How voice-automation can change us for good!
MSFTS
You come back home from a whole day of work, and plug in your keys to open the door. A simple scream of “Justine” and there she awaits you with a reply in a harmonic tone. Pretty soon you switch the lights on, get your heater running so the water is just warm for you to soak yourself in it, all while laying back on your recliner. How about even getting your coffee maker running so that just after the bath, you can entertain yourself with a nutty, hot coffee. If that’s not enough take this, you make calls to your kith and kin in the balcony overlooking the pale red sunset without reaching for your smartphone.
“Simple scream of Justine and she awaits you with a reply in a harmonic tone”
Now that you need to set yourself up for a steamy dinner, you toss over some meat. Thinking of reaching that chimney switch! don’t worry “Justine” has that covered. Want to Netflix while hogging on food, Justine is there to assist you. Lastly while you nestle your head on your soft pillow, you are reminded of a work objective that needs to be completed tomorrow. While still snug in your blanket you scream over some lines of instructions and Justine jots them down only to remind them again when you wake up.
Now you want nothing but peace, so the lights slowly dim down and you are accompanied to sleep with a curated playlist filled with nature sounds -whistling wind through columns of trees, water screaming down a brook, rustle of the autumn leaves, chirps of spring and creeks of the cold nights- that lull you to the trenches of dreams. This is the world with voice automation, splendid right? Ladies and gentleman I present to you “Justine”— your companion.
“Justine is like you personal assistant, just a little hotter than usual! ”
RELEVANT PRODUCTS IN THE MARKET: Voice automation is common nowadays. Amazon Alexa is a well-known device in the tech world. Though the uses seemed meek, or rather it was received as a ‘party trick gadget’ initially, it has insinuated itself in the lives of the users. It can help run the day in a smooth manner by running errands for you. Once the input is given through the voice, we just have to sit back and enjoy the magic. You can think of it as your own personal assistant. Such as, in a eccentric way, Jarvis for Tony Stark! Once the breakthrough was done, many companies followed suit. You’ve had Google spend some time in this market, reaping mediocre benefits.
“Its like Jarvis for Tony Stark”
Last quarter, Nest was reabsorbed into Google, where it has joined the company’s broader hardware team. Previously it was a subsidiary company under Alphabet, which aggregates financial results for all of its non-Google businesses in a segment called “Other bets.” As part of the change, for investor context, Alphabet today published a version of all of last year’s financials as if Nest were part of Google and not an “Other bet.”.
Regardless of the company, the advancement has been exponential. With each model they have added new tricks in the skillset. No wonder the whole concept of voice automation seems so mystic in a sense. It is like an empty void waiting to be filled with brain juices.
“The voice automation world is so mystic in a sense. It is like an empty void waiting to be filled with brain juices”
When certain revolutions take place in the world be it within a natural ecosystem or in a business world, it is important to adapt or you might risk getting left behind by the pack. An unfortunate such event took place in the year 2007. It was the year to reckon a force to fear with. Once Steve Jobs, calmly in his black Issey-Miyake turtle neck, released the iOS, he knew it was the next thing. Blackberry ended up being on the butt’s end of the whole change. Mike Lazaridis, the then CEO of Blackberry, refused to accept change, resulting in a disastrous exit from the smartphone market. The point to note is anticipating future by making the most of present.
I believe that complete Voice Automation will be the next change in everyone’s life. Imagine the possibilities that one could have with the perfect blend of AI and hardware. Voice Automation has always been one of the recurrent topics in the tech world. Its almost like a kid crying for attention. The uses range from daily living to something which needs rigorous practice for humans to learn such as controlling objects. Though initially bought by apple’s Siri, google assistant is now available in all smartphones equipped with android 10 or higher. These are fine examples of the capabilities of Voice automation. Alarms, reminder, calls, messages, meanings can all be popped up with a simple “Hey Google”. But integrating this to affect larger aspects of the world is next step we are waiting for. This is where my start-up comes into effect.
“Voice automation is almost like a kid crying for attention”
My company can act in either of the two ways. Either be a completely independent firm or collaborate with other companies for certain parts required to make “Justine”. In the first case, I look to supply and make all the elements required for my company instead of relying on other manufacturers. In simpler terms, I need to start with a manufacturing plant to create and design all the necessary parts- which we will get into soon- from scratch. This naturally provides great control over the products as the design and development would be in-house. By following this path, through research, we automatically end up with a product that has flawless finishing. Once the necessary parts are manufactured, they would be shipped to their respective branches.
Naturally, we need to establish branches in the required states and maintain them. Branches act as a sub-division of the company; they take the responsibility of the customers in a particular area.
The second method is the less risky option. The company would take help of the already made products and modify it at the end. Best example of this business model would be the, collaboration of Bang&Olufson- an audio product manufacturer- with car companies such as Aston Martin and Bentley. Rather than the former trying to make their own products which adds the factor of risk, they are relying on a trusted brand to take care of certain divisions. This results in a lesser expenditure in R&D, but a sacrifice on total revenue. These options add versatility to my project.
