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Need Water? there’s an APP for that! (Affordable Pressure Pump)
Team Need Water?Laura JonesNate MengIsaac Penny&IDE Myanmarpresent:a valve story: redesigning the pressure pump
thebigideaSimplify the design of the pressure pump to make it more affordable and robusttarget: valve system47 fewer partsresult:$10 price reduction
INTRODUCTIONUSER + NEED = INSIGHTBUSINESS CASEHOUSEHOLD ECONOMICSIMPACT ON A FAMILYNATIONAL IMPACT: SALES FORECASTDESIGN DIRECTIONMEET PP VERSION 1.0LESSONS FROM THE PRLMEET THE PROTOTYPEFUNCTIONALITYIMPLEMENTATION PLANCHANGING THE IDE PRODUCT MIXDISTRIBUTION AND MARKETINGPRICING STRATEGYSALES DRIVERS AND COST SAVERSBENEFITS TO IDENEXT STEPSTESTINGINTELLECTUAL PROPERTYMANUFACTURINGWHAT NOW?
user: a poor farmer in myanmarMeet AungKoKo.Cash crop farmer. Son uses hand pump.He feels like giving up. He can water only a small area & makes little profitConsidering buying a Suction Pump. Dry season income: + $1/day.With a Pressure Pump, he could earndouble.
needs…safetyconvenienceflexibility(the benefits of a Pressure Pump)
to eliminate…unnecessary labordangercarrying 60 lbs of H20 for six hours a day in 95° heat11-yr old treadling 8 ft in the air in 95° heat(the drawbacks of a Suction Pump)
at a cost of $35 US or less…UNITS SOLD$25-$35 products are in the pricing sweet spotNargisYEARWhy this price point? Despite unprecedented economic hardship users can still save to purchase. Value is more important than ever.
P.O.V. A poor farmer in Myanmar needs the convenience, flexibility, and safety of a Pressure Pump at the cost of a Suction Pump(Why? More Plot for your Kyat*)
Users get more plot for their Kyat*(*Kyat = Myanmar currency)A Pressure Pump user can irrigate 2X as much land as Suction Pumps during the dry season,and earn roughly 2X the income
$138school expenses for 3  childrenadditional agricultural inputs1 pigseed funding for a small business6 flocks of ducks1 fishing netrepurchase of pawned items3 months of medical care for tubercular child44 mosquito nets1 extra meal/day all year for a family of 46 flocks of chicks
Enabling users to upgrade from suction to pressure pumps will have significant country-wide impact We are here (2009)NargisWealth created by the APP in a single year: 22,143 * $138 = $ 3,055,738 inMyanmar
design direction.
inside the existing IDE pressure pump:the 4-valve system
prototyping processresolution
from four to one3412
the two finalists:  rotary vs. sliderRotary Valve狠狠撸r Valve
meet the winning slider valve
more about the slider valveposition 1position 2
preliminary testing
performance testingFlow Rate25% of current Pressure Pump(200 gallons/hr)Port size is limiting factor:APP port is 1/10 the size of existing port, can be madelarger
implementation plan.
At $35, the APP should replace the current pressure pump and largely replace the mobile suction pumpUNITS SOLDRemember the pricing sweet spot?($25-$35)YEARThe APP simplifiesIDE’s product line
who else needs to buy in?Demonstrators are the key to distribution and marketing. They control channel & need to see market potential (price + benefits)
Currently, every customer must make a trade-offoptions within current IDE product linedominant low-end choicedominant high-end choiceThe APP simplifies the decision and reduces the guess-work for the demonstratorNone   Low    Med     Hi   Very Hi
insights on adoption:in order for users to buy it, demos need to show it. They usually show 2 models per demonstrationeasy to assemblePressure PumpKEYMobile FrameCurrent IDE ProductAPPexpensivecheapFrequently Demo’dTripodTargeted nicheNew demo setPump Headdifficult to assembleDemonstrator adoption is driven by unit sales potential (linked to commission) and ease of installment
How to hit the $35 price point?while the APP requires a subsidy to hit the necessary price point, the robustness of the product will offer IDE compensatory benefits…
Replacing the current pressure pump with the APP,will increase sales while decreasing overhead costsretail pricepartsunits soldmaterial costsCOGSdirect labordistribution & marketing costrework in QC demonstrationsfield repairsword of mouthreplacement
