- Project Description
Describe the product
Apple watch is one of the latest innovations by Apple Company that seeks to merge technology with different aspects of health and fitness. The watch, which was unveiled in 2014, serves both the functional and fashionable roles and is organized in three separate collections (Carlson & Moren, 2014). The simplest form of this watch is the Sport and the most sophisticated collection of this watch is the high-end luxury edition. This is an indication that this watch was designed to appeal to an array of tastes. Apple watch has the ability to track movement through an inbuilt accelerator. In addition, the device can also track heart rate through optical sensors that are positioned at the back of the device. Other than the ability to track different movements related to bodily activities, the device also has the ability to extrapolate more data through the GPS. Prior to its launch, the device had already incorporated more than 19 health and fitness apps such Strava, Nike +Running, and the new mayo clinic app among other (Gleam, 2014).
Scope of the product- what does the product specifically include and exclude?
The scope of the Apple watch will be to serve its customers with a device that can track their movements in different proportions. For example, through the Apple Watch, it is possible for the organization to track movements of different clients in ways that help them in the improvement of their fitness and health conditions (Carlson & Moren, 2014). In addition, through the Apple Watch it will also be easier for the organization to emphasis on its clients the need to take personal responsibility on matters related to their health and fitness conditions. The Apple watch will also facilitate a process through which the organization can collect data on the fitness levels of different individuals (Gleam, 2014). This is because through its inbuilt sensors, the device will be able to collect data related to acceleration and heartbeat. This data can be used in the analysis is of the level of fitness of any individual (Carlson & Moren, 2014). The Apple watch does not however provide suggestions on the nest possible exercises that an individual can engage in to improve on their health standards. This is because through the inbuilt apps, the device only has the ability to recognize the areas of improvements in terms of physical activity.
What will the organization get for the money?
The incorporation of the Apple watch as part of the health and fitness program is bound to improve the reputation of the organization in terms of its ability to embrace the latest technology in the improvement of its services. This will be an indication of an increase in the population of clients. Apple watch will also provide clients with more information concerning the amount of energy consumed when undertaking different activities. For instance, the realization that the use of the Apple watch is about bung active throughout the day will help the clients in measuring all their ways of movement (Gleam, 2014). This includes movements such as walking the dog, playing with children. Through the device, the organization will also have a way of encouraging patients to keep moving especially when they are standing. This is an indication that through the Apple watch, patients will be kept on check when they are away from their medical practitioners.
Estimated cost of the project
The main aim of the project is to sensitize the public and the clients of the organization on the benefits of incorporating the Apple Watch as part of the fitness and health programs. The cost of this project is estimated at about 1 million dollars. This will cater for different expenses such as setting up of a medical facility that can be used in assessing the data generated by the Apple watch on clients, hiring qualified medical and technical staff to help in the process of analyzing and interpreting data. This way, the organization will ensure that their clients are able to understand and relate to the data generated. Additional expenses will be on the purchase of different equipment that is essential in the realization of the objectives of the project. These include printers, computers, furniture, and décor and office stationery. As the organization progresses and receives more clients, it may be necessary to expand its abilities in terms of the size of the number of machines and hiring or more employees. The organization envisions revenue of 1.5 million dollars in the first year of operations. This will be used in the payment of expenses that were made in the first years. The profits will be ploughed back into the organization to facilitate more expansion activities.
Schedule (construction start, construction completion and move-in)
The construction of the facility is scheduled to begin in May 1, 2015. This will be inclusive of the completion of the data center. Due to the small size of the center, the construction process is scheduled to end in August 2015 when all the facilities necessary for its operationalization will be installed. As at September 1, 2015, the data collection and analysis sector will be operational. This will provide Apple watch users with knowledge of a community data collection and analysis center which will be serving their health and fitness needs. In addition, through the functioning of this center it will be easier for the organization to incorporate the use of different approaches in ensuring that they intergrate data analysis with knowledge from a health and physical fitness instructor as a way of improving on the efficiency and effectiveness of the services provided.
Overview of the issue
The need to engage in the most effective health and fitness programs is a problem that characterizes the lifestyle of different individuals in the contemporary society. This has occurred because of the absence of facilities that can measure the amount of energy lost in any given activity. Apple watch is an innovation that endeavors to improve on the techniques through which different individuals are able to measure their energy levels and heart rates and acquire information on how to improve on different areas. An additional challenge in the case of Apple watch is the inability of some of its users to understand the data provided and use it in future health and fitness activities (Carlson & Moren, 2014).
