KSU Masters Project Journal
Kent State University - Master's Project Proposal Spring 2018
Smart Kitchen: The Amazon Fresh Refrigerator & Voice based UX integrated Alexa
Week 2 - Scope
Rough Script for Vision of the Business and Business Model
Finalize the scope of the Smart Kitchen concept and within a refrigerator and Phone Screen.
Continue the exploration of VUI Techniques
Continue the exploration of other small Smart Kitchen Startups
Rough Sketches for an interactive experience with a User, Refrigerator, and Phone Screen.
Week 2 - Rough Script for Vision of the Business and Business Model
Masters project focus in detail
5% of the project time Will be spent understanding the existing business strategies but home food delivery service sector currently supports and how to synergize Amazons existing food services to compete in the home food delivery genre.
5% of the project time will be spent understanding and synthesizing a new foot forward for Amazon in the mail kit subscription service. Can Amazon, with their existing food services, compete in the mail Kent subscription sector against other publicly traded companies like blue apron and hello fresh? If so, how?
90% of the project will be spent synthesizing the business strategy and the smart home appliances and the UI/HR technology into an Amazon consumer product tentatively been called a SMART-Amazon Fresh refrigerator with Meal-Kit subscription services by Whole Foods.
Sector Overview and Project Synergy
Amazon Delivery Services is already set up to deliver meals and meal boxes on a subscription basis.
Amazon, with its vast market share in Amazon Fresh and distribution (Amazon Flex) in the US can compete with Home Foods Delivery Services easily. Amazon will need Content recipes to sell as subscriptions and fulfill from Fresh and Wholefoods.
Amazon can easily move into the appliance sector and infuse it’s VUI Alexa platform into new home SMART appliances and compete with companies like Samsung.
Amazon’s VUI Alexa platform is a dominant solution in the VUI consumer home sector. Leveraging this strength combined with a SMART Home Appliance like a refrigerator make s for a compelling story.
Business Model & Strategy
The opportunity to combine four (4) large and highly popular areas of interest in the exciting world of foods and technologies are at hand. The following strategy will lay out at a high level the broad concepts and an approach for execution. This business model and strategy is meant to simply tee up the discussion while focusing more on the prototyping area of the ideation and design phase.
Four areas of focus:
Meal-kit subscription service - Blue Apron
Smart Home Appliances - Samsung Appliances
VUI’s in-home technologies (Like the Alexa Echo Dot by Amazon)
Business potential in revenues - Four areas of focus:
Industry Analysis - Home foods delivery service - $76 billion
The venture capital investment firm Cowen predicts a 79 percent surge in the total U.S. food delivery market by 2022, from $43 billion to $76 billion. Additionally, Cowen upgraded GrubHub.com following results from a recent survey that showed that 34 percent of respondents use their services. Online delivery currently represents 43 percent of all delivery orders.
Industry Analysis - Meal-kit subscription - $5 billion
The meal-kit subscription sector, which has mushroomed to $5 billion in sales. This number, as reported in Meal Kits Delivery Services in the U.S., 2nd Edition, a new research report by Packaged Facts, shows incredible potential for growth. The meal-kit subscription sector is doing so well that Walmart has entered the market and plans to push its meal-kit business out to 2,000 stores this year alone. The company has already rolled out meal kits services to 250 stores with 2,000 stores expected this year (2018). The move comes as big-box stores and grocers push food e-commerce with the hopes of large rewards in revenues.
Industry Analysis - Smart Home Appliances Sector - $14 Billion+
Fact: 10 percent of households will be smart by 2025
The smart Appliance and Smart Home Market began a run at new revenues in 2010 with fewer than 0.5% of homes in the United States connected. Of these connected devices, thermostats, lighting, security and entertainment systems were some of the first.
Source: IHS Markit smart home intelligence service By 2017, 7% of households in the United States will be connected. On average, American Homes will have six devices/home connected to the internet and accessible via mobile apps and cellular devices like cell phones and tablets. By 2025, it's expected that 10% of households will be wired as Smart Homes.
Fact: Smart home device revenue will exceed $14 billion in 2017
The global market for smart home was worth $14.7 billion in 2017, with the Americas region representing 48 percent of global revenues.
