AcuScan Operation Optimize Case

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STEP 1

On purpose and scope of document
The document delineates the steps taken by AcuScan to launch a new product "Operation Optimize". The document discusses the progress on the project, the budget allocation and the problems, both real and hypothetical. The scope of the document relates to the steps taken by AcuScan's Marketing department, its assessment of the market needs, the possible product that may be launched by its competitors, the costs and its effect on product development, the related budgets, the expected ROI and adverse reactions of the employees. STEP 1

On purpose and scope of document
The document delineates the steps taken by AcuScan to launch a new product "Operation Optimize". The document discusses the progress on the project, the budget allocation and the problems, both real and hypothetical. The scope of the document relates to the steps taken by AcuScan's Marketing department, its assessment of the market needs, the possible product that may be launched by its competitors, the costs and its effect on product development, the related budgets, the expected ROI and adverse reactions of the employees.

STEP 2

Summary of the situation:

AcuScan's retinal scanning device sales are falling because of difficult economy situation. To counter these falling sales AceScan has devised a new product "Operation Optimize" that would give comprehensive information about a customer to the retailer helping him enhance his sales. There is market intelligence that a competitor is also developing a comparable product. Even though there is a potential customer for the new product, procrastination in development is apprehended. In addition, cost overruns of $250,000 have pushed up the cost of the project to $925,000. Moreover, the Director of Marketing fears resistance from the employees and the VP Product Development suggests a minimum reduction of 15% in the product development budget.

STEP 3

Key points relating to the situation

There is need to launch "Operation Optimize" as early as possible.
There is trepidation that competitor Secure-A Corp may launch a retail tracking device quickly.
It is dreaded that delays software development may holdup a quick launch
It is expected that the budget for the product launch may have to be increased by $250,000.
There are fears that certain sections of the employees may not cooperate with the launch of the new product and this may force the company to outsource software development.

STEP 4

Conclusions

There are pressure deadlines and employee constraints in the development and launch of Operation Optimize. What the company needs to do is to outsource the software development by enhancing the budget by $250.

STEP 5

Recommendations and actions to be taken, and why

"Operation Optimize" needs to be launched before August. There is fear that Secur-A Corp may come out faster with an alternate product and grasp the first-mover-advantage. To maintain it's positioning, as a pioneer AcuScan must be the first to launch "Operation Optimize" and skim the market for profits.
The discussion with the Director Marketing and the decision should be made quickly. If the existing staff is paid more and the development of the software is completed before the launch date of August, that is the preferred alternative, confidentiality will be maintained and the cost increase will be less than that incurred in outsourcing. However, if the staff does not want to take up the challenge, the company should immediately outsource the software development and ensure that it does not overshoot the August deadline. This is important because AcuScan must be first in the market, following the experience of iScanner there will be a plethora of comparative products later and AcuScan must make adequate sales before "Operation Optimize" is also reduced to commodity.

STEP 2

On summary of the situation.

AcuScan's retinal scanning device sales are falling because of difficult economy situation. To counter these falling sales AceScan has devised a new product "Operation Optimize" that would give comprehensive information about a customer to the retailer helping him enhance his sales. There is market intelligence that a competitor is also developing a comparable product. Even though there is a potential customer for the new product, procrastination in development is apprehended. In addition, cost overruns of $250,000 have pushed up the cost of the project to $925,000. Moreover, the Director of Marketing fears resistance from the employees and the VP Product Development suggests a minimum reduction of 15% in the product development budget.

STEP 3

On key points relating to the situation

There is need to launch "Operation Optimize" as early as possible.
There is trepidation that competitor Secure-A Corp may launch a retail tracking device quickly.
It is dreaded that delays software development may holdup a quick launch
It is expected that the budget for the product launch may have to be increased by $250,000.
There are fears that certain sections of ...