Innovation management and how to create new technology services from startup

1. Page | 2
Table of Contents
1. Framing the Problem .....................................................................................................................................................3
a) Empathise.............................................................................................................................................................3
b) Synthesise .............................................................................................................................................................4
c) Evaluating……………………………………………………………………………………………………………………………………………………….5
d) Scoping……………………………………………………………………………………………………………………………………………………………6
2. Framing the Solution Space ...........................................................................................................................................6
a) Inspire ....................................................................................................................................................................6
b) Imagine ..................................................................................................................................................................8
c) Focus ......................................................................................................................................................................9
3. Concept Development .................................................................................................................................................10
a) Prototyping ..........................................................................................................................................................10
b) Designing..............................................................................................................................................................13
4. Commercialization Plan ...............................................................................................................................................14
a) Innovation Strategy..............................................................................................................................................13
b) Financing our innovation .....................................................................................................................................14
c) Business Model....................................................................................................................................................14
d) Intellectual Property Protection..........................................................................................................................15
5. References…………………………………………………………………………………………………………………………………………………………… 16

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1. Framing the Problem
a) Empathise
All of us travel and use a variety of different methods to get from point A to Point B such as public transport
or using our own personal car. However, the use of some methods of travel over others corelate with
problems arising in society. The lotus blossom chart below breaks down a key problem people are currently
facing that we aim to solve.
Walk
Bicycle
Car
Train
Travelling
in Sydney
Flight
Light
rail
Car
Traffic
Parking
spot
Fines
Parking
spot
Renewing the
parking spot
Finding a
parking
spot
Waiting for
parking spot
Paying for
parking
Locating
my car in
parking

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Poor planning
Traffic congestion
Less use of
public
transportati
on
No booking
mechanism
Small parking lot
Lack of parking facility
in the area
Hefty fines
Last minute
travel plans
Lack of knowledge
about the area
Take two
parking space
Expensive to build a
new parking spot
First come first
serve basis
Convenience of
driving in and out
Expensive
parking fee
There has been a large-scale increase in the amount of shops at consumers disposal when visiting shopping
centres. This has consequently created more variety, more options, more convenience as all the necessary
products consumers need are now located in the one shopping mall. Shopping centres have become popular
locations to visit, not just for its retailing options but expanding with restaurants, cinemas and entertainment
venues. Having access to these shopping centres has also become a luxury for users who would usually
drive, rather than use public transport. However due to the sheer number of users arriving via cars has
created a challenge in acquiring a car spot for every consumer visiting(Banarjee 2013). Even with multiple
levels of designated car spots, consumers are still having trouble finding a car spot and has created the least
favourite part of the shopping experience.
Through our own observations we have gathered several problems arising in the field of carparking and the
key aspects creating this inconvenience for consumers visiting shopping centres.
b) Synthesise
Fishbone Diagram
Observations
With
Carparking
Within
Shopping
Centres
Extra time
required to
find a car
spot
Process is
currently
slow
Increase in
car users
visiting
shops
Increase in
traffic/con
gestion
within
carparks
Higher
demand
for car
spots
Ticket
system is
inconvient
Time
allowance
is ristictive
Lack of traffic
controller signs
Parking Issues
Within Shopping
Centers
Management Mechanism
Machine Facility
People

