Argenia Business Plan
Evaluation of
opportunities in applying generative design approach for unique objects
production
glsoddu@yahoo.it
Sergio Rossi
Business Analyst, Rome, Italy
Abstract
This business plan provides a blueprint for the launch and growth of Argenia concept. It will also serve to demonstrate the operational and financial viability of Argenia business.
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Argenia
is the business of commercializing unique design objects by the means of generative
design techniques applied to manufacturing and mass production.
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Argenia
products will enter the market of fashionable design commodities where this
technology can be applied immediately. The generative design technology will
later be diffused throughout the entire range of design products as on going
R&D and marketing analyses identify further avenues for profitable
application of the concept.
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The
generative design technology consists of software that can process and generate
series of unique objects quoting every single part of the desired outcome. Once
the design is complete all reference data can be wired to a numeric control
machine which can be easily programmed to start up the production.
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The
advantages of this technology include significant improvement in the design
phase of the concept and the opportunity to quickly evaluate a possible set of
solutions (kind of objects, not single objects) the producer wants to market.
Nonetheless the uniqueness of the final product deployment, master database
will always hold trace of the rolled out manufactured goods.
§
This
will lead to potential manufacturing cost benefits due to the reduction of time
to market options and the scale production of artcrafts by the means of
numerical machineries.
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The
market for generative design objects spreads all over the commodity furniture
to every other possible product used in the normal day time of a human being.
Everything we use in our day by day activities can be turn into something
unique and special.
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To
serve this market by Argenia approach, we considered two strategic
options: licensing and manufacturing.
Manufacturing and marketing generative design products under the own banner
involves considerable business risk and funding costs, which may be minimized
by licensing and leveraging existing production channels (minimum start-up
cost).
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We
evaluated better to seek to license the patent to a major manufacturer in a
mutually beneficial strategic alliance. Royalty income from this alliance will
provide the necessary funding for ongoing R&D expenditures and patent
protection. Year by year revenue flows are expected to grow from licensing due
to higher sales volumes.
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Expected
royalties total $ 0,8 million for calendar 2004, with $ 2,7 million in
royalties expected over the first six years. This income can be applied
liberally to R&D, a patent protection fund, and the commercialization of
other products. Cash balances for the licensee manufacturer become positive
after three years and cumulate to $ 9,7 million over the six years.