Entrepreneurship development assignment: Humanoid Robot by Lean Startup

Question

Task: Prepare a report on entrepreneurship development assignment in NOT more than 4000 words exploring the lean startup regarding the entrepreneurship development on humanoid robots.

Answer

1. Introduction (of the lean Start-Up)
Humanoid robots are the type of robots that matches the appearance of the human body. Generally, it has two arms and two legs like a human body and also has a torso with a head used for different functional purposes. These robots are gaining attraction in the market these days. This entrepreneurship development assignmentwill discuss the lean startup regarding entrepreneurship development on "humanoid robots."

The lean startup process has several differences with the model of traditional business. Lean startups used to hire new employees so that they can learn and develop their skills rapidly. The business model is based on hypotheses and gives more value to the experimental insights. In addition to that, lean startups used to focus on the acquisition cost of the customer and lifetime value for the customers. This startup method focuses on the issues that are needed to be resolved fist. This process follows the rule of manufacturing the tiniest form of the product for customer feedback. The method is less expensive and minimizes the risks of high failure in the beginning.

The main objective of this project is to:

Explain the profit, sales revenue, and profit margin for the first three years of the business operation.
Discussion about the "customer value proposition canvas"
Explanation of the "Lean Business Model" canvas
Representing the detailed development plan regarding marketing, operation, a technical solution with information, human resource planning, and financial plan. Moreover, the report on entrepreneurship development assignmentwill also explain the possible future developments of the business.

2. What are the main business objectives of the startup examined in the present context of entrepreneurship development assignment?
2.1. Profit, sales revenue and profit margin (for first three years of operation)

Entrepreneurship Development on Humanoid robot
For the year 2020 (Amount in dollars $)

Sales Revenue
	Market sales income	3,50,000
	Revenue from development training	80,000
	Total Revenue		4,30,000

Expenses
	Procurement costs	90,000
	Salary of employees	9,000
	Building Rent	11,000
	Short term Interest paid	6,000
	Transportation expenses	4,000
	Marketing cost	2,000
	Total expenses		1,18,000

Profit
	Income from sales	40,000
	Total Gain		40,000
Losses
	IT repair	10,000
	Total Loss		10,000
Net income			3,42,000
Profit margin	Total sales-expenses/Total sales		0.72%

Entrepreneurship Development on Humanoid robot
For the year 2021 (Amount in dollars $)

Sales Revenue
	Market sales income	2,90,000
	Revenue from development training	50,000
	Total sales Revenue		3,40,000

Expenses
	Procurement costs	85,000
	Salary of employees	8,000
	Building rent	11,000
	Short term Interest paid	7,000
	Transportation	4,000
	Marketing cost	3,000
	Total expenses		1,18,000

Profits
	Income from sale	35,000
	Total Gain		35,000
Losses
	Customer settlement cost	12,000
	Total Loss		12,000
Net income			2,45,000
Profit margin	Total sales-expenses/Total sales		0.65%

Entrepreneurship Development on Humanoid robot
For the year 2022 (Amount in dollars $)

Sales Revenue
	Market sales income	2,70,000
	Revenue from development training	50,000
	Total Revenue		3,20,000

Expenses
	Procurement costs	90,000
	Salary of employees	8,000
	Building Rent	11,000
	Short term Interest paid	6,000
	Transportation	4,000
	Marketing	3,000
	Total expenses		1,22,000

Profits
	Income from sale	18,000
	Total Gain		18,000
Losses
	Material damage cost	7,000
	Total Loss		7,000
Net income			2,09,000
Profit Margin	Total sales-expenses/Total sales		0.69%

