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Oasis Systems engineering sustainable water solutions Water Jogger Implementation Plan
Oasis Systems engineering sustainable water solutions
Water Jogger Implementation Plan
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Table of Contents 1. EXECUTIVE SUMMARY................................................................................................................. 4
2. NEED STATEMENT ......................................................................................................................... 5
3. MARKET ANALYSIS ....................................................................................................................... 5 3.1. CUSTOMER PROFILE: VERY POOR HOUSEHOLD ........................................................................... 5
3.1.1. Economics............................................................................................................................... 5 3.1.2. Water Usage ........................................................................................................................... 5
3.2. EXISTING ALTERNATIVES ............................................................................................................ 5 3.3. TARGET MARKET......................................................................................................................... 6
3.3.1. Mandalay................................................................................................................................ 6 3.3.2. Sagaing ................................................................................................................................... 6 3.3.3. Magwe .................................................................................................................................... 6
4. THE OASIS SOLUTION ................................................................................................................... 7 4.1. DESIGN................................................................................................................................................ 7
4.1.1. Wheels..................................................................................................................................... 7 4.1.2. Frame ..................................................................................................................................... 7 4.1.3. Handle Bar ............................................................................................................................. 7 4.1.4. Foot Bar.................................................................................................................................. 7
4.2. MANEUVERABILITY ..................................................................................................................... 8 4.3. MANUFACTURING ........................................................................................................................ 8
5. PRODUCT AND CUSTOMER ECONOMICS ............................................................................... 8 5.1. PRICING ............................................................................................................................................... 8 5.2. END-USER ECONOMICS ....................................................................................................................... 9 5.3. WATER-PRENEUR INVESTMENT RATIONALE ....................................................................................... 9
6. BUSINESS MODEL ........................................................................................................................... 9 6.1. VALUE CHAIN ............................................................................................................................ 10 6.2. MARKETING ............................................................................................................................... 10 6.3. BRANDING ................................................................................................................................. 11 6.4. TRIPLE BOTTOM LINE ................................................................................................................ 11
7. FINANCIALS.................................................................................................................................... 12 7.1. MARKET SHARE AND SALES ASSUMPTIONS ............................................................................... 12 7.2. COSTS ........................................................................................................................................ 12
7.2.1. Sales, General and Administrative ....................................................................................... 12 7.2.2. Other Operating Expenses.................................................................................................... 13
7.3. ECONOMIC RETURNS.................................................................................................................. 13 7.4. FUNDING REQUIREMENTS .......................................................................................................... 13
8. IMPLEMENTATION ...................................................................................................................... 14 8.1. RISKS ......................................................................................................................................... 14
8.1.1. Product ................................................................................................................................. 14 8.1.2. Market................................................................................................................................... 14
8.2. SIX-MONTH PILOT ..................................................................................................................... 14 9. ADVISORS........................................................................................................................................ 15
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10. APPENDIX ................................................................................................................................... 16 10.1. APPENDIX: SOCIAL RETURNS..................................................................................................... 16 10.2. APPENDIX: CUSTOMER ECONOMICS........................................................................................... 17 10.3. APPENDIX: CONSOLIDATED INCOME STATEMENT..................................................................... 21 10.4. APPENDIX: BALANCED SHEET ................................................................................................... 22 10.5. APPENDIX: CASH BUDGET ......................................................................................................... 23 10.6. APPENDIX: IMPLEMENTATION PLAN .......................................................................................... 24 10.7. APPENDIX: EXISTING WATER CARRYING DEVICES................................................................... 25 10.8. APPENDIX: PRODUCT TESTING.................................................................................................. 32
10.8.1. Feb. 2 ............................................................................................................................... 32 10.8.2. Feb. 17 ............................................................................................................................. 33 10.8.3. Feb. 28 ............................................................................................................................. 34
10.9. APPENDIX: SELECTED BRAINSTORMING SESSIONS ................................................................... 35 10.10. APPENDIX: TEAM MEMBER PROFILES .................................................................................. 41
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1. Executive Summary
Oasis Systems engineers sustainable water solutions for the developing world. Currently, Oasis is tackling the water transportation problems in Myanmar. The Oasis solution, the Water Jogger (inspired by the joggable baby stroller, or “baby-jogger”) is a robust, off-road capable cart that allows the customer to transport more water, faster. Capable of carrying up to 60 gallons of water in 5 gallon containers, the Water Jogger far exceeds current solutions in both speed and capacity while requiring a lower physical effort. While the Water Jogger is aimed at being a tool for water entrepreneurs to transport large amounts of water for sale, it also is an excellent personal water transportation solution for families. What is it like now...
Can you imagine being responsible for all of your farm’s water needs and having to carry 10 gallons of water at a time over rough terrain? Sounds like back-breaking work …and it is. Day after day many people of Myanmar and neighboring countries have to spend a good portion of their day foraging for water tor their familes and their crops. Oasis Systems is commited to delivering a sustainable engineering solution that can help to ease the strenuous burden of daily water transportation. It is our fervent hope that we can change lives for the better. Oasis Systems approaches the need for effective water transportation solutions with an appreciation for the three tiered impact we hope for:
social environmental
+ economic
TRIPLE BOTTOM LINE Oasis Systems invites you to join us to make the world a better place. We are looking for first round funding in the amount of $275,000.
80 pounds 2-4 miles < $1 a dayWeight of water carried on back Distance to water source Average income per household
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2. Need Statement There exists a significant unmet need to efficiently move substantial amounts of water from consistent water sources to the citizens’ respective locales. Oasis Systems’ mission is to bring to the Myanmar market an effective means of transporting significant amounts over a few kilometers. The Water Jogger is a robust, all-terrain cart capable of cost-effectively transporting more water faster than current solutions permit.
3. Market Analysis
3.1. Customer Profile: Very Poor Household The very poor household in Myanmar (which includes approximately 15M people, or nearly 30% of total population) does not have regular access to water sources (regular access is defined as a water source within 1000 feet of a homestead). The typical poor household comprises of 5-7 individuals and reside in villages of around 150 households. Villages in Myanmar are traditionally clustered in groups of 5-6 around a central, large town.
3.1.1.Economics Very poor households generally derive their income from farming and the services industry, and average daily incomes of 800-1000 kyats ($1 = 950 kyats). Labor rates for men, women, and children vary with proficiency, but men generally earn 700-900 kyats, women 300-500 kyats, and children 200 kyats for a day’s work; however, the realization of these wages is largely dependent upon securing work. The very poor household can be differentiated from the poor household (~2000 kyats/day), which oftentimes features medium-skilled laborers (in manufacturing). Taking into account expenses (food, shelter, and incidentals) over the course of the month, the average Myanmar family has 4000 kyats (130 kyats/day or $4.20/month) of disposable income.
