In this paper, emphasis shall be put on the entrepreneur analysis of applying discovery-driven planning to a Freisland Campina processing plant”. In this case, Discovery-driven planning looks at the how ventures face much loses when they involve themselves in the business with new products, new market, new alliances, and new technology. In addition, a mechanism is a tool that is used to understand the difference that is between making plans for a new conventional business and a new business venture (Joe, 2016). To note, the Discovery-driven planning tool provides the lowers chance of moving a product in the presence of uncertain, or what is not yet known in the competition I order for different ventures or business to get the idea at the lowest rate in the processing of achieving new ventures. Therefore, discovery-driven planning consists of a number of tools and disciplines that consist of the 5 steps. On the other hand, a dynamic Fodder system is a well-engineered and designed unit that operates on a wide range of climate. In this case, the system is the best solution for providing at least one thousand kilograms of fodder each day (Joe, 2016). The system represents the high valuable fodder in a good controlled environmental system with an intention of speeding up the nutritious and high-quality growth of fodder. Therefore, the installation of the system is aimed at improving the growth of cattle irrespective of the climatic change or situation (McGrath & MacMillan, 2009).
Basing on the five steps of the discovery-driven planning process, we would like to distill the key assumptions and milestone of the metric provided in class by building a reserves statement that can depended on while installing a Dynamic Fodder system in Freisland Campina. According to the first step of the discovery-driven planning, it states that for any venture to be launched, the business managesshould, first of all, make the decisions on how the success of such a venture should be. In this case, the step one indicates that the business managers should first make “a reverse financial statement” for a given project instead of making an estimation of the revenue that the venture would make by simply assuming the number of profits that will be obtained. In addition, the owner of the venture should first determine the marginal profits required to be obtained from a given venture. The steps help to distill the assumption and the milestones which indicate that the business owners should first check the progress of the sales over the desired growth. Further, the discovery-driven planning indicates that at times success is not measured in regards to financing buts instead in the size of the network, the users and many others .
Do benchmark, in this step the business/ venture owners should figure to find out how realistic their “reverse income statement” is. In this step, the venture owners should first benchmark the major cost and revenue metrics in the business overs market and firms that are offering similar products. The step will help the business venture asses if it is realistic or not. Therefore, the business is required to have success in benchmarking so as to have the good value of products in the market (McGrath & MacMillan, 2009).
Defining of operational specifications, in this case, the business owners have to think hard about something true regarding the business so as to achieve success. In addition, the business owners should lay a foundation of all the process that is needed in order to deliver and sell the new services and products to the customers. The step distills the assumptions and milestones which indicate that business owners should unit design to cut down build costs from the previous field experience. The 3rd step of the discovery-driven planning process indicates that business owners should always the first estimate the number of business sales peoplethat they need, the number of calls that they should make, and the number of calls that the salespeople should close at a given period of time.
Documentation of assumptions, this is the fourth step of the discovery-driven planning process. The step is quite different from discovery-driven planning and conventional. At this step, most companies tend to go wrong. While implementing the new ventures, most leaders tend to base their decisions on very big assumptions which is a very big problem in learning. In order to avoid the problem, business leaders need to involve all the personals working in the venture so as to list all the business assumptions in regards to revenue, allowable costs and revenue. To note, the venture leaders should first and far most stick on the most important assumptions, that is to say, the problems of the customers. Therefore, as the risks and costs of the venturi increases, the leaders are required to also increase their assumption plans (Joe, 2016).
Plan for major checkpoints, this is the fifth step of discovery-driven planning that involves laying out of the plan. To note, venture leaders should plan should always plan as their knowledge base. In this case, leaders are required to identify a number of checkpoints where they determine if their assumptions are true or false. In addition, the fifth step is where a given company should decide whether to invest in more money and time. Further, at this step, the company decides whether to continue with the project, redirect it or stop it based on what they learned (Joe, 2016). Therefore, if the venture assumptions need adjustment, the leaders are required to update their operational requirements and “reverse income statement”. In summary, the business leaders need to be more careful when dealing with the first step because most of the people are always afraid of making a mistake. To note, if the venture leaders can’t accept that they are wrong which is very bad because they will never see their fault. Therefore, individuals should always plan to learn new ideas in the business (McGrath & MacMillan, 2009).