3. Customer “Value Proposition Canvas”

Business Model Canvas in entrepreneurship development assignment

“Value Proposition” Map

Gain creators- The customer will gain many things from the product of the Startup. The product will help to mitigate the problem of mortality in the powerplants and the construction sites(Fernandes, et al., 2018). It will be a valuable product and the company will provide all-time service for maintaining a good relationship with the customer.
Pain Relievers- The product named Humanoid designed by the “lean” Startup will help to mitigate the customer pains by providing good services. In this pandemic situation, social distancing has become a main issue on the commercial site(Inomata, et al., 2020). Thus, it is stated in this entrepreneurship development assignment that implementation of the product on-site will help to maintain the social distancing norms in the site. There will less human intervention and the operations will be executed faster.
“Products and Services”- The product of the Startup will create again for the company that are related to the construction sector. The power plants will also get profit from the implementation of the product(Äyväri & Jyrämä, 2017). The owners will get relief from giving remuneration to the families of dead employees and can make a profit on the international market(Inomata, et al., 2020). As the Startup have involved them to provide all-time services for the product, thus it will engage in smooth performance. Moreover, the execution of the operation will get faster. “Customer Profile”
Gains- The expectation of the customer will get met by the implementation of the product. As it involves the latest technologies thus, it will provide high performance to the customers(Fernandes, et al., 2018). The customers can think of innovative methods and their task will get executed faster than the work done human workforce. Maintenance and up-gradation will be done by the company so that the customer cannot complain about the services.
Pains- Lack of knowledge in the employees will leads to a problem in the handling of the product. The product needs to be handled by the experts only so that it can provide efficient service(Siltala, et al., 2018). The situation will become difficult as the product is new in the market and the people do not have such knowledge on it.
“Customer jobs”- It will engage in satisfying the customer needs as the product named "Humanoid" by the Startup will fulfil the demands. The customer can implement innovative methods on their system to improve performance.

4. Business Model Canvas of the Lean Startup examined in the segments of entrepreneurship development assignment

Key Partners	Key Activities	Value Propositions		Customer Relationships	Customer Segments
The key partners of the Start-up to launch the product will be owners of the powerplants and construction sites. They will like to invest in this product along with the other retail sectors that are searching humanoid for their commercial purpose(Joyce & Paquin, 2016). In various sectors, social distancing has become the most essential part. The problem can be solved by implementing the product and decreasing the human intervention on the site.	The key activities of the Startup will be designed and launch the product with proper patent and meet the customer's demands(Qastharin, 2016). As the product is related to technology, thus it will need maintenance that will be done the experts in the startup.	The owners of the powerplants and construction sites will get great value from the product named "Humanoid Robot". It will help to decrease the mortality rate in commercial sites(Toro-Jarrín, et al., 2016). Along with that, the "disaster response" management can be handled without human intervention. The customer will get satisfied with the services provided by the "humanoid".		The Startup will provide all-time service to its customers not only by delivering the product but also supervising its maintenance(Sort & Nielsen, 2018). Maintenance is a must process for the technological product as it may need some modifications or up-gradation to provide better services.	The customer segments mainly comprise of the owners from the powerplants and construction sites that need the product for their “disaster response” management(Joyce & Paquin, 2016). Along with them, various commercial sectors can implement a humanoid robot for their operation purpose. It will work faster than the human brain and provide efficient services.
	Key Resources			Channels
	The product of the ‘lean’ startup will need two types of resources namely- hardware resources and software resources(Joyce & Paquin, 2016). The design of the product will involve both the resources and build it into a final one. It will not need any expensive revenue sources that can demotivate the customer to purchase it.			The marketing channels will involve e-commerce sites and social networking sites through which a large number of customers can reach all over the world. It will improve the reach of the Startup within a short time. Use of social media has become an efficient way to connect with the customers and provide a visual demo of the product(Joyce & Paquin, 2016). It will help to engage potential customers in the Startup.
Cost Structure			Revenue Streams
The approximate estimation of the cost structure required in the present case of entrepreneurship development assignment indicates that the Startup have to invest around $12 million as projected for three years. It includes the design cost and other expenses cost along with the profit percentage of the company. The hardware key resources will be a little bit costlier than the software resources and thus, they have to grow the savings for it.			The Startup can increase its revenue by providing rent on the product. Many companies don’t want to purchase the product permanently, they depend on taking lease or rent of the particular product(Joyce & Paquin, 2016). Thus, different companies will take rent of the product for the current pandemic situation.

Business Model Canvas in entrepreneurship development assignment

Figure: -Diagram showing the triple-layer "Business Model Canvas"(Toro-Jarrín, et al., 2016).

5. Development Plan of the Lean Startup
5.1. Marketing Plan
It has been noticed in this entrepreneurship development assignment that the entrepreneurs never strategize for a marketing plan at the very beginning of a business. Most of the business owners are unaware of the significant value of marketing to develop the business (Aguilar 2019). Marketing of the product could be conducted through advertising it over the TV channels, social media, or over the internet. However, it may fail. A lean startup marketing plan should include the following steps:

Plans	Description
Creating customer value	Decreasing the internal wastes and reducing the cost of the product. Along with that new services should be offered that will increase the value for customers(Ghezzi & Cavallo 2020).
Testing marketing ideas	Instead of focusing on bigger marketing strategies, it is useful to segment the marketing budget in different marketing ideas. It will provide the appropriate idea about which plan is attracting more customers.
Listening to the customers	Contacting with the real customers is an excellent strategy approach for marketing. It will help to make understand the actual need of the customers
Market research	Conducting market research will pull out the real picture of the business. It will also provide accurate projections about the business for the future. It is often stated as a time-consuming method. However, it is also considered as one of the most significant steps for successful marketing.
Target audience	The analytical result of the market research will provide adequate knowledge about the "target audience" of the business(Shepherd & Gruber 2020). It may include the demographics like age, gender, income, or social background of the audience. It always plays a significant role in marketing development.

