Steering Wheel With Heart-Rate Monitor: SWOT and PEST Analyses - Assignment Example

? Steering Wheel With Heart-Rate Monitor (SWOT and PEST Analyses) of (affiliation) Steering Wheel With Heart-Rate Monitor The new technology being proposed in this paper is a steering wheel with a heart-rate monitor embedded on the steering wheel itself. To be realistic about it, this new technology can be in widespread use within a period of twenty years or even less, considering how new technology diffusion (how it is spread) is quite fast these days, compared to earlier decades, because of a wide use of computer models in making simulations in design and engineering (Shao, 2007). These computer-related programmes make it easier to ask ‘what if’ questions, make any technical changes or to add enhanced features to any existing design, with alterations in manufacturing made easy using visualisation and graphics (Lieu & Sorby, 2009). If consumer safety advocacy groups can be enticed to ask for this new technology, then government agencies tasked with road safety will be interested and call for early adoption. Other factors can significantly impact the adoption of this new proposed technology, such as the availability of research funding and the eventual equity funding to have a start-up firm. The adoption of air bags took thirty years from initial patent application to making it a standard safety feature today (Pressler, 1998). A special steering wheel will cost about US$25 and the heart-rate monitor will cost an additional US$50 (depending on the brand and model), so the two important devices will total approximately US$75 to produce or manufacture. The car alarm rigged to the heart-rate monitor will cost an additional US$25, a microcontroller will cost about US$100 and the GPS device will cost around US$100, so these four important devices (steering wheel with heart-rate monitor, microcontroller, car alarm, and GPS device) will cost a total of US$300, with another US$100 for direct labor costs for the installation. The entire device will substantially go down over time when expertise is acquired in making it, called the learning curve in economics (Jaber, 2011). A positive thing about this new technology is an expected reduction in car or motor vehicle accidents caused by drowsiness (sleepiness), sudden heart attacks or drunken driving (as a breath analyser will be incorporated into the device). People who suffer from hypertension will also be benefitting from this new device. In addition, older people who still want to drive will be safeguarded by the heart-rate monitor, which will serve as a health warning device for any changes in their heartbeat or blood pressure. Driving while sleepy is a very dangerous condition, but most drivers usually just ignore this sign because they think (erroneously) that they can still manage to drive safely while in truth, their reflexes slow down and judgment is impaired. There are many ways to avoid such accidents, but the only effective countermeasure against this is to stop driving (Surani & Subramanian, 2011). So, the heart-rate monitor is a preemptive device intended to proactively prevent accidents despite the judgment of people it is safe to drive when, in fact, they are putting themselves in harm’s way and commit errors posing them at risk. The foremost drawback of this new device is the cost because it will definitely add a significant premium to the total purchase price of a vehicle. It is worth noting this had been the same argument put up by people who oppose adding new features or resist adopting a new technology (Postman, 2011), but people have seen the wisdom of using safety features included in a vehicle in order to enhance driver and passenger safety. This is a common initial objection to the proposal (back then) of installing air bags on all vehicles, in which air bags were first offered as just options but later were made required standard features. It is reasonable to expect the same objection to the heart-rate monitor, and the maker of this device will have to undertake a serious marketing campaign to address this legitimate issue early on and successfully market it. SWOT Analysis Strengths and weaknesses are internal dimensions of the analysis as these two components relate to the qualities of a firm while opportunities and threats are external because they relate to factors outside of an organization over which it may not have any control. The first two are fully controllable while the latter two may be partly controllable (Bohm, 2009). Strengths The device is novel (totally new idea) and is easy to install or incorporate. 1. A totally new idea that will catch the imagination of the motoring public: Novelty – This device is something that is totally new and does not resemble any existing device. This newness will create for it a new market niche, and so there will be no competitors yet (as a first-mover innovation) and it will be protected by a patent so no copycats sprout in the market. It will be a groundbreaking or a breakthrough in enhancing road safety for all groups of people. Sometimes all it takes is a new idea or a new concept generated from out-of-the-box thinking to conceive something people did not see before. A medical device such as a heart monitor installed on the steering wheel is a revolutionary idea indeed because it combines medical and car technologies. 