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c) Evaluating
Based on our knowledge and understanding of the overall problem at hand, we have ranked the top four
consumer needs that we will draw our focus towards and why we believe they are the key problems needing
to be solved.
Needs
Grading Criteria (Out of 5)
Score Rank
Reduces the
users time
Better car
park flow
Better
availability
Congestion amongst
the car park needs to
be solved
3 4 1 8 4
The process/system
needs to be quicker
and more
convenient
5 4 4 13 1
Reduction on time
spent finding a car
spot
4 3 4 11 3
More spaces are
being needed
4 3 5 12 2
The process/system needs to be quicker and more convenient1.
• Getting in and out of carparks have become a slow and frustrating process.
• Stopping at the boom gate to both collect and return your valid ticket creates a que of cars.
• If the ticket is overdue, stops the entire process until the user pays at the exit.
More spaces are being needed2.
• There simply isn't enough spaces for the required demand especially during the busy weekends and
holiday periods.
• More spaces require more land or more levels, both are very expensive to aquire.
• Extensions made to carparks require planning approval and will cause interferance during construction to
current users and the shopping centre.
Reduction on time spent finding a car spot3.
• We spend roughly an extra 10-15 minutes circulring around the carpark levels for a spot.
• Sometimes we settle for spots that are located far away from the shopping centre entrances which make
carrying groceries or any products difficult to trasnport to the users car.
• This is wasted time that is added to our allowable parking time, which is already farily ristrictive.
Congestion amongst the car park needs to be solved4.
• If users do not find car spots first time around, they create traffic amongest the car park which
consequently interferes with users coming into the car park and users trying to exit the car park.
• Due to limited space, shopping centres aim to design as many possible car spaces within the designated
area, however this creates sharp turns and smaller spots which in turn increases time as users have to drive
more carefully.

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d) Scoping
More Efficient Process/System:
It is obvious that the current system in place for carparks within shopping centres sometimes struggles to keep a
constant flow of users entering the centre. There needs to be a quicker process that lets users drive in and out of
shopping centres faster and more convenient, allowing for more available spots to be taken by the next lot of users.
More Spaces:
Due to the rising population both worldwide and in Australia, the need for a more space has increased. The
commercialisation of the economy calls for a need to have the accessibility to public shopping centres(Banarjee
2013). Further, as the majority of the adult population in Australia relies on travelling by cars, they require safe
parking places to be both available and assessable. Thus this calls for the need to increase the amount of parking
spaces within shopping centres.
Reducing Wasted Time:
Users are now taking into account extra time needed in their journey just to find a spot before entering the shops due
to limited availability or because of busy periods. Consumers don’t want their already limited time waiting for a car
spot to appear. There should always be available spots in the shopping centres no matter the time of the day.
Solving Congestion:
There is no current process in place to account for if all the spaces are taken which creates traffic and congestion
amongst the carparks, stopping users from even exiting the carpark. There needs to be an efficient system in place
telling users if the car park is already full or even suggest a time that will work better for the carpark flow.
2. Framing the Solution Space
a) Inspire
Interview Questions Collected Answers
- What will you do when you cannot find a
parking space in shopping center?
• Try to find another car park nearby.
• Drive around to find an available one.
- What is your current solution for finding a
parking space in shopping center?
• Think about possible parking places before driving out.
• Go to the car park early.
• Pre-plan the schedule and avoid the peak time.
• Take public transportations.
- How can you find a car park in shopping
center right now?
• Google map.
• Follow the signs offered in the shopping center.
• Asking the staff in shopping center.
- What kind of car park do you prefer in
shopping center?
• In-door car park.
• Near the exit/entrance. (easy for shopping)
• The locations which are easy to remember.
• Low parking fee.

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Summary
We conducted an interview to collect possible solutions for parking problems in shopping center from car
users (our interviewees) located in Sydney. We found out the most important elements for our solution
which will be our ‘voice of customer’ needs (VOC):
• The real time status of the parking space can be
checked.
• Secure.
- Do you have any suggestions to solve the car
parking problem in shopping center?
• Increase parking space or parking fee.
• Reduce the car use.
• Improve current parking systems.
• Inform the drivers when they enter the car park.
- Any suggestions to mark/find the parking
location after parking in shopping center?
• Walk around and try to find it.
• Take a picture of parking space to remember it before I
leave.
• Ask the security in parking place to help.
- What kind of functions would you like in a
parking application if it is developed to solve
parking problems in shopping center?
• Show the nearest parking location with available
parking space.
• Calculate estimated time from current location to
parking space.
• Display parking fees and available time.
• Show the route directly to the parking space.
• Keep the car park for me when I arrive.
• Inform me the parking time. (how much time left)
VOC List Percentage Mentioning This Need
1. Effective in finding available parking space (save time) 30%
2. More parking spaces 40%
3. Locating parking space prior to leaving 5%
4. Scheduled parking time (booking system) 20%
5. Real time status for parking space 5%