3.1.2.Water Usage Households typically utilize 10G water daily for drinking and domestic purposes. This water comes from water sources (tube wells, hand-dug ponds, or stop dams) on average 2-4 miles away and is fetched on a daily basis. Depending on the time of year, this translates into 1-2 hours a day spent fetching water; due to the extreme temperatures of the Dry Zone, water collection activities must be restricted to dawn and dusk times (~4 hours/day). Water pumped from tube wells costs 1 kyat/gallon of water, which villagers readily pay. Additionally, a water market has also been established in Myanmar, with ox-cart owning entrepreneurs charging 3-4 kyats/gallon for water delivered to the village center.
3.2. Existing Alternatives Current solutions for water transport and key metrics can be seen in Figure 1. Status quo is dominated by a simple yoke-and-buckets transportation solution. A physically demanding transportation mode, this method is extremely inexpensive but requires a daily investment of 1-2 hours. On the other end of the spectrum, the ox-cart is a fast, capital-intensive method of moving water; although there is a 26 month breakeven period and ongoing costs of taking care of livestock, each trip can yield enough water for a week. The Hippo Roller is a solution that has enjoyed success in South Africa due to the ease of Figure 1: Oasis Solution versus Existing
Alternatives
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use; unfortunately, the low capacity and prohibitively high cost make this solution unattractive to Myanmar. The Water Jogger combines the best attributes of all these solutions, resulting in a fast, cost-effective solution leveraging the abundance of labor in Myanmar. In short, the Jogger achieves the capacity and speed of the ox-cart without the excessive price tag.
3.3. Target Market There exists a particularly high concentration of very poor households in the Dry Zone, which comprises three centrally-located states in Myanmar with extremely arid climate. The 8000 villages in Mandalay, Sagaing, and Magwe house approximately 13M people in dire need of an efficient means of water transportation. Figure 2 highlights the target markets and some key metrics.
3.3.1.Mandalay Mandalay has by far the highest population (7.5M in 4,000 villages) and population density (534/mi2). The most developed manufacturing sector in the Dry Zone resides in Mandalay; accordingly, it will be the production site for the Water Jogger. Additionally, the flat terrain of Mandalay also boasts the most developed road network (both dirt/gravel and paved) as well as the lowest density of water sources. With the largest target population, the largest unmet need, and a developed infrastructure amenable to the Water Jogger, Mandalay is the logical market entry point for Myanmar.
3.3.2.Sagaing Featuring the most uncultivated farmable land in country, Sagaing is projected to be the area of fastest growth in Myanmar. This coupled with being the second most populous area in the dry zone (5.9M in 2,500 villages) makes Sagaing a natural second market for Oasis Systems. Additionally, the rockier terrains of the state make for excellent testing conditions for the beta product. Again, a rapidly developing network of crude and finished roads will greatly ease the introduction of the Water Jogger into the region.
3.3.3.Magwe The least populous state in the Dry Zone (5.1M in 1,500 villages), will be the third target site for Oasis Systems. Magwe features very homogenous, flat terrain and a high density of water sources (primarily stop dams and tube wells), making it very amenable to the Jogger solution. While the state has the least developed road network in the Dry Zone, concerted efforts are being made towards increasing connectivity in rural areas. Magwe boasts the fast developing road network in the Dry Zone; between 2002-2003, miles of road available to the public nearly tripled.
Figure 2: Target Markets
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4. The Oasis Solution The Water-Jogger, the first product designed by Oasis Systems, meets the needs of the people of Myanmar. It is a steel frame cart capable of carrying over three hundred pounds of water in existing modular storage containers. The design (Figure 2) is elegant and simple, optimized with the simultaneous goals of low cost, high capacity, useful features, and high reliability. No product currently on the market in Myanmar can bear the weight of fifty-five gallons of water for $20 of cost.
4.1. Design
4.1.1.Wheels The Water Jogger has three bicycle wheels in a triangular arrangement with one wheel in the front. This arrangement is far less fatiguing than a two-wheeled cart. Each wheel attaches to a plate section of steel on each side of the wheel. The plate has a slot that allows the wheel to slide in without disassembling the wheel, much like quick release bicycle wheels. If a tube were used instead of a plate, the force of the bolt used to attach the wheel to the frame would buckle the frame and the wheel would become loose or break off. The current design uses a standard mountain bike wheel in front, and smaller mountain bike wheels in the back. The design could be easily modified to accept the larger wheels in the rear by narrowing the platform or by increasing the width of the frame.
4.1.2.Frame The welded steel frame connects the wheel mounting plates and a handle and foot bar. The existing prototype has a tube between the two rear wheels and two parallel steel tubes, one on each side of the front wheel. This allows the front wheel to tilt slightly when the user pushes the cart harder on one side. In this manner, a gentle turn is achieved without needing to lift the front wheel.
4.1.3.Handle Bar The handle bar provides a comfortable place to push the Water Jogger. It is also placed such that one can push down and back on it to lift the front wheel (Figure 4). In the same way that a common grocery shopping cart makes walking easier, the placement and size of the handle bar reduces the effort needed to walk.
4.1.4.Foot Bar The foot bar provides a stop to prevent the cart from tipping backwards, as well as a place to push down and forward for tilting, and occasionally a place to stand. Before the cart tilts backwards so far that it is dangerous to the user or the items loaded on the platform, the foot bar contacts the ground, preventing further tilting. Placing one foot on the ground and one of the foot bar provides additional leverage to tilt the cart when lifting the wheel for a pivoting turn. If the load is placed near the front wheel, standing on the foot bar will not cause the front wheel to lift. This is an advantage on a downhill or long straight road. On the downhill pulling backwards on the handle bar will not cause the front wheel to lift off the ground. While on a long straight road with the load nearer the front wheel, the Water Jogger functions similar to a kick scooter. It is possible to stand on the foot bar and push off the ground to move forward. This push and coast action can be quite efficient and fast.
Figure 2: The Water Jogger
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$20
$0
cost of goods
manufacturing$15
$16.50$17.25
transportationretailer fee
oper. margin
Steel
wheels and tires
inner tubes
steel for frame
$0
$8
$11$12.50
$20
$0
cost of goods
manufacturing$15
$16.50$17.25
transportationretailer fee
oper. margin
Steel
wheels and tires
inner tubes
steel for frame
$0
$8
$11$12.50
4.2. Maneuverability Though visually simple, the location of the wheels, platform, handlebar, and foot bar are designed in positions to allow relatively small effort to carry an enormous mass of water. The Water Jogger can be thought of as a teeter totter when tilting (Figure 4). The two rear wheels contact with the ground forms the pivot, each water container (or other payload) forms the center of mass. The center of mass should be positioned between the front and rear wheels, but quite close to the rear wheels to
maximize the maneuverability. This allows a small force down and or back on the handle bar to cause the cart to pivot about the rear wheels. The addition of the foot bar increases the leverage and makes it even easier to pivot. About 30 pounds of total force exerted with a combination of feet and arms can tilt over 300 pounds of load in the cart. Once the Water Jogger has been tilted and the front wheel lifted off the ground, it is very easy to rotate the cart and turn it or maneuver it even on a trail or in a crowded city street.