In the second method “The company would take help of the already made products and modify it at the end.”
Justine will be sold in a package. The package will consist of the “TOAST” (Transfer of Audio Signals and its Transformation)- the brain cell of the whole system- and other parts which include, Wi-fi router, audio processor, speaker, smart switches. Other than TOAST, not all parts may be built in-house. Justine will have subscriptions; the quality of the parts is dependent on the package. Just as phones, that have a lower spec model for a lower price, components of “Justine” might vary accordingly. The pricing will pay a key role in enticing the buyer to choose the higher package.
“TOAST- Transfer of Audio Signals and its Transformation
“TOAST” is the central hub which pieces all the information and uses it whenever necessary much like the CPU of a computer. TOAST is the most expensive component in the package, it consists of the most important components of “Justine”. “TOAST” will be installed anywhere in the house. If for cosmetic reasons, TOAST can be excluded from the interiors of the house. The ability to be connect to the Wi-fi router is the only question that determines the location of its placement. Once its installed, the audio processors, which are minute in shape, can be plugged into the ceilings preferably all over the house interiors. Audio processors help pick your voice commands and transfer it seamlessly to TOAST for processing. The smart switches play one of the key roles in the whole setup. At present there are two ways of setup of smart lights which are compatible with “TOAST”. If you get smart lights, they cannot be dimmed when the physical switches are turned off. Whereas for smart switches, regardless of the position of the physical switch, lights can be dimmed.
“TOAST is the central HUB which pieces all the information and uses it whenever necessary much like the CPU of a computer”
Speakers are used for the output. Output can be for various reasons such as, Music, or a reply to a question by the user. Lastly, a Wi-fi router must be placed in the house. This helps you stay connected to “TOAST” always. The router must never be switched off unless in an emergency, as this disrupts the whole functionality of the system it might affect the user experience.
“Justine” can be bought either online or offline. In the offline mode, the user will have to reach the nearest branch, and upon his liking choose the right package. Once the order is placed, a code will be sent to the registered mobile number. With an app for “Justine”, the user must submit the code, whenever possible. The app will automatically book an appointment upon the customers convenience for installation and demo purposes. For online mode, the whole idea remains constant, but the user must book it online through the website MSFTS.
MARKET DEMAND: 2019 has been a record-breaking year for the global smart speaker market. A total of 146.9 million smart speaker units were sold across the world throughout the last year. Amazon still remains the leading vendor in this field, even though some of its Chinese competitors are catching up. The major reason why the sales of smart speakers skyrocketed on a global scale during 2019 and especially during the fourth quarter is strong promotional activity combined with the brands’ introductions of new and innovative smart speaker products. The global market has experienced the highest growth ever recorded in the history of smart speaker sales. Analysts claim that 2020 is expected to be another good year for smart speakers in general. However, it should be kept in mind the global impact of the currently unstoppable coronavirus (Covid-19) that has spread wildly through China. It is not certain whether this catastrophe will leave a notable impact on the Chinese vendors. On the other hand, nothing is stopping Google and Amazon from continuing their sales trends and bringing forth new products to the market.
The smart speaker market is expected to grow at a CAGR of 17.1% (Units) between 2020 and 2025. Since the only plausible comparison for my start-up are smart speakers, I feel that these given statistics prove that the voice automation industry is going to grow exponentially thereby which can make investment fruitful.
“The smart speaker market is expected to grow at a CAGR of 17.1% units”
Novel product: There have been numerous companies making the mini bots which can assist you up to a certain extent. However, as of yet, there are no products like “Justine”. There will be no competition if its priced right as this is a unique product. If there was a huge market, with similar products, various factors have to be taken into consideration. Other products in the market are obsolete, they can’t offer customer service as “MSFTS” as they are bounded by predefined limitations. They lack in user experience, versatility, and the fun factor when compared to “Justine”. They are light years behind when compared to the features of “Justine”.
TARGETED CUSTOMERS: Whenever a company is built, one factor plays a key role- Targeted customers. Targeted customers are very crucial for the company’s blossoming. If the targeted customers fail to accept the products, then the whole purpose of the product is failed, thereby leading to a huge loss. It is suggested to carefully examine the targeted customers and make various estimates in the building of the product such as cost, areas of availability, the features of the specific product. You can’t sell a toothless man some candy, unless you are Jordan Belfort(sic)! “Justine” can be used in almost any region, as this is not a weather specific product. All you need is a home to install “Justine”. One change that needs to be made is the language, which will vary according to the location. Justine’s output voice can be personalized, and so can its mother tongue. The voice templates of celebrities can be used to create a specific voice style.
“The voice templates of celebrities can be used to create a specific voice style. Imagine, Justin Bieber or your mother’s voice calling out for you in the house!”
Justine’s output voice can be synchronized with other celebrities. Imagine, Justin Bieber or your mother’s voice calling out for you in the house! Customers have to pay an additional cost for the personalization feature. However, Justine will have a standard voice, which is the default for all products. Justine can be used by literally anyone, as all you need to do is speak. No phone, no app, no Bluetooth complications, just sit back and chill, so age would not be a factor for the most part. It’s almost for everyone, all the customer needs to do be able to afford it!