These challenges necessitate the need for a data collection, analysis and interpretation center which will provide these individual with proper information concerning data generated from their watches. In addition, through the Apple watch it is relatively easier for the client to engage in effective and efficient health and fitness activities (Rich, 2014). The development of centers aimed at providing assistance to Apple watch users has been cited as discriminatory in the provision of health and fitness information. This has been criticized on the grounds that the project centers on a problem that exists among Apple watch users. In addition, through the provision of these services it will be easier for the organization to incorporate additional measures on how to measures and evaluate the heath standards of individual through the Apple watch (Rich, 2014). In this regarded, the watch serves as a perfect ground for learning aspects related to the activities that necessitate the development of knowledge in the area of health and fitness.
Why does the issue need to be solved?
The introduction of Apple watch as part of health and fitness program is an essential solution to the problems of those concerned with the degree of their physical fitness. This is because the watch is designed to provide personalized data concerning the levels of activities of its users. The technological ability of Apple watch to learn about the activity of its user allows for the effective and organized plan on how to conduct fitness exercise (Rich, 2014). For instance, the device will intergrate into its system the average level of activity of an individual. The data generated from this integration can be used in the suggestion of a daily move activity goal for the week that is relatively realistic and realizable. In addition, through an in-depth data analysis and interpretation, it will be possible for the users to adjust their activity goals in ways that provide the perfect exercise targets. The weekly check-ins, as provided by the data generated, can help individuals to be more active especially while making progress towards the realization of a health objective.
Historic/ projected growth of patients’ volume
In terms of the projected growth of patients in terms of volume, the data analysis and advisory facility, it endeavors to attend to about 40-60 patients a day. This translates to about a minimum of 14,600 patients in a year. However, this number is bound to fluctuate depending on different factors such as the price of the Apple watch and the economic times. However, irrespective of the prevailing economic conditions, 14,600 is the number of patient that a year who will seek advisory and interpretation of data services.
- Strategic Drivers
What is the main issue?
There has been frequents success in health and fitness centers. This has been attributed to the levels of consistency in terms of exercise and feeding on health foods. However, with the introduction of Apple watches into the health and fitness sector, there has been some level of improvement in terms of the accuracy in determining an individual’s fitness levels. This is because of the ability of the device to record data on the frequency and average levels of physical activity. In addition, it gives the user some level of responsibility in ensuring perfect health and fitness status. It is therefore important to develop centers that will provide a platform for data analysis, interpretation, and advice on areas of improvement.
How do you know it’s an issue? List all major issues
The major issue in the health and fitness sector is the determination of the most appropriate intervention to ensure stable health standards. This was previously exacerbated by the use of inaccurate and outdated equipment and tools in measuring health and fitness levels
Little machinery in the market was also available to ensure adequate measurements of different health and fitness concerns among patients form different backgrounds.
The available machinery was relatively expensive for all citizens to purchase and use as facilities of assessing their levels of fitness and health status.
The absence of machinery that could produce customized data findings that could be used in the assessments of the heart rhythm, acceleration and possible areas of improvements. In addition, the absence of machinery that could be adjusted in the process of determining the health and fitness standards of an individual also forms part of the issues necessitating the initiation of this project.
Why is this project a priority to the organization?
The main objective of integrating Apple watches as art of health and fitness programs is to ensure the provision of effective and efficient services to patients at a relatively lower cost (Lashinsky, 2012). This is because through the use of updated technological machinery it will be easier to determine the overall health conditions by understanding and interpretation data derived from the devices. Apple watch provides data on vital areas such as the heart rate and the levels of acceleration (Lashinsky, 2012). The process of engaging patients in constant exercise reduces the risk of contraction g chronic and lifestyle diseases such as cardiac arrest, hypertension, stroke and diabetes.
What are other health systems on the outside doing the same issue?
Numerous health care facilities provide affordable health care services while embracing different aspect of technology such as electronic caseload system. These include hundreds of community clinics within California. However, the introduction of a medical facility that seeks to analyses and interprets data from Apple watch is considerd as a unique idea that is not provided by any other organization. This makes the service more important especially to those in possession of Apple watches. The uniqueness of this service is attributable to the fact that most clinic in the state of California concentrate on the provision of immunization services, X-rays family planning and to some extent referrals to specialists.