4.3. Manufacturing The manufacturing of the Water Jogger is technically feasibly within Myanmar. In fact, the tolerances and processes are less difficult than many used to build the treadle pumps currently manufactured there. The required equipment and skills to manufacture this product are basic welding and metalworking. With some planning and quantity it should take far less time than the six man hours (three master welder, three assistant) it took Oasis Systems to build the existing prototype.
5. Product and Customer Economics
5.1. Pricing The largest cost-category for Oasis is the cost of good sold; materials represent more than 62% of total cost to the consumer, and labor approximately 13% (Figure 4). Fortunately, retail and manufacturing margins are relatively small in Myanmar, and intense competition exists that can reduce margins to less than 3% of the cost. To be conservative, Oasis Systems assumes both the manufacturer and retailer receive a 5% margin of the Water Jogger’s cost at their various stage in the supply chain. Oasis Systems has also included transportation into the unit costs, and have modeled it as a flow-through cost-item. Rsearch suggests that manufacturers generally pay for the cost of transporting items to retailers. Including these various costs, and assuming a final target price to consumer of $20 (19,000 kyats), Oasis should achieve a 9.4% margin.
Figure 4: Water-Jogger Cost Components
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Revenue Assumptions for EntrepreneurDistance from water source to house (miles) 4.0 Time/mile (min) 15.0 Time savings (min) 5.0 Round trip time w/ solution (min) 80.0 Number of hours worked per day 4.0 Number of trips/ day 3.0 Capacity per trip (gallons) 55.0 Total volume moved/day (gal) (after) 165.0
Transportation premium/ gallon (current/ Low) (Kyats) 2Transportation premium/ gallon (High) (Kyats) 3
Income generated per day (low) 330.0 Income generated per day (high) 495.0
4.75 2000 3000 4000 5000 600010 4.8 3.2 2.4 1.9 1.6 12 5.7 3.8 2.9 2.3 1.9 14 6.7 4.4 3.3 2.7 2.2 16 7.6 5.1 3.8 3.0 2.5 18 8.6 5.7 4.3 3.4 2.9 20 9.5 6.3 4.8 3.8 3.2 22 10.5 7.0 5.2 4.2 3.5 24 11.4 7.6 5.7 4.6 3.8 26 12.4 8.2 6.2 4.9 4.1 28 13.3 8.9 6.7 5.3 4.4 30 14.3 9.5 7.1 5.7 4.8
Disposable Income (Kyats/ month)
Fina
l cos
t of O
asis
Sys
tem
The viability of these assumptions will be tested during the pilot project and appropriate adjustments made.
5.2. End-User Economics The Water-Jogger’s business design is based on an entrepreneurial model; households looking for more consistent income would purchase the Water-Jogger and use it to generate income through water delivery. Given the existing water market (based on ox-carts) in Myanmar, Oasis Systems does not anticipate issues relating to the foreignness of the concept. Under current conditions, families who purchase water in the village pay 2-3 Kyats/gallon in addition to the 1 Kyat/gallon for the water itself. A water-preneur using an Oasis system would continue to charge similar prices, i.e., 2-3 kyats/gallon transportation fee.
5.3. Water-preneur Investment Rationale The water-jogger must generate economic returns for the user to be a viable product. Economic returns to users can be defined both in terms of potential income to the entrepreneur as well as the time required for payback of the initial investment costs. Based on an average villages distance to the closest water source and time available to collect/deliver water (4 hours/day available), the Water Jogger can generate ~300-500 kyats/day for the water-preneur. A more comprehensive
analysis can be seen in Table 1. The payback for the entrepreneur was calculated based on average disposable household income for a family in Myanmar, and comparing it to the target final retail price of the Oasis Water-Jogger. Based on these income assumptions and our estimated retail price of US$20 (19,000 Kyats), the average entrepreneur should be able to re-
coup the investment cost within 4.8 months (see Table 2 for sensitivity
analysis). Even with regional labor market differences and additional miscellaneous expenses incurred by a family that would decrease total disposable income, the Water-Jogger will pay for itself within 8 months.
6. Business Model Oasis Systems is a for-profit enterprise centered on core competencies in design and distribution. While a non-profit structure is also a possibility, desires for sustainability and scalability of the Figure 5: Oasis Organizational Design
Table 1: Water-preneur Income Generation Assumptions
Table 2: Payback Sensitivity
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enterprise calls for generating real returns and economic accountability. Additionally, this model allows for the vindication of the for-profit concept for the “bottom of the pyramid” market to others, hopefully spurring more innovation in this space.
6.1. Value Chain In order to minimize costs, leverage local expertise, and spur job creation, Oasis Systems is to be largely based in Myanmar. Locating manufacturing, marketing/sales, and distribution in Myanmar will allow Oasis Systems to plough profits back into the local economy. More specifically, manufacturing will be done through an in-country joint venture or sub-contracting relationship. To maintain high quality production, considerable due diligence will be done to identify appropriate local partners. In particular, the manufacturing base in Mandalay is sufficiently developed to meet our needs and Oasis has started the process of screening local partners. Marketing, distribution and sales will also be in country through partnerships or local representatives. Of course, Oasis Systems recognizes its relative inexperience in this arena and will depend heavily on local contacts such as Jim Taylor and the IDE team. Additionally, Oasis has also initiated talks with the Dry Zone Greening Department, a collection of Asia-based NGOs involved in water source development with significant distribution capabilities in Myanmar. Finally, product development for design refinements and potential add-on products will initially remain at Oasis’ offices in the US. All subsequent development will be done through design teams located in Myanmar. This strategy is oriented towards both reducing operation costs while leveraging the designers’ proximity to the end user.