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b) Imagine
Figure 1: Mind Map of Solutions
Brainstorming Concept Solutions
Full car park Poor alternatives High charges for car
park
Car Parking Solutions
• No allocated space
• Permit expire at
6pm
• 1/2, 1,2 hours only
• Free for all
• Delivery only
• Time restriction
• Car-sharing
Benefits to sharers
Affordable parking
charges
Time restriction
Consistent start time
• Publics transport
Bus/Train timings
constrains
Time restriction
Links to train n bus
stations
• Walk
- Bicycle facilities
• Daily travellers can't
afford
• Unaffordable parking
fair
• On site coupons
• Fence car park
• Car sharing
• Car park services
Card access
Valet parking
Pre-booking system

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c) Focus
For each ‘voice of customer need’ we graded them against three criteria’s that we believe suit this shopping
centre problem. Firstly, is the need achievable and could be implemented into our product. Secondly is the
need cost efficient, meaning how much money will it take to solve that customer need. Thirdly in solving
that need will it be effective in helping solve the overall parking in shopping centres problem. We then
produced a ranking of the VOC’s against the grading criteria, results are as followed:
• More parking spaces was ranked lowest due to being unrealistically achievable with all the
construction and project planning required in extending carparks. Yes making more spots will be
very effective hence ranked 5 however will cost a small fortune.
• Real time status is achievable but can experience technical issues especially in zones such as
shopping centre carparks where the signal drops out but if successful could really help users know
current information about where they are about to park.
• Both the need of finding available spaces and locating your spot prior to leaving where ranked equal
due to both being relatively achievable with a certain amount of money put into the product and
systems. Both would substantial improve this car parking issue since finding an available space will
save time driving around the carpark and locating where you originally parked because you forgot
(which happens to everyone) will also save time in leaving.
• Ranked first was scheduled parking which is very achievable with the current technology out there
and the similar systems already in place with other apps. Will not be too expensive to create and
monitor throughout the carpark but will be very effective in solving the major problem of users not
being able to find a car spot amongst the shopping centre, since this system will guarantee them a
saved spot upon arrival.
We took these results and discussed heavily with the team about what needs we will prioritise in our
product, considering both the customers needs ranking as well as the graded criteria ranking. We still believe
a scheduled parking system is the best solution and will be a massive part of our product but when it came to
constructing more spaces which was ranked highly from customers this does not fit into our product solution
hence will have no bearing. A system where spaces can be effectively found for users was ranked second
followed by real time status updates of the car park ranked third, both still have a substantial part of our
overall product.
VOC List
Grading Criteria (Out of 5)
Total
Rank
Against
CriteriaAchievable
Cost
Efficient
Effective
1. Effective in finding available parking space
(save time)
3 3 4 10 2
2. More parking spaces 1 1 5 7 3
3. Locating parking space prior to leaving 3 3 4 10 2
4. Scheduled parking time (booking system) 4 2 5 11 1
5. Real time status for parking space 2 2 3 7 3
VOC List
Priority Weight For
Our Solution
Ranking Of Ideas For
Our Solution
1. Effective in finding available parking space (save time) 30% 2.
2. More parking spaces 0% 5.
3. Locating parking space prior to leaving 10% 4.
4. Scheduled parking time (booking system) 40% 1.
5. Real time status for parking space 20% 3.