IDE benefits…simplercheaperreworksproductbetterrepairsreplacementsfewercomplaintspositive word-of-mouthdemonstrationsmoreunits soldreputationefficiencyuse of fundsbetterimpact
H2 get from design to manufacturing: fieldtestingDurability and User Feedback: Key to success and design iteration Forty pump field test: Three MonthsManufacture valve components in US:High tolerance (0.005”) 					           Lowers integration timeWill give IDE|M right of first refusal on Intellectual PropertyEstimated cost $14,422
manufacturingProcesses   Basic Lathe and Mill   Welding for valve attachment   Injection Molded Valve / BodyMaterials   Plastic Valve / Body for CorrosionTimeline   Initial Production in Myanmar   Import some components, if       cost savings can be realized
what next?increase port sizefield testdetermine IP strategyiterate on designfile provisional patentmanufacture in-countrysecure product patentcollect feedbackdetermine whether to licenseiterate on manufacturingSell via IDE Myanmarstabilize manufacturingmanufacture in Chinaexport in test market (India) export worldwide
conveniencetheAPPcan offer poor farmers in Myanmarthe convenience, flexibility, and safety of a Pressure Pump at the cost of a Suction Pump flexibility&(no more 11-yr-olds treadling 8ft in the air)safety
With a $35 investment in the APP, he could earn an extra$138each year
thanks to…IDE TEAMCOACHESSPONSORSTEACHING TEAMJim TaylorDebbie TaylorDavid KlausYin Mon SoeYu Yu AungJeff BurkebileKrista DonaldsonStuart CoulsonAnurupaRaoAlan AsbeckVicky ChiangJim PatellDave BeachErica EstradaCarlyGeehrAudience!Need Water? there’s an APP for that! (Affordable Pressure Pump)Laura Jones . Nate Meng . Isaac Penny
appendices
customer care report dataPressure Pump breakage statistics as compared to other models
quality control team dataREMOVED in APP
quality control team data
but, if this is such a huge opportunity, why is the $35 pressure pump not already available?a timeline2006“Under Pressure”Target Cost: $25Part Count: 142009APPRetail Cost: $35Part Count:982007IDE Pressure PumpRetail Cost: $45Part Count: 148The goal of the first Pressure Pump team was similar to ours—design a pump that cost ~$30. But, from design to manufacturing, on the fly decisions increased part-count and price. The APP simplifies the design without sacrificing functionality.
slider valve: position 1
slider valve: position 2
Leakage TestLeakage Test
Supposed to come out Pressure Port
Combined Leakage out incorrect ports was 23%Field Test Cost Breakdown
Additional design opportunitiesreinforced tripod framechange chain to wiretreadles sold separatelyplastic valve plastic pump head
port-size comparison
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Need water powerpoint

  • 1. Need Water? there’s an APP for that! (Affordable Pressure Pump)
  • 2. Team Need Water?Laura JonesNate MengIsaac Penny&IDE Myanmarpresent:a valve story: redesigning the pressure pump
  • 3. thebigideaSimplify the design of the pressure pump to make it more affordable and robusttarget: valve system47 fewer partsresult:$10 price reduction
  • 4. INTRODUCTIONUSER + NEED = INSIGHTBUSINESS CASEHOUSEHOLD ECONOMICSIMPACT ON A FAMILYNATIONAL IMPACT: SALES FORECASTDESIGN DIRECTIONMEET PP VERSION 1.0LESSONS FROM THE PRLMEET THE PROTOTYPEFUNCTIONALITYIMPLEMENTATION PLANCHANGING THE IDE PRODUCT MIXDISTRIBUTION AND MARKETINGPRICING STRATEGYSALES DRIVERS AND COST SAVERSBENEFITS TO IDENEXT STEPSTESTINGINTELLECTUAL PROPERTYMANUFACTURINGWHAT NOW?
  • 5. user: a poor farmer in myanmarMeet AungKoKo.Cash crop farmer. Son uses hand pump.He feels like giving up. He can water only a small area & makes little profitConsidering buying a Suction Pump. Dry season income: + $1/day.With a Pressure Pump, he could earndouble.
  • 7. to eliminate…unnecessary labordangercarrying 60 lbs of H20 for six hours a day in 95° heat11-yr old treadling 8 ft in the air in 95° heat(the drawbacks of a Suction Pump)
  • 8. at a cost of $35 US or less…UNITS SOLD$25-$35 products are in the pricing sweet spotNargisYEARWhy this price point? Despite unprecedented economic hardship users can still save to purchase. Value is more important than ever.