6.2. Marketing Given the difficulties of operating in Myanmar, marketing is huge potential challenge. The lack of reliable infrastructure or national media channels presents a major obstacle. However, the fragmented market provides a substantial opportunity for us to capture a dominant position. The locally executed marketing effort will revolve around a labor intensive village-to-village model. Because the cities are spread out across numerous villages, our marketing and sales agents will need to spend considerable time visiting the local villages to discuss the product, ensure that appropriate placement of the Water Jogger at retail establishments, and answer any questions that are generated in the field. Oasis plans to employ a large number of salesmen with local knowledge and relationships to bring our product directly to the people on the ground. The marketing model assumes traveling salesmen will spend an average of seven days in each cluster over the course of a year. These sales/marketing people will spend the majority of their visits performing product demos and orchestrating a free “try before you buy” one day loaner program. It is worth noting that in such a labor-intensive marketing push, there will be a great deal of overlap between sales and marketing; as such, salespersons will primarily do in-village promotion and sales and marketing persons (outnumbered by salespersons) will be higher-level managers organizing the salespersons. The sales persons have been placed in very close contact with the end-customer, as opposed to focusing primarily on the intermediary channels. Direct contact with the cart will lower customers’ fears about a new product and the loaner program will allow the innovative cart design to market itself. Additionally, as sales people spend multiple seasons on the ground, they will not only develop credibility in the area for the Oasis brand but also be a great source of information for performance and design. The salespeople will be a key asset of the organization, providing both sales and knowledge transfer in both directions.
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6.3. Branding As Oasis Systems grows, it recognizes the importance of brand identification and protection. Oasis products will be branded through a highly visible display on the product itself. This will serve to provide authentication and communicate the value of the product above all others. While brand will be an important aspect of our product, Oasis does not intend to pursue a patent or trademark process. Operating in a developing country, where legal protections can be hard to enforce, does not make the cost of pursuing such protections worthwhile. However, by creating and utilizing a difficult to produce brand (such as a watermark or hologram sticker), Oasis Systems believes it can create meaningful protection in the marketplace without necessitating government involvement.
6.4. Triple Bottom Line Oasis Systems will operate with a triple bottom line approach to provide returns for its customers and investors on many fronts. In addition to financial returns, Oasis strongly emphasized maintaining high metrics on both environmental and social returns. Oasis Systems will be a sustainable, profitable business in a short time (breakeven in 5-6 years) with minimum initial investment (less than $400k over 5 years). With relatively little start-up capital, Oasis can grow to scale and generate substantial returns by serving the bottom of the pyramid markets throughout Myanmar (see Financial discussion below). The environmental returns will be generated by better water management and use of sustainable materials. The Water Jogger supports the Dry Zone Greening Department’s efforts by contributing to the efficient water distribution system. The Water Jogger does not produce any waste or deleterious emissions. Finally, by establishing a more efficient water distribution system throughout the region, the Water Jogger can substantially improve the water management practices for entire divisions in Myanmar. The social returns are immense. Today, water-preneurs are not able to meet the burgeoning demand for water delivery in villages throughout the Dry Zone. The Water Jogger brings efficiency to individuals using ox-carts by allowing water-preneurs to transport more water with a lower overhead. In lowering the investment cost to enter the water business in Myanmar (i.e. $20 for the Water Jogger as opposed to $100 for ox-cart), Oasis Systems will help grow the supply to eventually meet demand. While ramping to meet this demand, newly-christened,water-preneurs will generate $11-35 million of income. Additionally, there will also be considerable opportunities for employment through the local manufacture of the Water Jogger and the Water Jogger repair market that will subsequently follow.. Finally, the true beneficiaries are the consumers, who will have gained substantial free time through the purchase of delivered water.
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Headcount
-
5
10
15
20
25
1 2 3 4 5 6
Marketing Sales General & Administrative (Headoffice)
Penetration Rates By Region
0.0%2.5%5.0%7.5%
10.0%
1 2 3 4 5 6
Magwe Sagaing Mandalay
Number of Villages Total HouseholdMagwe 1,500 225,000 Sagaing 2,500 375,000 Mandalay 4,100 615,000
7. Financials
7.1. Market Share and Sales Assumptions Oasis targets 3 divisions in the Dry Zone: Mandalay, Sagaing, and Magwe. For the purposes of this section, the household is the relevant unit of analysis as the water-preneur will be selling water to households for family consumption as opposed to personal consumption (see Table 3for household statistics)
Oasis has targeted penetration rates of up to 10% in Magwe and Sagaing with five-years of operations. A lower
penetration rate of 7% will be more likely in the end-state for
Mandalay because of fiercer competition from alternatives such as ox-carts and copy-cat products will be developed more quickly (Figure 6). Based on these dynamics, Oasis will first enter Mandalay, followed by Sagaing in year 3, and Magwe in year 4. The aforementioned end states in each market are reached via logarithmic growth; Oasis expects minor sales for the first year in Myanmar, and then significant penetration in subsequent years due to word-of-mouth buzz and fully operational and more effective sales/marketing efforts. Finally, due to the delayed entry into Sagaing and Magwe, Oasis expects to reach only 6.1% and 7.7% penetration in the two cities respectively by year six of operations.
7.2. Costs
7.2.1. Sales, General and Administrative Oasis’ operating costs consist primarily of the salaries associated with head-office personnel, and the marketing and sales staff. We anticipate 5 full-time personnel including the Chief Executive Officer, the Chief Financial Officer, the Chief Marketing Officer and two engineers. One engineer is designated as the Chief Technology Officer and is responsible for product innovation and relationship management of our joint-venture/outsourced manufacturing partners. These officers will be paid competitive local rates. Up to 3 of these officers will be ex-patriots and the salary scale reflects these assumptions. On the sales and marketing front, Oasis expects to require 3 sales persons for every 1 marketing person (see Appendix). In addition to the salaries associated with the marketing and sales person, we have also budgeted 1.7% of total retail costs for the development and production of marketing materials. By year 6, Oasis expects to have 36 full-time employees (Figure 7). However, salary expenses will remain relatively flat as most employees will Figure 7: Headcount by Function
Figure 6: Penetration Rates by Region
Table 3: Estimated Household Figures by Region
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0200400600800
100012001400160018002000
1 2 3 4 5 6
Mandalay Sagaing Magwe
15330
720
1400
1100
1710
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1 2 3 4 5 6
Mandalay Sagaing Magwe
15330
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1400
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$100k$275k
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140
(20)
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360
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$100k$275k
be local. While their salaries are quite low relatively to the managers and personnel in head-office, we are still paying them wages that compare quite favorably to the per capital income (from 1.5x to 2.2x the average per capital income of US$320). General expenses related to operations have been budgeted at 2% of gross unit sales. This includes the costs of administrative expenses, office equipment, software, insurance, and legal services.
7.2.2. Other Operating Expenses Oasis will leverage the infrastructure of manufacturing partners to minimize fixed costs. Other key operating costs include rent and electricity and development costs relating to product design and testing (2.5% of sales) (see appendix).