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3. Concept Development
a) Prototyping
Detail Breakdown of The Design Solution:
Our solution is creating an app where users can pre-book car spots at any shopping centre they wish to visit across
Sydney. This will be done by having a certain section of the carpark dedicated for these premium users who are
booking through the app. How it works is if the user wants to go shopping in 30 minutes, they would simply open the
app and login into their account. A map then appears showing all the shopping centres nearby to their current location
or there is a search bar option for other centres across Sydney. The user then clicks which one they would like to visit
and the time they want to arrive at. Each shopping centre will have its own monitoring system giving real time data of
how many spaces are available from the premium section and transfer this information back to the app to inform the
user. If the shopping centre is currently full it will suggest to the user an alternative time to book a space ensuring they
do not waste time but rather allow the user to fulfil other tasks before leaving. It also gives the chance for the user to
choose and compare alternative shopping centres before leaving their home based on this information. Once the time
of arrival has been confirmed the app will update the user with being successfully booked and notify their particular
car spot number. The app will communicate with the monitoring system at that shopping centre and will secure the car
spot space by lifting the individual fold up bollard which will be placed within each premium car spot and stop any
other users from parking in their spot. However if the user has booked an arrival time greater than 30minutes, they
will receive a message via the app upon arrival letting the user know of their car spot number due to still allowing
other users to park in the spaces and allow a constant parking flow. When the user arrives at the front entrance boom
gate of the carpark, a camera will register the cars number plates and know this particular car has a pre- booking car
spot and will allow them to drive straight through. The user is then able to click the ‘View Carpark Directions’ on the
app which will open up a layout of the shopping centre carpark and give direction to their booked car spot. Another
camera placed within the premium section will register the plates and lower the individual bollard and allow the user
to park.
Improving to meet the needs of the VOC’s:
1. Scheduled parking time
The app becomes an easy and useful tool to allow users wishing to drive and park at shopping centres to pre-book a
scheduled guaranteed parking space prior to leaving their home. The user gets to decide what time they want to arrive
and what shopping centre they want to visit, which helps ensure their plans are not affected by carparking issues.
2. Effective in finding available parking spaces
The app informs the user of the nearest shopping centres and how many available spaces are left, which gives the user
more options for where to park. If the user plans to arrive within 30minutes the parking space can be located straight
away through the carpark layout map via the app even before leaving their home and will direct the user to their spot.
If the user plans to arrive later than 30minutes then the location of their scheduled parking space will be updated via
the monitoring system as we still want other users to be able to use every available spot while still ensuring a spot will
become available upon their arrival.
3. Real time status for parking space
The monitoring system in place at each shopping centre will be constantly updating users with the best available
spaces and even inform of current busy periods that will affect the congestion throughout the carpark. If the carpark
spaces are reaching critical (fully booked) the system informs the user to suggest other alternative times and uses
probability to predict when other users who are currently shopping will be leaving and therefore more available
spaces.

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4. Locating parking space prior to leaving
We have all been in that situation where we forgot where we parked or even what level its on, this app solves this
problem through the same way it directs users from the entrance of the carpark to their booked space. Users can re-
open that page on the app and locate what level and area they parked, saving both time and stress for users.
Concept Evaluation:
During the initial analysis of the problem we brainstormed a few customers needs based on our own
knowledge and observations. These were needing a quicker and more convenient process, reduction on time
trying to find a spot, overall congestion around the carpark. Our team believes we have successfully
fulfilled these needs through our app product based on its functional purpose, execution of use and
creativity.
Functional Purpose – The product has created an alternative and more convenient system with parking due
to not requiring the ticket system anymore but rather registers the combined payments of booking through
the app and additional payments if the user decides to stay past the free allocated parking time.
Execution – The app itself has become a smart way of delivering this booking system to the users since its
easily available on your phone, which everyone usually has on them where ever they go. Therefore, able to
make bookings or even search venues to compare while on the go. Dramatically reduces the time taken to
find a spot due to the spot already being secured while the user is on route.
Creativity – The idea of having a map first pop up showing all the nearest shopping centres and the amount
of available spaces is a smart way of informing the users of their options if the venue they were planning to
park at is fully booked but realise other nearby shops are much less busier, which generally have the same
convenient stores such as Big W, Woolworths, Target, Myer etc. Also having a layout of the actual carpark
and given clear directions from entrance too the secured spot stops congestion amongst the carpark. Having
an individual bollard for each spot is a creative way of ensuring their spot is saved and cameras in place
registering the users plates and allowing them to enter without any stoppage reduces time wasted.
Using sketches, we designed
the layout of the app from
start to finish and exactly
what the user would see and
interact with. This includes
all the different pages of
information and options
available to the user. We had
to carefully plan the
sequence of pages in order to
fulfil the booking system
while creating an easy and
simple app to use and
understand. We used arrows
to connect pages after they
clicked a certain option on
the screen and coloured
coded where the buttons
would be on the app, the user
inputs and the user results.
Figure 3.1 – App Design Layout Figure 3.2 – App Design Layout