- Project scope/Sizing
Description of project scope
The introduction of the Apple watch as part of the health and fitness program will help in boosting the provision of services. This is because of the availability of devices that can be used in the provision of accurate data that can be subjected into an analysis. In addition, through Apple watch apps, it will be easier for patients to self-administer individual care especially in an attempt to improve on their health and fitness levels. The data analysis and advisory centers will be located in California. However, with the improvements in terms of the number of patients and the rate of demand, the project will expand into their states while at the same time introducing an online platform through which interaction and data sharing can be enhanced.
Does this project add physical capacity (e.g. more beds, additional machines, additional space), and if yes by how much?
Just like any other medical facility the introduction of an integrated data analysis and interpretation system through the Apple watch will require additional machinery and space. This explains the reasons for constructing a new data center and the hiring or more employees. In addition, the project will necessitate the addition of more machines such as computers, the interest and office stationery
Does this project require an additional staffing or additional supplies above and beyond what is being spent now?
The project will require additional financial resource to facilitate the process of hiring and training experts in the field of information technology, and medical technicians who will provide services related to the data analyzed and interrelated. This will help the organization in ensuring effective operation and minimization of errors.
Add in charts or pictures if possible to help the reader see what it will look like?
- Option Comparison
Description of option- Are there several options that provide the same results?
Several options could have been used to produce almost similar results. They include Samsung Gear, Motorola Moto 360 and the Pebble Steel. These are smart-watches that have been produced by different companies to help in the provision of different services (Rich, 2014). Apple Watch was however the best alternative considering its ability to measure different aspects related to fitness and health. In addition, the target areas for this project were the United States where IPhones, which are the most compatible devices with Apple watches, are readily available (Spark, 2014).
Were there other options considered, but excluded and why
UP3, a device designed to monitor the heart rate was one of the options that was considered but excluded. UP3 is a device that is commonly used especially in the measure of heart rate among those with cardiovascular complications (Rich, 2014). Through this device, they are able to gather and interpret data. In addition, it is also a way through which they can make healthy life decisions. This device was however excluded since it only focuses on the heart rate at the expense of other aspects of fitness (Spark, 2014). The apple watch provides collects and gathers data concerning all the aspect of the body that are related to health and fitness. In addition, this device can also be customized into the user’s system in a way that will ensure that data provided is relevant to the routine activities of the user (Spark, 2014).
Can the organization contract out to another company versus buying?
The organization operates on the awareness that the process of initiating and executing business responsibilities is relatively tedious and requires high levels of motivation and expertise to ensure the realization of business objectives. This explains why the organization will construct and begin its business processes rather than contract it to an existing company. The desire of the organization is to benefit those with Apple watches on data analysis, interpretation and provision of advice relative to the data.
Can the project be leased versus purchased?
The projections of this business initiative indicate that it is highly profitable. This explains why instead of leading the business will purchase land for the construction of the building. Leasing may be advantageous considering that through this approach to ownership of property the initial outlay of cash to gain the use of an asset is generally less compared to purchasing (Groppelli & Nikbakht, 2006). Despite the presumed advantage, purchasing may be more advantageous considering that through this approach the buyer may end up paying less amount of money in the long term. In addition, purchasing of property upon which to erect the business premise may also be advantageous in terms of appreciation in value of the product (Pooler et al, 2004).
Being a new business it is possible to have the tendency of concentrating on short term factors such as first year cash flow projections as essential determinant on whether to purchase or lease property. Through the short terms perception leasing is often considered as the best alternative due to limited expenses involved in the entire process (Groppelli & Nikbakht, 2006). However, despite the outstanding differences it is also important to consider the possible effects of leasing or purchasing in the long term. This will involve asking questions on the possibility that the business will be able to stay on the leased or purchased property overtime (Pooler et al, 2004).
One of the long terms advantages that will require the business to purchase rather than lease land is the ability to control the property. This is because through the business proposed it may be important to introduce structural changes or renovation on the business premise (Pooler et al, 2004). If the business premise is owned by leasing then it would be necessary to acquire the permission of the owner of the property prior to the introduction of any changes. If however, the business owners purchase the property, they will have the powers to make changes without seeking any form of permission. This makes purchasing the best alternative compared to leasing (Groppelli & Nikbakht, 2006).
If the request is to buy equipment or a building, is the cost a good deal?