7.3. Economic Returns Oasis unit sales are expected to grow quickly after year 2. By year 6, Oasis will generate US$1.7mm in revenues with additional growth projected in both Sagaing and Magwe as they reach full penetration rates (Figure 9).
7.4. Funding Requirements Oasis will require net investments of $375,000 to remain cash flow positive (Figure 10); after 6 years of incubation, Oasis systems becomes operating cash flow positive. Investment is structured as 2 tranches with the first for $275,000, which includes the 6-month pilot costs of approximately $85,000. In year 3, Oasis will require an additional $100,000 investment as it enters into its second market (Sagaing). Given the political environment, it would be advisable that all investments be made through equity. No debt or other borrowings are assumed in the financial model.
(150)
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Figure 9: Projected Revenues Figure 8: Operating Income ($000s)
Figure 10: Net Cash Flow and Funding Requirements
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8. Implementation
8.1. Risks We have identified two main areas of risk: product and market. Within these broad categories there are a number of defined risks, including competitive, execution, and macroeconomic risks.
8.1.1. Product Within the product category risk points include competition and design. Why is this product not currently available? We believe the sufficiency of the current solution (which is adequate but not optimal) and lack of investment in these markets has slowed the pace of innovation, creating an excellent opportunity for the Water Jogger. Additionally, alternative solutions do currently exist, as outlined in the competition section. Product risks also include the reliability and adoption of our design. While the current Water Jogger has thus far proven to be a reliable product, it has only been tested for a three-week period in the US. We acknowledge this does not fully represent the stresses the product will endure over a five year life-cycle in Myanmar and look to continually improve upon the product while in Myanmar. Secondly, the quality of production materials and manufacturing of potential manufacturing partners in Myanmar is as of yet untested. There will be a significant ramp period as we identify reliable partners with the highest quality materials.
8.1.2. Market Local conditions will also influence the success of this venture. The Water Jogger was specifically designed around the existence of a reliable water source relatively close to the end consumer. Even though this assumption is based upon feedback from a number of Myanmar experts, confirming this locally will be a key to success. While the product is still amenable to water sources further away (i.e. > 10 miles), the ability to make fewer trips in a day would greatly diminish its attractiveness. Adoption is another potentially serious issue. Water transportation remains virtually unchanged in the last century; the introduction of a new, cart-based transportation method may at first be slow to adopt. Lastly, it is worth noting in we will be operating in Myanmar and must recognize the potential difficulties with both US and local government officials. As Myanmar continues to endure political instability, remaining cognizant of the local political climate will be critical. Fortunately, local contacts have assured us of an unofficial manufacturing sector that helps in managing these risks.
8.2. Six-Month Pilot To mitigate earlier mentioned risks, the next six months will be spent piloting and testing the Water Jogger directly in Myanmar. Oasis Systems looks to distribute one hundred Joggers to potential customers and receive real-time feedback to test our hypotheses about performance and adoption rates. In country prototype tests will be held in all three potential markets. These tests will finalize product specifications and target community identification. Additionally, being on the ground in Myanmar will help complete our regulatory review and eliminate noted risks of the local government reaction. As the product testing unfolds, we can also begin identifying local partners. Field testing will help evaluate the quality of local materials and manufacturing practices. This process can only be done successfully on the ground in Myanmar. Finally, we believe the final steps of our due diligence process will be the production and distribution of a pilot process batch of 1000 units. This will allow us to refine the model projections for both costs and sales. It will provide us with vital final information about local markets and the reliability of partners throughout the value chain. (See appendix for details)
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9. Advisors JIM TAYLOR, IDE Myanmar PAUL POLAK has for the past 19 years, worked as President of International Development Enterprises (IDE), an organization he founded in 1981. IDE has pioneered the development and rural mass marketing of affordable technologies through the small enterprise private sector in developing countries. Dr. Polak received is MD from the University of Western Ontario, London, Canada, and practiced psychiatry for 23 years. Prior to founding IDE, Dr. Polak served as Executive Director and Founder of the Southwest Denver Community Mental Health Center in Denver, Colorado. JACK KELLER is Professor Emeritus, Biological and Irrigation Engineering Department, Utah State University, and CEO and founder of Keller-Bliesner Engineering. He has a distinguished professional career as a researcher and consultant in trickle and sprinkle irrigation systems, and has provided advisory services in irrigation technology transfer to over 50 countries worldwide. He has extensively authored academic journal articles and books, including a key textbook on irrigation technology used by university irrigation engineering students in developing and developed countries. Among his many distinguished professional awards, Dr. Keller has been elected to the National Academy of Engineers. Dr. Keller currently manages his own international consulting firm and travels extensively to assist government, private sector, and NGO institutions in the planning, design, and transfer of irrigation technology. PAUL, Arrowhead Water Delivery Guy:
Wendy Wood, Executive Director Friends of Africa Foundation and Masters Student, Human and Community Development Wendy Wood is currently the Executive Director of Friends of Africa Foundation, a non-profit organization that supports development work in rural African communities bordering conservation areas in East and Southern Africa. Prior to her position at Friends of Africa Foundation, she worked for the Africa Foundation in Johannesburg and for Conservation Corporation Africa at Phinda Private Game Reserve in Kwa-Zulu Natal South Africa. She has a degree in English from Western Washington University and is a candidate for her M.S. in Community Development from U.C. Davis.