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b) Designing
Our team used a website called Marvelapp.com which enabled us to create a
simple prototype design of how the App would look. We had to ensure the
way the user could easily interact and navigate around the apps different
functions and understand the booking system process.
Login page
of app.
User options on home page. Personal information on user. Payment information.
Book a spot page, showing
the nearby shopping centre
options and how many
spaces are available.
User inputs time of arrival.
User gets a confirmation
of booking and the
corresponding carpark
space number.
Carpark layout is then
open to help users locate
there spot with direction
from front entrance.

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4. Commercialization Plan
a) Innovation Strategy
Our innovation strategy is to use an existing technology in more efficient and creative way to provide the
solution to the car parking issue. Our application is specifically designed for implementation in shopping
centres across Sydney. The increasing number of cars and public transport in cities and the problem of car
parking inspire our innovation strategy. Our application will provide a break through to the traditional way
of parking, our application will provide better and convenient platform for car owners to get the parking
spots. This will create a hassle-free pre-booked parking spots and affordable parking fees.
Our innovation strategy also explored all the market developments that has happened and changes in the traditional
parking services and in this scenario while defining the most affordable and reliable market opportunities in parking
services provided for the car owners. Our car parking application has taken under consideration the problem faced by
the car owners like, effective finding available parking space, more parking spaces, locating parking space at the
destination prior to leaving, scheduled parking time, real time tracking status for parking space.
Finally, our innovation strategy is adaptive and will evolve with time, depending on the change in market
and varied need in parking system. As of now our car- parking app is for shopping centres car parks as it is
one of the most visited place by people and also people like to have personal time at shopping centres. We
are providing our car-parking application, which will provide more efficient process, spaces, reducing
wastage of time, reducing congestion at the shopping centre car parking.

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b) Financing our innovation
The average price for app development in Australia is $100,000 (Amin 2017). We have decided to
take a pessimistic stance and assume the cost of $200,000 for app development. Other marketing and
promotional cost before launching the app will be around $150,000. Furthermore, it is expected to
incur the additional cost of $100,000 as the administrative cost. This sum is expected to be collected
through venture capitalists. The following NPV table shows our cost and revenue for three years:
The table above show the net present value of our app. The official discount rate is at 5% in Australia
(IPART 2017), however, we as we are taking a pessimistic stance, we have assumed the discount
rate to be at 10%. We have assumed the revenue and cost to rise by 20% each year. The app has a
payback period of less than 3 years. The table shows that the app has the possibility of being
profitable with profit increasing each year.
c) Business Model
‘Get your spot’ will make money from the parking fees that the customers pay for their spots. Currently,
most of the shopping centers have free parking for less than 3 hours. But, we have analyzed that people are
willing to pay some amount to have a guaranteed space. Moreover, we’ll charge a premium on parking (for
more than 4 hours parking), which will be shared with the shopping center. Similarly, we will also provide
subscription-based pre-booking feature. If a customer subscribes for monthly use, he/she can book and get
free parking for less than 3 hours in shopping centers. It will help to generate steady revenue(Koch 2017).
Discount Rate 10%
Start-up Costs 450,000 Yearly increase in revenue and cost 20%
On-going Proj Overheads 500,000
Other indirect costs 100000
Revenue 800000
Duration 4
Analysis:
Year 0 1 2 3 4
Discount Factor 1.000 0.909 0.826 0.751 0.683
Sales Revenue 800,000 960,000 992,000 998,400
Start-up Costs -450,000
On-going Proj Overheads -500,000 -600,000 -620,000 -624,000
Other indirect cost -100,000 -120,000 -144,000 -172,800
Total Costs -450,000 -600,000 -720,000 -764,000 -796,800
Net Cash Flow -450,000 200,000 240,000 228,000 201,600
Total Net Cash Flow 218,000
Discounted Net Cash Flow -450,000 181,818 198,347 171,300 137,696
Net Present Value 239,161
Cumulative DCF -450,000 -268,182 -69,835 101,465 239,161