2. Ease of installation will entice the public to buy this new device: Easy to install – The whole design can be incorporated during the manufacturing process so that additional steps are eliminated altogether or no new steps are added during the installation of the device into the steering wheel itself. A car alarm, breath analyser, microcontroller, and a GPS device can be installed or incorporated into the existing wiring system of a motor vehicle with only very little or minor changes required. Most vehicles today already have an integrated circuit to control many of its engine functions, so this will only require re-programming of the engine computer motherboard to a certain extent. A modular model of this new device can be made available in the market in which people, who operate car shops, will be specially trained to install it on older models. It will require only a few days of training at most. Weaknesses The high initial price tag and resistance of people to anything new 1. The total price tag of US$400 ($300 for the device and $100 for the labor cost) is a deterrent for people to buy this new device, especially in view of its being new, and therefore its benefits are still unproven or its usefulness is still to be demonstrated: US$400 is still a substantial amount for a new device. Car makers today are offering many discounts and freebies to attract new car buyers, and so a device that costs this much could discourage potential buyers from making a purchase. People still need a lot of persuasion to make them decide to have this device installed on their cars for their own safety and that of their passengers. Potential car buyers may opt to have other features installed on their cars instead of the heart-rate monitor which obviously has more benefits for them compared to having an exotic or high-brand car or video system installed on their cars. 2. Resistance to change is a common characteristic of most people (Palmer, 2004): It is a natural tendency to stick to the usual way of doing things, and people will not easily budge from their comfort zones to try anything new or unproven. Car manufacturers will also be resistant to have this new device, which will add to the price tag of a vehicle at a time when they are offering discounts. Government regulatory agencies still have to be convinced also on the wisdom of using this new technology as every year they receive so many proposals. Opportunities A similar version for motorcycle riders and tie-ups with car makers 1. A stripped-down or basic version of the monitor can be marketed to other niches: Other possible buyers will be motorcycle riders and bicyclists who will find the device useful for them before they go out, since it will work similarly attached to their wrists or wired to their arms or to their chests. This concept is the same as with the GPS device, in which smaller hand-held versions were made available to bicycle or motorcycle riders and made portable. The monitor device can even be used by elderly citizens in their nursing homes to alert their nurses and caregivers if there is something wrong with their hearts. 2. A tie-up with car manufacturers will ensure marketability as it will get much-needed credibility among car buyers who see it as an endorsement by car makers: There will be less marketing expenses involved as car makers will market it. Sales will be greatly increased in proportion with the total volume of car sales. It is easier to get market acceptance once car makers are convinced to install it. Threats The two threats seen are from competition and government regulations. 1. Competition – Even with a valid patent, it is still hard to protect intellectual property: Copycats and fake or imitation versions will proliferate in the market, and it is difficult to control these items if they look very similar to the original. Other competitors might be able to offer an enhanced version of the same product with better features and added functionalities not originally envisioned. Some competitors might offer similar heart-rate monitors at a much lower price. 2. Government regulations – These regulations are generally complex and cumbersome: Regulations are often very complex, contradictory and cumbersome to comply with. Regulations can change quite often depending on the political situation. Regulations can be confusing as to which rules and agencies to follow first. PEST analysis is an acronym used in business analysis to make strategic decisions, and a very useful tool for making a quick environmental (external factors) scanning that can affect a business organisation (Bensoussan & Fleisher, 2012). The following paragraphs examine PEST in relation to the introduction of the heart-rate monitor as a new safety technological invention. Political This factor can be positive or negative, depending on the current sentiments. 1. It will be positive if both politicians and consumer groups see the wisdom of it: If politicians will listen to car buyers concerned about car safety, then they will advocate its adoption as a standard feature in all future car models. Consumer advocacy groups must also see the need for this new device. Political lobby groups can be influenced and convinced this device is necessary. 2. Negative things can happen in a political situation, so that this device will not sell: Consumer advocacy groups may see this new device as unnecessary cost. Consumer safety groups may question its reliability in public forums. Some product defects may occur and the new device does not work as expected. Economic Increased safety leads to fewer accidents and fewer lost man-hours. 1. It is always a positive financial situation when people do not suffer road accidents: Fewer road accidents will contribute to greater productivity as there are fewer absences and paid sick leaves due to reduced hospital stays. Fewer accidents contribute to a higher economic output for the entire nation. Manufacture of the new device will lead to additional use of resources such as plastics and metals, thereby contributing to higher economic activities. 