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10. Appendix
10.1. Appendix: Social Returns Table 4: Incremental Income Generated Through Water-preneur Model
Total Incremental Income Generated [Low]
-
1,000.0
2,000.0
3,000.0
4,000.0
1 2 3 4 5 6
Magwe Sagaing Mandalay
Table 5: Incremental Income Generated Through Water-preneur Model
Total Incremental Income Generated [High]
-2,000.04,000.06,000.08,000.0
10,000.012,000.0
1 2 3 4 5 6
Magwe Sagaing Mandalay
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10.2. Appendix: Customer Economics
Units sold
-
10
20
30
40
50
1 2 3 4 5 6
Uni
ts (0
00s)
Mandalay Sagaing Magwe
Figure 11: Products Sold by State
Headcount
-5
101520253035
1 2 3 4 5 6
Num
ber o
f Oas
is
Em
ploy
ees
120125130135140145150155
Sala
ry E
xpen
se ($
000)
Local Foreign Total salary expense ($000)
Figure 12: Headcount Evaluation
Marketing SalesWeekly visits/ village cluster / year 0.25 1.00 Villages clusters visited/ person/ year 200 50 Managers/ representative 0.17 0.17 Total headcount at capacity (varies by region) 2 - 5 7 - 20Salary per person (Kyats/ year) 456,000 684,000 Salary per person (US$/ year) 480 720 Materials costs (as % of retail costs) 1.7% n/a Table 6: Marketing and Sales Cost Assumptions
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Table 7: Magwe Income Statement Note: Does not reflect the actual start date of Oasis operations in Magwe
1 2 3 4 5 6Penetration Rate 3.00% 3.87% 6.13% 7.74% 8.98% 10.00%Captured market (Kyats) 128,250,000 165,379,575 262,120,425 330,759,150 383,999,482 427,500,000 Units sold 6,750.00 8,704.19 13,795.81 17,408.38 20,210.50 22,500.00
Costs of Goods SoldMaterials (Kyats) 11,875.00 80,156,250.00 103,362,234.43 163,825,265.57 206,724,468.87 239,999,676.08 267,187,500.00 Manufacturing costs (Kyats) 2,375.00 16,031,250.00 20,672,446.89 32,765,053.11 41,344,893.77 47,999,935.22 53,437,500.00 Shippping (Kyats) 1,425.00 9,618,750.00 12,403,468.13 19,659,031.87 24,806,936.26 28,799,961.13 32,062,500.00 Retail distribution (Kyats) 712.50 4,809,375.00 6,201,734.07 9,829,515.93 12,403,468.13 14,399,980.56 16,031,250.00 Total costs of goods sold 110,615,625.00 142,639,883.52 226,078,866.48 285,279,767.04 331,199,552.99 368,718,750.00
13.8% 13.8% 13.8% 13.8% 13.8% 13.8%Fixed costsHead office item 1Rent & electricity (rent per month) ($) 100Rent & electricity (rent per year) (Kyats) 1,140,000 1,140,000 1,140,000 1,140,000 1,140,000 1,140,000 1,140,000
Marketing CostsMarketing materials costs (Kyats) 2,797,775 2,797,775 4,434,368 5,595,550 6,496,232 7,232,143 Marketing headcount 0.5 0.75 1.00 1.25 1.50 2 Marketing salaries (Kyats) 228,000.00 342,000.00 456,000.00 570,000.00 684,000.00 798,000.00 Total marketing costs 3,025,774.77 3,139,774.77 4,890,368.09 6,165,549.53 7,180,231.83 8,030,142.86
SalesSales headcount 4 2 3 4 5 6 7 Sales salaries (Kyats) 1,368,000.00 2,052,000.00 2,736,000.00 3,420,000.00 4,104,000.00 4,788,000.00
SG&AHeadcount 5 5 5 5 5 5 5Salaries (Kyats) 123,500,000 123,500,000 123,500,000 123,500,000 123,500,000 123,500,000 123,500,000 General expenses (as % of sales) 1.5%General expenses (Kyats) 2,480,694 2,480,694 3,931,806 4,961,387 5,759,992 6,412,500 Total G&A expenses 125,980,694 125,980,694 127,431,806 128,461,387 129,259,992 129,912,500
Development costsDevelopment as % sales 2.50%Materials for development ($) 4,134,489 4,134,489 6,553,011 8,268,979 9,599,987 10,687,500
19
Table 8: Sagaing Income Statement Note: Does not reflect the actual start date of Oasis operations in Magwe
1 2 3 4 5 6Penetration Rate 2.50% 3.87% 6.13% 7.74% 8.98% 10.00%Captured market (Kyats) 178,125,000 275,632,625 436,867,375 551,265,250 639,999,136 712,500,000 Units sold 9,375.00 14,506.98 22,993.02 29,013.96 33,684.17 37,500.00
Costs of Goods SoldMaterials (Kyats) 11,875.00 111,328,125.00 172,270,390.72 273,042,109.28 344,540,781.44 399,999,460.13 445,312,500.00 Manufacturing costs (Kyats) 2,375.00 22,265,625.00 34,454,078.14 54,608,421.86 68,908,156.29 79,999,892.03 89,062,500.00 Shippping (Kyats) 1,425.00 13,359,375.00 20,672,446.89 32,765,053.11 41,344,893.77 47,999,935.22 53,437,500.00 Retail distribution (Kyats) 712.50 6,679,687.50 10,336,223.44 16,382,526.56 20,672,446.89 23,999,967.61 26,718,750.00 Total costs of goods sold 153,632,812.50 237,733,139.20 376,798,110.80 475,466,278.39 551,999,254.98 614,531,250.00
13.8% 13.8% 13.8% 13.8% 13.8% 13.8%Fixed costsHead office item 1Rent & electricity (rent per month) ($) 100Rent & electricity (rent per year) (Kyats) 1,140,000 1,140,000 1,140,000 1,140,000 1,140,000 1,140,000 1,140,000
Marketing CostsMarketing materials costs (Kyats) 4,662,958 4,662,958 7,390,613 9,325,916 10,827,053 12,053,571 Marketing headcount 0.5 0.98 1.47 1.95 2.43 3 Marketing salaries (Kyats) 228,000.00 448,400.00 668,800.00 889,200.00 1,109,600.00 1,330,000.00 Total marketing costs 4,890,957.94 5,111,357.94 8,059,413.48 10,215,115.89 11,936,653.06 13,383,571.43
SalesSales headcount 4 2 4 6 8 10 12 Sales salaries (Kyats) 1,368,000.00 2,690,400.00 4,012,800.00 5,335,200.00 6,657,600.00 7,980,000.00
SG&AHeadcount 5 5 5 5 5 5 5Salaries (Kyats) 123,500,000 123,500,000 123,500,000 123,500,000 123,500,000 123,500,000 123,500,000 General expenses (as % of sales) 1.5%General expenses (Kyats) 4,134,489 4,134,489 6,553,011 8,268,979 9,599,987 10,687,500 Total G&A expenses 127,634,489 127,634,489 130,053,011 131,768,979 133,099,987 134,187,500
Development costsDevelopment as % sales 2.50%Materials for development ($) 6,890,816 6,890,816 10,921,684 13,781,631 15,999,978 17,812,500
20
Table 9: Mandalay Income Statement 1 2 3 4 5 6