In 2021, the EMEA region will represent the largest portion of device revenue with a 42 percent global share.
When excluding large ticket items, such as major appliances, the global market size for smart home devices is forecast to be worth $3.3 billion by the end of 2017, reaching $9.4 billion in 2021.
Although the EMEA and Americas regions are expected to represent more than 70 percent of revenues for smart devices over the next five years, Asia is expected to dominate in terms of unit shipments. In 2021, the Asia region is expected to represent about 46 percent of unit shipments. Leading the unit shipments in Asia in 2021 will include light bulbs, air quality sensors, and video cameras.
Source: technology.ihs.com August 14, 2017 “Global Smart Home Market to Exceed $14 Billion in 2017”
Industry Analysis - VUI’s in-home technologies - $55.17 Billion
As speech recognition accuracy goes from 95% to 99%, all of us in the room will go from barely using it today to using it all the time. Most people underestimate the difference between 95% and 99% accuracy. 99% is a game changer. ~ ANDREW NG, CHIEF SCIENTIST AT BAIDU
The voice user interface and global voice recognition Market size is valued at 55.17 billion dollars in 2016. This Market size is expected to grow by approximately 11% moving into 2024. High growth rates have been witnessed by Rising popularity voice-activated devices and appliances many of which are found in homes, hotels, and businesses. Some of these devices include lights, thermostats, appliances, and voice-enabled devices. The software segment of this Market is projected to become the fastest growing segment expanding at 17.4% into mm and 24. The component segment, Has witnessed two significant growth specifically in the voice recognition Solutions area. This includes automatic speech recognition or (ASR), speaker verification, and audio mining.
Artificial intelligence-based solutions application segment
The artificial intelligence-based solutions application segment is expected to gain momentum as the system recognizes the patterns of speech accurately. Artificial intelligence exceptionally transforms the speech into well-structured algorithms by undergoing certain stages including the representation of speech units, formulation, and development of recognition algorithms, as well as the demonstration of correct inputs. This segment accounted for approximately 30% of the overall market share (in terms of revenue). The voice recognition market, on the basis of applications, can be classified into artificial intelligence, and non-artificial intelligence.
The non-artificial intelligence segment accounted for the majority of the overall market share (in terms of revenue) in 2015. The segment is predicted to lose its market share by 2024 (in terms of revenue).
Source: Grandviewresearch.com Published Date: Jul, 2017 “Artificial Intelligence Market Analysis By Solution (Hardware, Software, Services), By Technology (Deep Learning, Machine Learning, Natural Language Processing, Machine Vision), By End-use, By Region, and Segment Forecasts, 2014 - 2025”
Source: Grandviewresearch.com Published Date: Feb, 2018 “Voice Recognition Market Size, Share & Trends Analysis Report By Component, By Application (Artificial Intelligence, Non-Artificial Intelligence), By Vertical, By Regions, And Segment Forecasts, 2014 - 2024”
Problem Statement - Rough Draft
How to source and expose healthy culturally unique foods and food recipes to users. Monitor the use of food quantities, and provide instructional guidance of recipes, via a merger of artificial intelligence (AI) software and consumer appliances to users with little working knowledge of cooking.
We want our Prime Members to be exposed to healthy culturally unique foods, access ingredients, and food recipes, all brought to their doorsteps with the added bonus of monitoring all the ingredients via a consumer appliance refrigerator armed with the Alexa AI Platform. (Vision)
Today, competition existed in the Home-foods delivery service and the Meal-kit subscription service sectors that we can easily compete with and provide deeper customer experiences than competitors like Blue Apron, Uber Eats, and GrubHub. Our recent purchase of whole foods and our vast distribution network will allow us to expand our foods services. However, a missing component to the user experience in America's kitchens is exposure to fresh food ideas and preparation instruction in the kitchen. (Issue Statement)
What is the consumer's problem? We don't know what we want to eat, where to buy the ingredients, or how to make the recipe, nor do we have the time to figure it out on our own. Therefore I stick to what I know which is boring and predictable. My friends have spent hundreds of dollars on cooking classes. How can I bring that into my kitchen?
I will use the Kaizen Method to evaluate, advance, and deploy the new services in a timely manner. (Method)