5.2. Operational Plan The concept of "lean" is called as the focus of attention of a "lean startup" approach. It includes the manufacturing process, operational plans, and also the overall movement of quality. For the industries and organizations, principles of "lean" hold a significant value. The principles could be stated as the reduction of waste, improvement of products, quality management, and development of learning (Felin et al. 2019).In this entrepreneurship development assignment, it has been considered that the lean startup will result in "successful businesses." The operational plan should follow the processes that are stated below:

5.3. IT plan and Technical Solution
Herein entrepreneurship development assignment, information technology is one of the most significant parts of the lean startup. Implementing the technology could help the start-up in several ways from design to production and minimizing wastes. The IT system could be used for incorporating with the automatic error checking systems and improving the quality of the product(Dal Lago, Corti & Pedrazzoli 2016). Involving IT professionals for the improvement of the lean startup could enhance the business in several ways. Helping in project planning and identifying the strategies that may be used for addressing the processing problems. Along with that, IT could solve the technical issues that may arise before the product launches. Moreover, the IT plan must include collecting the data frequently regarding customer feedback to develop new ideas for the entrepreneur for the future development of the products. Coordinating strongly with the IT team, the entrepreneur could track the action items' status. moreover, The IT system needs to be designed in a manner so that it can identify and address any technical problems and issues during the first phase and recalibrate its effort across the essential field. For the mentioned reasons, proper IT planning is essential for the lean startup.

The other several IT plans include:

Designing and redesigning the products
Identifying new ways to deliver the value-added products to the with the new or redesigned products and also useful for sustainable development (Haseeb et al. 2019).
Developing the products with minimum viability with appropriate tests before the product launches.
Adapting plans from previous user data to modify the products

5.4. HRM Plan
HRM ("Human Resource Management") strategy defined in this section of entrepreneurship development assignment is the overall plan for the business for managing the "human capital" that matches the activities of the business. It includes hiring new employees, appraisal for performance, development, and compensating the employees if required(Bratton & Gold 2017). The HRM plan includes several strategies that are required to be implemented.

Staffing-It is a strategic plan development to determine the number of employees required to "lean startup." Based on the planning, the HRM should begin the hiring method for recruiting the right employees eligible for the job.
Policies for the workplace-The main role of the HRM is to develop the policies to reach the goals of strategic planning. It includes the security, safety, schedule for the employees. Moreover, the HRM should communicate strongly with the entrepreneur and other managers to discuss and develop strategic policies.
Benefits and compensation-The HRM should plan to develop several beneficial activities. It should include the health plan for the employees and compensation in case of any illness or injury of an employee within the workplace.
Employee retention-With deep discussion with the entrepreneur and other managers included in the business, HRM should strategize to assessing the employees and retain the best employees to achieve the business goal(Nankervis et al. 2019).
Development trainings-The strategy of a lean startup is hiring new employees instead of hiring experienced workers. It is a significant factor that the HRM should focus on. Developing the skills of the employees by arranging training programs is another critical responsibility for the HRM that should be performed by discussing the ideas with the entrepreneur.

6. Future developments and modificationon the Product
Directions for the lean startup future research is to explore the strategies that are implemented by the entrepreneurs within the various stages of development. These developments may be impacted by several factors like the maturity of the futures market, competitive strategies, and the development speed of the products (Yang, Sun & Zhao 2019). Several entrepreneurs were interviewed after explaining the principles about the lean startup to them.

It has been noticed in this entrepreneurship development assignment that mostly all of the entrepreneurs stated that the idea is excellent and interesting. This support shows that in the future days, more people will tend to apply the lean startup method (Racol?a-Paina & Andrie? 2017). In the future, researchers could perform the tests in which the result of the relationship between two types of cognition could be established. Several data may be collected with the longitudinal method which could shed light on the development of lean startup businesses. The researches may represent stronger evidence and support such as developing the executing stage with more efficiency and reducing wasteful practices to almost zero. Research activities could develop more effective logic in the next days for the entrepreneurs. Moreover, future researches could collect more from the other countries across the globe to provide better ideas for improving the lean startup. It could broadly push the activity of the entrepreneurs to become more scientific oriented coupled with new experiments. Along with that new tools may be developed in the next days to take the lean startup to the next level of success. ?