Penetration Rate 0.13% 2.71% 4.29% 5.42% 6.29% 7.00%Captured market (Kyats) 14,606,250 316,426,254 501,523,746 632,852,507 734,719,008 817,950,000 Units sold 768.75 16,654.01 26,395.99 33,308.03 38,669.42 43,050.00
Costs of Goods SoldMaterials (Kyats) 11,875.00 9,128,906.3 197,766,408.5 313,452,341.5 395,532,817.1 459,199,380.2 511,218,750.0 Manufacturing costs (Kyats) 2,375.00 1,825,781.3 39,553,281.7 62,690,468.3 79,106,563.4 91,839,876.0 102,243,750.0 Shippping (Kyats) 1,425.00 1,095,468.8 23,731,969.0 37,614,281.0 47,463,938.1 55,103,925.6 61,346,250.0 Retail distribution (Kyats) 712.50 547,734.4 11,865,984.5 18,807,140.5 23,731,969.0 27,551,962.8 30,673,125.0 Total costs of goods sold 12,597,890.6 272,917,643.8 432,564,231.2 545,835,287.6 633,695,144.7 705,481,875.0 gross margin 13.8% 13.8% 13.8% 13.8% 13.8% 13.8%
Fixed costsHead office item 0Rent & electricity (rent per month) ($) 100 Rent & electricity (rent per year) (Kyats) 1140000 0 0 0 0 0 0
Marketing CostsMarketing materials costs (Kyats) 5,353,075.7 5,353,075.7 8,484,424.3 10,706,151.4 12,429,456.9 13,837,500.0 Marketing headcount 0.50 1.36 2.21 3.07 3.93 4.78 Marketing salaries (Kyats) 228,000.0 618,640.0 1,009,280.0 1,399,920.0 1,790,560.0 2,181,200.0 Total marketing costs 5,581,075.7 5,971,715.7 9,493,704.3 12,106,071.4 14,220,016.9 16,018,700.0
SalesSales headcount 4 2.00 5.43 8.85 12.28 15.71 19.13 Sales salaries (Kyats) 1,368,000.0 3,711,840.0 6,055,680.0 8,399,520.0 10,743,360.0 13,087,200.0
SG&AHeadcount 5 5 5 5 5 5 5 Salaries (Kyats) 123,500,000.0 123,500,000.0 123,500,000.0 123,500,000.0 123,500,000.0 123,500,000.0 123,500,000.0 General expenses (as % of sales) 2%General expenses (Kyats) 4,746,393.8 4,746,393.8 7,522,856.2 9,492,787.6 11,020,785.1 12,269,250.0 Total G&A expenses 128,246,393.8 128,246,393.8 131,022,856.2 132,992,787.6 134,520,785.1 135,769,250.0
Development costsDevelopment as % sales 2.5%Materials for development ($) 7,910,656.3 7,910,656.3 12,538,093.7 15,821,312.7 18,367,975.2 20,448,750.0
21
10.3. Appendix: Consolidated Income Statement
1 2 3 4 5 6Units sold
Magwe - - - 6,750 8,704 13,796 Sagaing - - 9,375 14,507 22,993 29,014 Mandalay 769 16,654 26,396 33,308 38,669 43,050
Total units sold 768.8 16,654.0 35,771.0 54,565.0 70,366.6 85,859.8
SalesMagwe - - - 128,250,000.0 165,379,575.1 262,120,424.9 Sagaing - - 178,125,000.0 275,632,625.2 436,867,374.8 551,265,250.3 Mandalay 14,606,250.0 316,426,253.7 501,523,746.3 632,852,507.4 734,719,008.4 817,950,000.0
Total Sales (Kyats) 14,606,250.0 316,426,253.7 679,648,746.3 1,036,735,132.5 1,336,965,958.3 1,631,335,675.2
Cost of goods sold 12,597,890.6 272,917,643.8 586,197,043.7 894,184,051.8 1,153,133,139.0 1,407,027,019.9 Gross income 2,008,359.4 43,508,609.9 93,451,702.6 142,551,080.7 183,832,819.3 224,308,655.3
% of Sales 13.8% 13.8% 13.8% 13.8% 13.8% 13.8%
Rent & electricity 1,140,000.0 1,140,000.0 1,140,000.0 1,140,000.0 1,140,000.0 1,140,000.0 Marketing 5,581,075.7 5,971,715.7 14,384,662.2 20,243,204.2 25,419,205.2 31,124,184.0 Sales 1,368,000.0 3,711,840.0 6,055,680.0 9,767,520.0 12,795,360.0 15,823,200.0 General & administrative 128,246,393.8 128,246,393.8 133,694,731.2 139,051,027.0 143,554,489.4 147,970,035.1 Development 7,910,656.3 7,910,656.3 12,538,093.7 19,955,802.1 22,502,464.6 27,001,760.6 Operating income (Kyats) (142,237,766.5) (103,471,996.0) (74,361,464.5) (47,606,472.5) (21,578,699.9) 1,249,475.6
Depreciation 19,500,000.0 13,325,000.0 7,263,750.0 5,142,312.5 4,399,809.4 4,139,933.3 Amortization - - - - - -
EBIT (161,737,766.5) (116,796,996.0) (81,625,214.5) (52,748,785.0) (25,978,509.2) (2,890,457.7)
Interest - - - - - - Taxes - - - - - -
Net Income (Kyats) (161,737,766.5) (116,796,996.0) (81,625,214.5) (52,748,785.0) (25,978,509.2) (2,890,457.7)
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10.4. Appendix: Balanced Sheet Table 10: Balance Sheet
Metric Value 1 2 3 4 5 6Assets
Starting cash balance PLUG 261,250,000 261,250,000
Cash 50,000 99,534,869 18,658,873 95,361,398 130,752,545 214,827,711 343,993,243 Accounts Receivable as % of sales 10% 15% 15% 15% 15% 15% 15%
Accounts Receivable 2,190,938 47,463,938 101,947,312 155,510,270 200,544,894 244,700,351 Inventory as % of materia 7% 639,023 13,843,649 29,734,633 45,357,162 58,492,261 71,370,936
Total current assets 102,364,830 79,966,460 227,043,343 331,619,977 473,864,866 660,064,530
Capex 30 30,000,000 10,000,000 4,000,000 4,000,000 4,000,000 4,000,000 Depreciation as % of capex 65% 65% 65% 65% 65% 65% 65%Depreciation as % of capex 55% 19,500,000 13,325,000 7,263,750 5,142,313 4,399,809 4,139,933
Net Fixed assets 10,500,000 7,175,000 3,911,250 2,768,938 2,369,128 2,229,195 Other LT assets PLUG 0% (1,130,877) 120,967,320 170,363,233 157,777,682 94,807,939 (17,075,876)
Total Assets 111,733,954 208,108,780 401,317,825 492,166,597 571,041,933 645,217,849
LiabilitiesAccounts Payable as % of COGs 20% 25% 20% 20% 20% 20% 20%Accounts Payable 3,149,473 54,583,529 117,239,409 178,836,810 230,626,628 281,405,404 Accrued expenses as % of SG&A 7% 8,977,248 8,977,248 9,358,631 9,733,572 10,048,814 10,357,902 Notes payable, short-term 1-%long term n 80% - - - - - -
Total current liabilities 12,126,720 63,560,776 126,598,040 188,570,382 240,675,442 291,763,306
Notes payable, long-term as % of total no 20% - - - - - - Total notes payable as % of sales 0% - - - - - -
Total liabilities 12,126,720 63,560,776 126,598,040 188,570,382 240,675,442 291,763,306
Shareholders' EquityCapital stock 100 95,000 95,000 95,000 95,000 95,000 95,000 95,000 Paid-in-equity (round 1) 275,000 261,250,000 261,250,000 261,250,000 261,250,000 261,250,000 261,250,000 261,250,000 Paid-in-equity (round 2) 100,000 95,000,000 95,000,000 95,000,000 95,000,000 95,000,000 Retained earnings (161,737,766) (116,796,996) (81,625,214) (52,748,785) (25,978,509) (2,890,458) Total SE 99,607,234 144,548,004 274,719,786 303,596,215 330,366,491 353,454,542