2. There can also be negative impacts of any new invention as it can displace jobs: Fewer accidents mean less patients in hospitals and nursing staff is reduced. There is less work for car repair shops as there are fewer car wrecks now. Some jobs in medical facilities are eliminated due to duplication or redundancy. Social The social impact of any new invention is often hard to forecast or predict. 1. People are now made more aware of taking good care of their health: The presence of the heart-rate monitor is a constant reminder to all drivers. Car passengers will now insist that the driver check his blood pressure first. Elderly people can be more confident while driving now that help is always nearby. 2. While the new device can impact positively, it may have negative side effects too: Drivers can get over-confident and still insist on driving despite being sleepy. People may defer going to a doctor and rely more on the heart-rate monitor. Some drivers can get reckless due to over-reliance on the new monitor. Technological There are still many ‘bugs’ to be worked out before this new device works perfectly as expected under all driving conditions (even during adverse situations). Since this device is primarily intended as a health device that will monitor the blood pressure and heart beats of drivers, it can be used to instill in people to be health conscious: This device can be considered as a breakthrough technology because it helps all people to watch their weight gain and to reduce obesity permanently. Other similar devices can be invented using the same principles, such as an eye device to monitor visual acuity of drivers (if they are far- or near-sighted). A hearing device can be incorporated into the heart-rate monitor so that drivers can hear better, using audio technology already in existence to improve hearing. Applying for a Patent This section details some of the important issues associated with application for a patent specifically in New Zealand, but some rules apply internationally. The aim of a patent application is to gain an exclusive right (protected by the government) in a new invention which is guaranteed for twenty years. This means no one else can imitate, copy or even try to commercialise the same idea or invention; the intent is to encourage people to invent and gain financially from their efforts. A registered patent (applied for and duly approved) is a very valuable asset indeed if it happens to be a commercial success in terms of market acceptance. It is valuable in the sense it can be traded, sold or licensed (Intellectual Property Office, 2012). One can apply for a provisional (temporary) patent pending filing for a permanent or final patent application (once the invention has been perfected and ready for market). However, it is also advisable to check the listing of already existing patents, as it might happen there are similar products already patented or basically using the same idea or concept. This will help to avoid future controversies and even legal actions from existing patent holders, as one might unknowingly infringe on an already existing patent since no one admittedly has a monopoly on ideas. It is wise to consult a patent attorney who is familiar with intellectual property laws. The final patent application must contain the complete name of the applicant, a service address in New Zealand (either commercial or residential address, post office box or document exchange box); a temporary patent can be withdrawn anytime while a patent that was approved already must be surrendered to the Patents Office. Moreover, those whose applications were approved must renew their patents on the 4th, 7th, 10th, and 13th anniversaries from the date complete specifications were filed. Patents must be renewed within six months from the renewal due date; otherwise, the patent will lapse and the invention will enter the public domain (it is now free). A final patent application must contain very detailed specifications of the said invention. Family members need not worry about their elderly parents driving alone if they have put a heart-rate monitor in the car; this system will issue an alert if there is a medical emergency. Figure 1. Steps in the Patent Application Process in New Zealand References Bensoussan, B. E. & Fleisher, C. S. (2012). Analysis without paralysis: 12 tools to make better strategic decisions. Upper Saddle River, NJ: FT Press. Bohm, A. (2009). The SWOT analysis. Berlin, Germany: GRIN Verlag. Intellectual Property Office. (2012, June 1). Why register a patent? Retrieved from http://www.iponz.govt.nz/cms/patents/why-register-a-patent. Jaber, M. Y. (2011). Theory, models, and applications. Boston, MA: Taylor & Francis Group. Lieu, D. K. & Sorby, S. A. (2009). Visualization, modeling and graphics for engineering design. Florence, KY: Cengage Learning. Palmer, B. (2004). Making change work: Practical tools for overcoming human resistance to change. Milwaukee, WI: ASQ (American Society for Quality) Press. Postman, N. (2011). Conscientious objections: Stirring up trouble about language, technology, and education. New York, NY: Random House, Incorporated. Pressler, L. (1998). Air bag safety: Hearing before the Committee on commerce, science, and transportation in the U.S. Senate. Darby, PA: DIANE Publishing Company. Shao, T. (2007). Toward a structured approach to simulation-based engineering design under uncertainty. Ann Arbor, MI: ProQuest Information Company. Surani, S. & Subramanian, S. (2011). Sleep and safety. Oak Park, IL: Bentham Publishers. Read More