Base unit
steel shell US$4k
water/ air US$4k
trays/racks US$2k
filters/pumps US$2k
On costs
Packaging costs US$3k
cost of sales US$4k
fees/tax US$4k
distribution US$5k
Total outlay US$28k
Working
(4+4+2+2+4+4+5+3) = 28
Returns/contribution
R & D US$3k
Profit US$10k
Total price: US$41k
Working
(28 + 3 + 10 ) = 41
Value proposition
Yields high energy and protein for animals
250 units x $10k ea
Returns $2.5 m pa
Working
(250 x 10) = 2.5
Does your statement indicate that such an installation is viable?
My statement indicates that the installation is viable because; all activities in the statement are based on a long-term process which gives ample time for the business owners to finish up the installation. In addition, the statement above is a pond ended business model. To note, the statement aims at ensuring that the current business is strategically based on a long run. In addition, the installation will be viable because the leaders of the venture have reasonable from the venture that it will be able to continue operating and meet all its liabilities irrespective of the period of time (McGrath & MacMillan, 2009).
The installation of the statement is viable because it is prepared based on the concept of discovery-driven planning processes. In this case, the discovery-driven planning tool provides an orderly manner of uncovering the destructive implicit assumptions which could lead to the unnoticed slip of the business. In addition, the tool used to develop the statement imposes strict procedures that help in modeling the major economic standards of the business. Further, the statements cater for the update in the case of new data in the venture (McGrath & MacMillan, 2009).
According to the reverse statement above, the installation of a Dynamic Fodder system co-located at a FreislandCampina processing plant is possible because the costs incurred in the installation are not very high. In this case, the cost is estimated to be US$28k which can easily be covered up by the business owners(Joe, 2016). In addition, the business requirements are not so many for example steel shell, air/water, rack/trays and pumps/filters. Further, the business returns are promising which will give an upper chance for the installation of the Dynamic Fodder system. The statement has also broken down all the major cost involved in installing them by removing all the expensive materials such as water chill plants, container chassis, and many other which amount to at least US$85 for the operation of each ton.
Which key assumption underpins this assessment?
In this case, it assessment underlies a number of assumptions that can be used to understand or explain the installation of the Dynamic Fodder system. Therefore the assessment underlies in the following assumption; Firstly, the Dynamic Fodder system is a self-sustainable farming process that is so attractive during the period of the high cost of food and drought (Joe, 2016). Therefore, the Dynamic Fodder system provides a possible solution for food security irrespective of water availability, food condition, and weather. Therefore, it is assumed that Fodder has got various benefits such as reduction in the costs of feeding animals because fodder that is sprouted does not cost highly, seeds are fed in only five days, the fodder is always readily available and it can be done anywhere. Therefore, it is assumed that the installation of Dynamic Fodder system at Friesland Campina processing plant can help in the reduction of various problems that are faced by farmers as a result of the changing (Joe, 2016).
Lastly, the assessment is based on the assumption that the installation of a Dynamic Fodder system creates a wireless coverage that indicates that smart control processes are working very well. In addition, it is therefore assumed that if the installation is done appropriately, the system will help in supplying water and feeds to animals without the burden of venture owners moving up and down. Therefore, it is assumed that efficiency will be enhanced at the farm. In addition, it is also assumed that power, seed and water supply will be stable at the site. In this case, the business owners assume that the system will eliminate the problems of water supply in drought conditions. Therefore, it is assumed that the system will help in eliminating all issues related to water, seed and power supply (Joe, 2016).
Conclusion
In conclusion, the proper installation of a Dynamic Fodder system requires enough supply of water per day depending on the output of the feeds required. In this case, the management system should automatically provide enough water to be used for providing enough output. In order for a given plant to produce at least 1-2 tonnes of feed, it will require twenty hectares and two hundred seventy thousand liters of water for every tone. Therefore, setting up a reliable Dynamic Fodders system requires enough supply of water and electricity so as to achieve the major goal.On the other hand, the discovery-driven planning tool is now more helpful compared to the last twenty years. In this case, the idea has been in existing for very many years but it had never gained support from most people. However, the tool explains much on how people look at innovation. In addition, the tool educates people on how to operate a new venture.
References
McGrath, R. G. & MacMillan, I. C. (2009). Discovery-driven growth: a breakthrough process to reduce risk and seize the opportunity. Boston: Harvard Business Publishing.
Carlen, Joe. (2016). A Brief History of Entrepreneurship: The Pioneers, Profiteers, and Racketeers Who Shaped Our World. New York, NY: Columbia University Press. p. 1. ISBN 9780231542814.
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