  • 9. P.O.V. A poor farmer in Myanmar needs the convenience, flexibility, and safety of a Pressure Pump at the cost of a Suction Pump(Why? More Plot for your Kyat*)
  • 10. Users get more plot for their Kyat*(*Kyat = Myanmar currency)A Pressure Pump user can irrigate 2X as much land as Suction Pumps during the dry season,and earn roughly 2X the income
  • 11. $138school expenses for 3 childrenadditional agricultural inputs1 pigseed funding for a small business6 flocks of ducks1 fishing netrepurchase of pawned items3 months of medical care for tubercular child44 mosquito nets1 extra meal/day all year for a family of 46 flocks of chicks
  • 12. Enabling users to upgrade from suction to pressure pumps will have significant country-wide impact We are here (2009)NargisWealth created by the APP in a single year: 22,143 * $138 = $ 3,055,738 inMyanmar
  • 14. inside the existing IDE pressure pump:the 4-valve system
  • 16. from four to one3412
  • 17. the two finalists: rotary vs. sliderRotary Valve狠狠撸r Valve
  • 18. meet the winning slider valve
  • 19. more about the slider valveposition 1position 2
  • 21. performance testingFlow Rate25% of current Pressure Pump(200 gallons/hr)Port size is limiting factor:APP port is 1/10 the size of existing port, can be madelarger
  • 23. At $35, the APP should replace the current pressure pump and largely replace the mobile suction pumpUNITS SOLDRemember the pricing sweet spot?($25-$35)YEARThe APP simplifiesIDE’s product line
  • 24. who else needs to buy in?Demonstrators are the key to distribution and marketing. They control channel & need to see market potential (price + benefits)
  • 25. Currently, every customer must make a trade-offoptions within current IDE product linedominant low-end choicedominant high-end choiceThe APP simplifies the decision and reduces the guess-work for the demonstratorNone Low Med Hi Very Hi
  • 26. insights on adoption:in order for users to buy it, demos need to show it. They usually show 2 models per demonstrationeasy to assemblePressure PumpKEYMobile FrameCurrent IDE ProductAPPexpensivecheapFrequently Demo’dTripodTargeted nicheNew demo setPump Headdifficult to assembleDemonstrator adoption is driven by unit sales potential (linked to commission) and ease of installment
  • 27. How to hit the $35 price point?while the APP requires a subsidy to hit the necessary price point, the robustness of the product will offer IDE compensatory benefits…
  • 28. Replacing the current pressure pump with the APP,will increase sales while decreasing overhead costsretail pricepartsunits soldmaterial costsCOGSdirect labordistribution & marketing costrework in QC demonstrationsfield repairsword of mouthreplacement
  • 30. H2 get from design to manufacturing: fieldtestingDurability and User Feedback: Key to success and design iteration Forty pump field test: Three MonthsManufacture valve components in US:High tolerance (0.005”) Lowers integration timeWill give IDE|M right of first refusal on Intellectual PropertyEstimated cost $14,422
  • 31. manufacturingProcesses Basic Lathe and Mill Welding for valve attachment Injection Molded Valve / BodyMaterials Plastic Valve / Body for CorrosionTimeline Initial Production in Myanmar Import some components, if cost savings can be realized
  • 32. what next?increase port sizefield testdetermine IP strategyiterate on designfile provisional patentmanufacture in-countrysecure product patentcollect feedbackdetermine whether to licenseiterate on manufacturingSell via IDE Myanmarstabilize manufacturingmanufacture in Chinaexport in test market (India) export worldwide
  • 33. conveniencetheAPPcan offer poor farmers in Myanmarthe convenience, flexibility, and safety of a Pressure Pump at the cost of a Suction Pump flexibility&(no more 11-yr-olds treadling 8ft in the air)safety
  • 34. With a $35 investment in the APP, he could earn an extra$138each year
  • 35. thanks to…IDE TEAMCOACHESSPONSORSTEACHING TEAMJim TaylorDebbie TaylorDavid KlausYin Mon SoeYu Yu AungJeff BurkebileKrista DonaldsonStuart CoulsonAnurupaRaoAlan AsbeckVicky ChiangJim PatellDave BeachErica EstradaCarlyGeehrAudience!Need Water? there’s an APP for that! (Affordable Pressure Pump)Laura Jones . Nate Meng . Isaac Penny
  • 37. customer care report dataPressure Pump breakage statistics as compared to other models
  • 38. quality control team dataREMOVED in APP
  • 40. but, if this is such a huge opportunity, why is the $35 pressure pump not already available?a timeline2006“Under Pressure”Target Cost: $25Part Count: 142009APPRetail Cost: $35Part Count:982007IDE Pressure PumpRetail Cost: $45Part Count: 148The goal of the first Pressure Pump team was similar to ours—design a pump that cost ~$30. But, from design to manufacturing, on the fly decisions increased part-count and price. The APP simplifies the design without sacrificing functionality.
  • 44. Supposed to come out Pressure Port
  • 45. Combined Leakage out incorrect ports was 23%Field Test Cost Breakdown
  • 46. Additional design opportunitiesreinforced tripod framechange chain to wiretreadles sold separatelyplastic valve plastic pump head
  • 48. Need Water? there’s an APP for that! (Affordable Pressure Pump)