Functioning of Justine in a rough flow chart:
Once the customer buys the package, the voice must be synthesized, since it will help with a smooth conversation for Justine. As per the flow chart, the pre-samples of the voice taken from the customers, will be stored in “TOAST” forever. Just as a phone can house multiple fingerprints for recognition, “TOAST” can manage with multiple voices, once its synthesized and stored. Here the DCT can be used to convert the signal (spatial information) into numeric data (“frequency” or “spectral” information) so that the image’s information exists in a quantitative form that can be manipulated for compression. The signal for a graphical image can be thought of as a three-dimensional signal. The MFCC feature extraction technique basically includes windowing the signal, applying the DFT, taking the log of the magnitude, and then warping the frequencies on a Mel scale, followed by applying the inverse DCT. In fact, since the basic concept of voice automation is similar to voice recognition, we can even add a security feature for voice unlock!
“The pre-samples of the voice taken from the customers will be stored in TOAST forever. Just as a phone can house multiple fingerprints for recognition!”
BUDGET: The only catch in the whole project is the Budget. When companies make the first step into the vast of the unknown, it is with the awareness that it can go either way- Up or down. Since this is the first time in the world to make products such as Justine, the Research and Development to convert the concept into existence would be enormous. But as any experiment, the benefits reaped will be much larger. Funds would be needed to create awareness through marketing also. Approximately the budget for the whole project would be around 70 crores. But this would only cover the costs for the R&D. Further funds would be required for launching the product on production line. Manufacturing plants and branches would all sum to another 100 crores. The costs for the initial procurement of materials such as plastic and wiring would be taken into consideration at 50 crores.
Once the Manufacturing is completed, the marketing costs and shipping costs would be nominal at about 10 crores. Hence the gross total to get a complete finished product would be at 300 crores. One key advantage that plays into our favor would that since manufacturing plants will be in India, the substantial cost of the product wouldn’t differ much after packaging and shipping. After careful observation of the market trends for the product, the location of Manufacturing plants across the world can be agreed upon. The pricing of the product may vary from place to place.
The average cost of a smart home is $1,000 per room, with most homes having an average of 5 “smart rooms” added. A basic installation including a home automation system set-up ranges from $2000 to $4000. Depending on the level of automation system you are looking for and the size of your home, the cost of the system can range anywhere between $8000 to$10000 or more. The gross total for Justine to live in your house would be at $13000. Here is where the pricing strategy that has been implemented in Samsung can help entice customers. Since the target group is the younger population who mostly has a low income on average, it is recommended that the price penetration strategy would be best based on the research done by Kotler & Keller (2012). This strategy will involve initially introducing a lower price so to lure more youth to purchase and making it more affordable to this demographic. Also, we can use the Market Skimming Pricing Strategy: This is a strategy that is executed when launching highly priced commodities. It is aimed at maximizing profits by charging a higher price initially to the first customers. With time the price is lowered gradually to attract more consumers to purchase it. Companies will use this strategy to capitalize on those consumers that have the will of spending on a product that has cutting edge technology.
“The average cost for a smart home is 1,000$ per room”
As we discussed earlier, the packages should be stitched with perfect pricing, the richer the customer, the fuller the experience. Obviously, this will create a greed in the customers for more want resulting in higher sales in the expensive spectrum. Marketing plays an important role in creating a trend. Ask a 10-year-old about a gadget that he wants and 9 out of 10 it will be an apple product! Due to the momentum of the trend created by celebrities, everyone wants an apple no matter the specifications. It’s almost as if apple lives in its own lair. The point is to create greed in the customer, as best stated by Frank kern- the highest paid response internet marketer “Selling stuff is easy. All you gotta’ do is sell stuff that makes people happy and sell stuff that makes em’ even happier”.
““Selling stuff is easy. All you gotta’ do is sell stuff that makes people happy and sell stuff that makes em’ even happier”.
9 tricks I would employ for effective sales would be:
1. Creating Buzz with Exclusivity
2. Clever Use of Influencer Marketing
3. Leveraging on Word of Mouth
4. Less Expenditure on Traditional Marketing
5. A Quality Product
6. Maximally Utilizing a Hashtag (E.g.:#NeverSettle)
7. Affordability of the Device
8. Online Sales with no Offline Store at the Beginning
9. Building Loyal Community Members
RISK FACTORS:I do not observe any risks whatsoever, as it’s a pioneering project. If ever it was wading into competitive market, then maybe, however since it’s so unique, there are no competitors. Besides there is a market now for expensive products as well! If people are foolish enough to buy phones for 90k, who wouldn’t mind spending mere 10k for an automated house!
GANTT CHART FOR THE TENTATIVE PLANNING:
If Voice automation is a pot of gold, we have just scraped the top of it! Fortunately, we seem to be on the right path to reach the maximum soon. There is no looking back as of yet. Cheers Justine!
