SMART FRIDGE
Introduction
Each year, approximately 1.3 billion tonnes of consumable food is wasted or lost, this accounts for one third of the food produced (UNEP, 2009; FAO, 2011). Food wastage accounts for an economic loss of $750 billion annually (UN, 2013) and its effects extend environmentally. It results in a waste of resources, such that of water, land, energy, labour and capital. The food production processes require chemicals such as pesticides, fuel, as well as food expiration, all of which create higher levels of methane. Methane is one of the most harmful greenhouse gases that contributes to climate change, and is 23 times more potent than CO2 as a greenhouse gas. Therefore, food wastage has a high economic and environmental impact. When you regard the amount and impact of food wastage in relation to the number whom go hungry, 870 million people each day (FAO, 2012; World Hunger; 2013) it is evident that food wastage is a problem that needs to be solved.
Supplier power:
High
Low
Threat of substitutes:
Low
technological management system, therefore making it difficult to find a product that would perform a similar task of inventory system. Rivalry among competitors: existing High Rivalry among existing competitors are high because the existing competitors are credible and established such as Samsung and LG.
Overall attractiveness of the industry: Overall an attractive industry as there are not many suppliers of such technology, this idea expands and improves similar fridges in the smart fridge industry. Although entering the market would be difficult due to high cost, as well as high rivalry due to a number of reputable companies, once established this product could be highly successful.
as all in the developed world have a fridge, as do very few in developing nations. This product is not specifically target to a small and/or niche group. Therefore, the companys strategy is Differentiation.
Decision
Buy Goods
(Re)input Goods
DONE
Business Process 2: Data Sharing Process Consumer is able to understand what they have in their fridge without being in the household. Through application across both android and apple platforms, the consumer can link their fridge inventory to the application, which allows for more efficient shopping as they will know what they have and how much they need, etc. This process starts by linking the application and inventory via cloud management system. When the consumer goes shopping, they can check the application to see what is in their fridge, e.g. milk and the quantity, e.g. 100ml, this will allow for them to understand if they need more milk, e.g. 100ml for 4 people is insufficient, must purchase more. It allows for better planning aiding an overall more satisfied experience. 4
START
Inventory System
Buy Goods
3.9 Functionalities
3.9.1. Resource Management Process 1. 2. Display items available (and therefore what is required) The amount (in weight) of each good and expected expiration date
3.9.2. Data Sharing Process 1. 2. Allows for information about goods to be shared amongst households Allows for better decision making
3.10 Systems
System 1: Inventory System Allows for data entry of goods in the fridge via scanning and RFID tags, for pacakaged goods such as milk, or manual entry for goods such as produce. Once entered into system, they are placed in individual holding containers where the inventory system will measure the good (weight) via a weight management system (see system 2), as well as predict an appropriate expiration date based on type of good. Allows for consumer to know what goods they have and what they need. System 2: Weight Management System The weight management system aids in the inventory system by allowing for a specific weight for a specific type of good to be known by being measured once placed in individual holding container, after entered into system. Allows for the consumer to know if more of a certain good is required or not. System 2: Cloud Management System Allows for information of goods to be available to all household members through the use of a cloud managmetn system. Knowledge of goods can be shared beyond the household itself, allowing for better understanding and planning when grocery shopping (ability to see what is available, how much is available and expiration date). 3.11. SUMMARY TABLE: VALUE CHAIN TO SYSTEMS
2.
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1.
Allows for amount (in weight) of each good and expected expiration date to be known Allows for information about goods to be shared amongst households Allows for better decision making
Imventory System
2.
4.0 Conclusion
In conclusion, the smart fridge is a technological solution to the issue of food wastage. Its overall attractiveness as an industry is high, as once established it would become a good everyday way for families to reduce costs and be resourceful. Through the use of information systems and technology, the smart fridge is able to do an automatic inventory allowing for convenience and an overall better experience for the consumer.
Reference List
1. Food and Agriculture Organisation of the United Nations (FAO) (2011) Global Food Losses and Food Waste. Retrieved from http://www.fao.org/docrep/014/mb060e/mb060e00.pdf Porter, M. E. (1980). Industry Structure and Competitive Strategy: Keys to Profitability. Financial Analysts Journal, 36(4), 30-41. Smithers, R. (2013). Food waste report shows UK families throw away 24 meals a month. The Guardian. Retrieved from http://www.theguardian.com/environment/2013/nov/07/uk-householdsfood-waste United Nations (UN) (2013) UN report: one-third of worlds food wasted annually, at great economic, environmental cost. Retrieved from http://www.un.org/apps/news/story.asp/h%3Cspan%20class=%27pullme%27%3EIn%20short,%20wh en%20you%20empower%20a%20woman,%20you%20change%20the%20world%3C/span%3Ettp:/ww w.unfpa.org/www.fao.org/html/html/story.asp?NewsID=45816&Cr=food+security&Cr1=#.UtnkDRCBr IU 6
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United Nations Environment Programme (UENP) (n.d.). Food Waste Facts. Retrieved from http://www.unep.org/wed/quickfacts/ United Nations Environment Programme (UENP) (2009) The environmental crisis: The environments role in averting future food crisis. Retrieved from http://www.unep-wcmc.org/environmental-foodcrisis_62.html Winter Green Research. (2010) Cloud Computing Virtualization Market Strategies, Shares, and Forecasts, Worldwide, 2010-2016. United States: Winter Green Research World Hunger Education Service (2013) 2013 World Hunger and Poverty Facts and Statistics. Retrieved from http://www.worldhunger.org/articles/Learn/world%20hunger%20facts%202002.htm
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