7. References
Aguilar, ALS 2019, 'Method for developing a marketing plan: A knowledge management tool for entrepreneurs'. Äyväri, A & Jyrämä, A 2017, 'Rethinking value proposition tools for living labs', entrepreneurship development assignmentJournal of Service Theory and Practice.

Bratton, J & Gold, J 2017, Human resource management: theory and practice, Palgrave.

Dal Lago, M, Corti, D & Pedrazzoli, P 2016, 'Turning a lean business model into a successful Start-up in the wearable technology sector: The case of Clara Swiss Tech', Workshop on Business Models and ICT Technologies for the Fashion Supply Chain, Springer.

Felin, T, Gambardella, A, Stern, S & Zenger, T 2019, 'Lean startup and the business model: Experimentation revisited', Forthcoming in Long Range Planning (Open Access).

Fernandes, SDC, Rosa, M, Queiroz, C & Rozenfeld, H 2018, 'An initial prototype of a tool for defining value proposition in the product-service system (PSS) design', DS 92: Proceedings of the DESIGN 2018 15th International Design Conference.

Ghezzi, A & Cavallo, A 2020, 'Agile business model innovation in digital entrepreneurship: Lean startup approaches', Journal of business research, vol 110, pp. 519-537.

Haseeb, M, Hussain, HI, ?lusarczyk, B & Jermsittiparsert, K 2019, 'Industry 4.0: A solution towards technology challenges of sustainable business performance', Social Sciences, vol 8, no. 5, p. 154.

Inomata, R, Kobayashi, N, Nakada, M & Shirasaka, S 2020, 'Proposal of Customer Value Consistency Canvas, Using an Ontology of Value Proposition with Service Dominant Logic', Review of Integrative Business and Economics Research, vol 9, no. 4, pp. 47-63.

Joyce, A & Paquin, RL 2016, 'The triple layered business model canvas: A tool to design more sustainable business models', entrepreneurship development assignmentJournal of cleaner production, vol 135, pp. 1474-1486.

Nankervis, A, Baird, M, Coffey, J & Shields, J 2019, Human resource management, Cengage AU.

Qastharin, AR 2016, 'Business model canvas for social enterprise', Journal of Business and Economiscs, vol 7, no. 4, pp. 627-637.

Racol?a-Paina, ND & Andrie?, AM 2017, 'Identifying entrepreneurship readiness for the application of the Lean Startup practices in the service industry–Case study Romania', Ecoforum Journal, vol 6, no. 3.

Shepherd, DA & Gruber, M 2020, 'The Lean Startup Framework: Closing the Academic–Practitioner Divide', Entrepreneurship Theory and Practice, p. 1042258719899415.

Siltala, N, Järvenpää, E & Lanz, M 2018, 'Value proposition of a resource description concept in a production automation domain', Procedia CIRP, vol 72, no. 1, pp. 1106-1111.

Sort, JC & Nielsen, C 2018, 'Using the business model canvas to improve investment processes', Journal of Research in Marketing and Entrepreneurship.

Toro-Jarrín, MA, Ponce-Jaramillo, IE & Güemes-Castorena, D 2016, 'Methodology for the of building process integration of Business Model Canvas and Technological Roadmap', Technological Forecasting and Social Change, vol 110, pp. 213-225.

Yang, X, Sun, SL & Zhao, X 2019, 'Search and execution: examining the entrepreneurial cognitions behind the lean startup model', Small Business Economics, vol 52, no. 3, pp. 667-679.

York, JM 2018, 'Putting lean startup into perspective: A novel approach for discovering and developing a successful business model', entrepreneurship development assignmentArch Bus Adm Manag.

8. Appendix
8.1Appendix 1
Primary and “Secondary” market Research
Robots can handle the radioactive elements and could perform tricks for repairing and maintaining the operations in the nuclear plant areas. It is highly risky for human beings to work with radioactive elements during severe radiation. In the present day, several humanoid robots have been developed for use in nuclear power plants.

The construction industry is emerging from many years and facing the challenges of the labor shortage. In the coming future, this shortage of labor will increase with time. Technologically developed countries are developing construction type robots to reduce these issues.

Market research in the USA was designed to check the likeliness and intentions regarding humanoid robots, the result was variable as some respondents were fearful of the robots and some were uncertain about the possible risks that may arise by using the humanoid robots.

Tags: it management critical analysis information technology

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