains and pains for both the customers and the organisation when augmented reality is adopted (Neges, et. al., 2018, pp. 175).
Value Proposition
Products & Services
It seems that the use of augmented reality is to serve as service to the organisation as they will use it to improve the standards of the equipment. This has to be taken into serious consideration while manufacturing the equipment so that proper products are made and are up to the standards for today’s construction work.
Gain Creators
- Increased product standards
- Innovation can be done in the equipment
- The satisfaction of customers is done
Pain relievers
- The time taken to understand the innovative augmented reality will take a lot of time to get adjusted to.
- Increased customer base
Customer Side
Customer Job
There has to be criticism that will be provided by the customers so that whether the products have increased their standards or not can be found out.
Gains
- Standard of products is increased
- Better work will be done by the machinery
Pains
- Identification of how the augmented reality is used cannot be done by each customer.
Competitive advantage
The use of augmented reality provides a prototype of all of the parts of the machine which are to be manufactured. Due to this, there will be a proper application of all the parts and even adding new ones by the engineers so that they would understand how the manufacturing should be done. This improves the standards and also gives what the customer wants (Li, et. al., 2018, pp. 157). This provides a competitive advantage to be achieved in the market as other organisations would not have adapted to such an innovative technological trend.
(Source: By author)
Raison d’Etre (Strategic Fit)
It seems that the use of augmented reality technology is to fit directly into the manufacturing processes. The machines which are being made would be using augmented reality in order to define how each one of them is working according to the needs and standards of the customers. This is necessary to intake because the augmented reality would provide a 3D image of how to build the machines according to the construction work they are used for.
Assumptions and Uncertainties
Customer Desirability
The consumers are not aware of such a technology that is being used. This technology would need to be shown to the customers so that their desirability would increase (Zaher, et. al., 2018, pp. 95). This is a necessary step as all of the machinery being made would require the use of augmented reality to identify how they can be made better.
Technical Feasibility
The mangers would need to provide a training session or hire a consultant in order to show how to work with augmented reality. This is necessary as it takes into account that a certain team needs to be trained in order to work with such a technology and then collaborate with the engineers to manufacture the products.
Financial Viability
Now talking about the finances there is a lot of IT operations that are involved and established which would increase the costs. So the costs of implementing such a technology would be around $300,00 while the operating team would cost extra (Solu, 2019).
Selection and Application 5 innovative tools and techniques
Rationale
This innovative method is used in order to provide proper justification for the use of augmented reality. It would show how technology is established within the organisation. The rationale would help employees to understand the adoption of augmented reality into the manufacturing processes (Adăscăliţei, 2018, pp. 57).
Business Canvas Model
This model identifies the key factors which are involved in adopting innovation. This results in showing how different aspects of the business like its key partners, resources or activities all should be linked to the use of augmented reality. This is important as it helps to establish how the manufacturing profit will run.
Brainstorming
It seems that the whole manufacturing department and the managers need to put in ideas on how the augmented reality is done. This will provide on whether there are any problems that will be faced and that every single person ins on board with the idea (Nee, et. al., 2012, pp. 670).
Story Telling Canvas
The canvas shows that the implementation of the augmented reality will provide to bring benefits to the organisation. This is important as it will show how innovation can change the productivity levels of the manufacturing process in Caterpillar Inc.
SWOT analysis
This analysis is done so that the achievements, weaknesses or chances those are present by using augmented reality. This helps to create a proper profile for the organisation on why they should use the technology.
Critical Self Analysis
This report has provided me with a lot of knowledge and has helped to polish up my innovation skills. Throughout the report, there was one factor that was being done again and again and that was to imply innovative thinking on how to manage the operational processes according to it. So throughout the report, my innovations skills have increased thoroughly.
One of my strengths during the conduction of the report was decision making. I was able to effectively decide on the perfect solution which could be adopted by Caterpillar to manage their manufacturing process. Another one of my strengths was that through creative thinking I was able to make sure that there was an effective choice of innovative tools and techniques selection (Behzadan & Kamat, 2013, pp. 8)
The only weakness that I had during this work was to properly identify issues regarding the organisation. This is due to the fact that the organisation is huge in nature and mostly manages all of its operations effectively.
It can be recommended for me here that I would need to have done further research on the issues so that the use of augmented reality could have been established more effectively.
Recommendation
- Caterpillar should hire a consultant who has experience in using augmented technology
- Augmented reality should be established within the core process of the organisation.
- There should be more use of different innovative tools and techniques
Conclusion
From the report, it can be analysed that there has to be proper implementation of the augmented reality into the manufacturing department so that the standards of the customers and construction projects can be made. The use of innovative tools helped in properly showing how innovative technology can be adapted into the manufacturing of heavy machinery. The establishment of innovation into any operational process is not an easy task at hand. There has to be proper consideration of every single factor which it is going to affect. Hence, in conclusion, it can be speculated that Caterpillar needs to carefully implement augmented reality if it wants to achieve benefits from it.