The desire of the business is to purchase land for the construction of a small business premise. This is a onetime investment that would be beneficial in the long term because the business will have room for expansion in case of any form of growth in the future. Since the business is relatively new in the market, all the equipments and tools that will be necessary for the operation of the business will also be brand new. The projected success of the business requires an in-depth investment in quality equipments. This is considered as a relatively cheaper alternative in the long-terms since re-buying used products would only require the business to engage in short term projects that focus on repair and purchasing of more equipment. The decision by the business to embrace technology as part of its system is an indication that it has the desire to provide its clients with the best services.
From the financial perspective, the initial cost that is to be incurred by the business includes construction, purchasing of equipments, hiring and payments of employees and payments for business permit. These expenses are relatively affordable despite the possibility that they may surpass the business budget of 1 million dollars. The market may be characterized by fluctuations in terms of prices of deferent products that are essential for the operationalization of the business. This will however be balanced in accordance with the budget,
- Financial Analysis
The process of starting a new business is relatively complex due to the availability of several factors that must be considered. These include the location of the business, the demand for the product or service, the target customers, and the amount of capital needed. The decision to open a data analysis, interpretation and advisory on Apple watch was due to a request by Apple Company and the healthcare facility to provide services on health and fitness to Apple Watch users. This is the first project within the United States and there is hope that the success of this project will lead to the development of more centers in different locations within the United States.
For this project, the estimated cost of the entire clinic will be one million dollars. This cost was arrived at through a determination of all the costs that the business is to incur. These include purchasing of land, construction and equipping the facility, hiring qualified employees and the installation of technological equipment. The cost of purchasing the small piece of land would cost about $100, 000. The business decided to purchase land instead of leasing due to the long terms benefits associated with the purchase of land. In addition, ownership of land allows the business to make structural changes whenever applicable without seeking the permission of the landlord. The long terms benefits of purchasing rather than leasing land are associated with the understanding that it is a relatively cheaper business approach in terms of expenses. The construction of the new business premise is envisioned to cost $150,000.
In terms of the equipment that the business endeavors to use in its operationalization, the business will purchase computers, office stationery, and installation of the interest and acquisition of the necessary software’s at $150,000. The business envisions hiring 2 technical experts, a receptionist, a laboratory technician and fitness experts who will provide the necessary services to the patients. The amount of salaries payable to each individual will vary depending on their level of qualification and job description.
As a partner with Apple Company and the health care facility, the business received full funding from Apple. This funding is however based on the understanding that the rate of expenditure will not be a onetime activity. This is because the business of operates on machines and human resource. It is possible for the human resource to require more reinforcements and this may necessitate hiring of more employees. In addition, machines that the business uses are susceptible to damages and repairs. The business may thereof need to handle recurrent expenditures as part of its financial plans. Recurrent expenditure often increase or decrease depending on the need for finances. However, after stabilization, the business is bound to experience lower levels of recurrent expenditure and higher profits margins.
The projections of the business indicate that the business will get a return of its investment in a period of one year. This is because of the potential market that exists and the ability of the target customers to pay for the services that the business offers.
If the project fails to be approved, the organization would lose in terms of business initiatives. Since there are numerous individual within the state of California who use Apple Watch for health and fitness purposes. These individuals often require some platform that allows for easy interpretation and analysis of data related to their health concerns. The business would be at a loss in terms of the number of potential customers who need the advice of experts in the field of data analysis and interpretation. The organization will lose many patients who would have used the facility in the realization of their health and fitness objectives. It would also be difficult for the business to expand its operations into other areas if it first initiative fails to be approved.
The business risks more loses especially in situations where another company purchases the land and initiates its own operations. The loss will rise from the understanding that the business will have lost in term of the strategic location that had previously been identified. In addition, the loss can also be associated with the possibility that the other company rolls out initiatives focuses on the use of Apple watches or fitness and health programs. This means that the business will have lost in terms of its competitive advantage in the market.
VII. Recommendation/ Request for funding
The main objective of the business is to begin by the purchases of land and the conditions of a site that is most suitable in addressing data analysis and interpretation concerns from those using Apple watch for health and fitness purposes. In addition, through this approach it will also be easier for the company. The main objective of the business is to ensure that by the beginning of September 2015, the business becomes operational. The realization of this objective will not only be beneficial to the business in terms of the profits generated, it will also be a platform through which different members of the society are able to seek assistance in terms of the provision of services that are beneficial to their health and fitness levels.
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