Liabilities + Shareholder's Equity 111,733,954 208,108,780 401,317,825 492,166,597 571,041,933 645,217,849
23
10.5. Appendix: Cash Budget Table 11: Cash Budget
1 2 3 4 5 6Cash receipts
Cash sales 90% 13,145,625 284,783,628 611,683,872 933,061,619 1,203,269,362 1,468,202,108
Total cash receipts 13,145,625 284,783,628 611,683,872 933,061,619 1,203,269,362 1,468,202,108
Cash outflowsPurchases I/s 80% 10,078,313 218,334,115 468,957,635 715,347,241 922,506,511 1,125,621,616 General & administrative I/s 93% 119,269,146 119,269,146 124,336,100 129,317,455 133,505,675 137,612,133 Marketing & selling I/s 93% 6,462,640 9,005,707 19,009,518 27,909,973 35,539,546 43,661,067 Rent & Electricity I/s 100% 1,140,000 1,140,000 1,140,000 1,140,000 1,140,000 1,140,000 Development costs I/s 100% 7,910,656 7,910,656 12,538,094 19,955,802 22,502,465 27,001,761 Capex: equipment B/s 30,000,000 10,000,000 4,000,000 4,000,000 4,000,000 4,000,000 Mortgage loans B/s 0 0 0 0 0 0 0Income taxes I/s - - - - - - Dividend payments I/s 0 0 0 0 0 0 0
Total disbursements 174,860,756 365,659,624 629,981,347 897,670,472 1,119,194,197 1,339,036,576
Net Cash Flow (161,715,131) (80,875,996) (18,297,475) 35,391,147 84,075,166 129,165,531 Beginning cash [no financing] 261,250,000 261,250,000 99,534,869 18,658,873 95,361,398 130,752,545 214,827,711 Additional financing - - 95,000,000 - - -
Ending cash flow (incl. Financing) 99,534,869 18,658,873 95,361,398 130,752,545 214,827,711 343,993,243
Borrowings required 50000 - - - - - - Interest expense I/s 10% - - - - - -
Net Cash Position 99,534,869 18,658,873 95,361,398 130,752,545 214,827,711 343,993,243
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10.6. Appendix: Implementation Plan
Assumptions Total Cost ($)Oasis staff 2Number of weeks for testing 4Airline tickets 1500 3,000.0 Rent/week 150 600.0 In-country transportation/ week 150 600.0 Food allowance/ week 168 1,344.0 Salary for staff/week 525 4,200.0 Telecommunications cost/ week 100 400.0 Miscallenous partner expenses 2000 2,000.0 Total cost 12,144.0 Table 12: In-country Testing
Total Cost (Kyats) Total Cost ($)Number of units manufactured 1000Margin for error in manufacturing (# of extra units wasted) 100Manufacturing costs (Kyats) 14,963 16,458,750.0 17,325.0 Transportation costs/item 1,425 1,567,500.0 1,650.0 Retailer margin 819 12,341,835.9 12,991.4 Total product costs 30,368,085.9 31,966.4
Oasis staff 2Number of weeks of pilot 16Airline tickets 1500 2,850,000.0 3,000.0 Rent/week 250 3,800,000.0 4,000.0 In-country transportation/ week 150 2,280,000.0 2,400.0 Food allowance/ week 168 5,107,200.0 5,376.0 Salary for staff/week 525 15,960,000.0 16,800.0 Telecommunications cost/ week 100 1,520,000.0 1,600.0 Total personnel costs 31,517,200.0 33,176.0
Miscellaneous operating costs 9,364,714.1 9,857.6
Target Pilot Financing Costs 71,250,000.0 75,000.0 Table 13: Pilot Program
25
10.7. Appendix: Existing Water Carrying Devices
26
27
28
Appendix: Final Video
29
30
31
32
10.8. Appendix: Product Testing
10.8.1. Feb. 2
33
10.8.2. Feb. 17
34
10.8.3. Feb. 28
35
10.9. Appendix: Selected Brainstorming Sessions
36
37
38
39
40
41
10.10. Appendix: Team Member Profiles
Alex-Handrah Aime Alex-Handrah Aime is a 4th year JD/MBA student. She is originally from Haiti, and is very interested in international development issues affecting Africa and the Caribbean. Alex graduated from Harvard College with a degree in Biochemistry, and then worked in management consulting for 3 years before starting at Stanford. During her graduate summers, she has focused principally on financial services with internships in both investment banking and private equity. She plans to pursue a career that will allow her to fund entrepreneurial ideas such as those generated through this class.
Girish Mulye Girish Mulye is completing a MSEE at Stanford University and holds a BSEE from the University of Illinois at Urbana-Champaign. Previously, Girish was a founding member and Senior Research Associate at Theranos, Inc, a startup focused on pharmacological drug monitoring. His interests primarily lie in medical devices and anything related to Batman.
Micah Lande Micah Lande is a master's student in the Learning, Design and Technology program in the School of Education. As a undergrad at Stanford he majored in Product Design. Micah has designed toys, taught science in middle and high school and worked in the interactive television industry. He grew up by the beach and enjoys watching television and playing golf.
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Rory Eakin I grew up in Washington DC and majored in Public Policy and International Affairs at Princeton as an undergrad. After college, I moved to South Africa for two wonderful years teaching a Numeracy Skills course at the University of Cape Town while also pursuing a master's degree in International Relations. My research at UCT focused on political and economic policy in Sub-Saharan Africa. Following my graduation, I came to Stanford for an MBA. Last summer, I interned at Development Alternatives, an economic development consulting firm in Bethesda, MD, working in their private sector group.
Scott Kohn This is my 6th year at Stanford, and my second as a graduate student in engineering. I am a TA in the product realization lab and a research assistant working on a by wire vehicle. I enjoy problem solving and building things and look forward to designing for a much different user than I am accustomed. I am originally from Chicago and like to play soccer, mountain bike, cook, and make things.