References
Adăscăliţei, I. (2018). The influence of augmented reality in construction and integration into smart city. Informatica Economica, 22(2), 55-67. https://search-proquest-com.ezproxy.cqu.edu.au/docview/2067321277?rfr_id=info%3Axri%2Fsid%3Aprimo
Behzadan, A. H., & Kamat, V. R. (2013). Enabling discovery‐based learning in construction using telepresent augmented reality. Automation in Construction, 33, 3-10. https://linkinghub-elsevier-com.ezproxy.cqu.edu.au/retrieve/pii/S0926580512001525
CAT, (2020). Equipment Models. (Online) CAT. Available at: https://www.cat.com/en_IN/products/new/equipment.html [Accessed on: 14 April 2020]
Deac, C. N., Deac, G. C., Popa, C. L., Ghinea, M., & Cotet, C. E. (2017). Using Augmented Reality in Smart Manufacturing. In Proceedings of the 28th DAAAM International Symposium (pp. 0727-0732) https://go-gale-com.ezproxy.cqu.edu.au/ps/i.do?id=GALE%7CA559830341&v=2.1&u=cqu&it=r&p=AONE&sw=w
Kim, J. C. (2020). Multimodal Interaction with Internet of Things and Augmented Reality: Foundations, Systems and Challenges. 19-35 https://www-sciencedirect-com.ezproxy.cqu.edu.au/science/article/pii/S0360835219306643?via%3Dihub
Li, X., Yi, W., Chi, H. L., Wang, X., & Chan, A. P. (2018). A critical review of virtual and augmented reality (VR/AR) applications in construction safety. Automation in Construction, 86, 150-162. https://ezproxy.cqu.edu.au/login?url=https://doi.org/10.1016/j.autcon.2017.11.003
Nee, A. Y., Ong, S. K., Chryssolouris, G., & Mourtzis, D. (2012). Augmented reality applications in design and manufacturing. CIRP annals, 61(2), 657-679. https://linkinghub-elsevier-com.ezproxy.cqu.edu.au/retrieve/pii/S0007850612002090
Neges, M., Adwernat, S., & Abramovici, M. (2018). Augmented Virtuality for maintenance training simulation under various stress conditions. Procedia Manufacturing, 19, 171-178. https://search-proquest-com.ezproxy.cqu.edu.au/docview/2131574578?rfr_id=info%3Axri%2Fsid%3Aprimo
Solu, L. (2019). How much does it cost to develop Augmented Reality App. (Online) Medium. Available at: https://arvrjourney.com/how-much-does-it-cost-to-develop-augmented-reality-app-1bffc5fc4cec [Accessed on: 14 April 2020]
Zaher, M., Greenwood, D., & Marzouk, M. (2018). Mobile augmented reality applications for construction projects. Construction Innovation. 88-120. https://ezproxy.cqu.edu.au/login?url=https://www.emerald.com/insight/content/doi/10.1108/CI-02-2017-0013/full/html
Appendices
Appendix 1: Rationale
| Why? | It seems to be the fact that the machinery used for construction projects is not of proper standards due to the fact that the demands from clients have risen. So there needs to be better machinery prepared by Caterpillar Inc. |
| What? | The use of Augmented reality (Innovation) has to be done within the organisation so that there can be proper manufacturing of the machines used for construction. |
| How? | This will be done as Augmented reality would display a 3D image for seeing what the changes are that can be made so that the machine would meet the modern day standards of the construction companies. |
Appendix 2: Business Canvas Model
| Key Partners IT consultants Technology developers Dealer network | Key Activities Development of augmented reality Distribution IT operations marketing | Value Propositions Offering of machinery which has been made so that it can tackle all of the issues that construction companies seem to be facing. | Customer Relationship Online Phone Emails | Customer Segments Construction companies Building and plants |
| Key Resources IT Team Training Facilities Production technology | Channels Service centers Centers for rentals Promotional events | |||
| Cost Structure Production technology Consultant Training Software IT team Research and Development | Revenue Stream Sales of the heavy machinery |
Appendix 3: Brainstorming
Appendix 4: SWOT analysis
| Strengths Better products are offered Innovation is being done within the products as well | Weakness Too much of time is taken for development of augmented reality |
| Opportunities More customers are targeted Different mechanisms can be performed within the products | Threats Not fully meeting standards even by using the innovation |
Appendix 5: Story Telling Canvas
| Subject Augmented reality is used in order to create effective products | Goal Meeting standards of customers | Audience Construction companies | ||
| Before The organisation was not being able to meet the standards in manufacturing their products according to the customers | Set the Scene Caterpillar Inc. does make over 300 construction machines but simply fails to meet the standards of construction companies. | Make Your Point The use of Augmented reality would help in seeing what are the measurements or changes which can be done so that the products are effectively made. | Conclusion There are better work performance for the products which are made hence resulting machinery to be made effectively. | After There are more products which are sold due to the fact that they have been manufactured with the use of augmented reality. |
Appendix 6: Value Proposition Canvas
Standards of Heavy machinery will be high
Gains:
Product standards are up to the mark
Increased customer satisfaction
Service: Augmented reality in manufacturing process
Criticism is to be provided
Pain Killer:
Being able to implement innovation into products being manufactured
Long time for development to occur
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