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d) Intellectual Property Protection
We believe our app will help a lot of people in their daily struggle to find a parking spot. The idea is to
solve a problem that is there all around the world and is expected to last long with the increase in
population and growth of automobile industry. With this, we believe we are going to grow as a
business. Therefore, it is important that we protect our innovative idea and application with the
intellectual property protection.
Our app is an ‘inventive step’ for solving a genuine problem prevalent in the society i.e. problem of
finding a parking spot. Likewise, we believe the process of solving the problem through our app is
‘novel’. There are apps in the app store that have been created to solve the same problem but the way
we solve the problem, as described in this report, is completely different to other applications. Finally,
we are sure that our application will be useful to the people all around the world and will be useful for
a long period of time. Therefore, our app satisfies all the three attributes to be patentable. We will
‘patent’ the process of the app under the name of the organization so that the company can hold the
right to benefit from the innovative app.
Customer Segments
- Car owners
- Mostly aged 20-35
- Sydney residents
Customer relationships
- Automation (where
possible)
- Dedicated service line in
case of any problem
Key Resources
- Smartphone
platform
- Apps,
architecture
- Servers
- Datacenters
Value Propositions
- Pre-book the parking spot
- Provide convenient service
- Eliminate the hassle of
finding parking spots in
peak hours
- Parking fee estimation
Channels
- Smart phones
- App store
- Play store
- Social media
- Local promotions
Key Partners
- Shopping centers
- Data center
- Servers
Cost Structure
- App development
- Operating cost
- Administrative cost
- Data center/ servers cost
- Marketing and sales
Revenue Streams
- Direct payment/ transaction
fee
- Commission
Key Activities
- Parking spot
booking

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5. References
Banarjee 2013, An Overview of Common Parking Issues and Parking Management Options and Creative Solutions,
Pasadena, <http://pipta.org/wp-content/uploads/2014/04/Parking-Problems-and-Creative-Solutions.pdf>.
Amin 2017, 'App Development Cost Breakdown', nirmal.com.au, weblog, <https://www.nirmal.com.au/app-
development-cost-breakdown/>.
IPART 2017, Latest discount rate for use in local development contributions plans, IPART, New South Wales.
Koch, R. 2017, How Uber Used a Simplified Business Model, Entrepreneur, viewed 31/05/2018,
<https://www.entrepreneur.com/article/286683>.
Taylor, T. 2018. ‘Sydney’s eastern suburbs plagued with concerns about congestion, overdevelopment’. The Sydney
Morning Hearld < https://www.smh.com.au/national/nsw/sydneys-eastern-suburbs-plagued-with-concerns-
about-congestion-overdevelopment-20180131-h0r7dw.html >
Wouter Koetzier & Christopher Schorling. 2013. 5 Key Points to Consider when Developing an Innovation Strategy.
[ONLINE] Available at: http://www.innovationmanagement.se/2013/07/03/5-key-points-to-consider-when-
developing-an-innovation-strategy/. [Accessed 14 May 2018]
Anthony, s. (2008). How to Form an Innovation Strategy. [online] Harvard Business Review. Available at:
https://hbr.org/2008/08/how-to-form-an-innovation-stra [Accessed 25 May 2018].