TO: Stark Industries President, CEO DATE: October 11th,

2017

FROM: Stark Industries Product Development Team

SUBJECT: Stark Industries Progress Report

Introduction - Trevor
The Stark Industries product development team is currently working very hard on a
research project for a new augmented reality product. This product aims to enhance users'
everyday life by providing services similar to that of a digital personal assistant using state of the
art software development along with innovative and unprecedented hardware design with
functionality and accessibility being our main focus.
We are developing this product as an opportunity to influence and cultivate the entire
technology industry by introducing new markets with our successful platform. Another benefit to
Stark Industries with the development of this product would be to allow the corporation to tap
into a very new and quickly developing market that is set to grow exponentially over the next
few years. This allows us to be a market leader while offering minimal risk.
We created a proposal a few months ago detailing what we wish to accomplish along
with details of how we plan to do so, why we are developing this product and how much it will
cost. We decided each part of the process into different phases with three main focuses, Design,
Development and Delivery. Each with its own budget, schedule and goals. Our main goal for
phase one was to create an organized, detailed and functional design for prototyping and
development. The main goal of phase two was to develop prototypes and redesigns of our
product, with a focus on improving functionality, appearance and cost efficiency. Finally our
goals for the third phase was to create a new and relevant delivery method for our product
including brand content, marketing materials, choosing distribution, sales channels, advertisers
and brand ambassadors. These three phases of our research project in summary is a guide to a
successful product development and launch.

Summary - Eric
Our team has made exceptional progress with the project at hand. We made it a point to
put together a team of our best employees and scientists to accomplish our goals. The HUD has
been put together and tested multiple times to ensure that we have produced the best product
possible. After designing and constructing the product we then moved on to selecting our
partners for distribution and advertisement. The brand is something that is very important to us
because we understand how much our customers and supporters take pride in representing Stark
Industries. We want everyone using our products to feel that they have invested in the future.
Overall our progress is up to date with what we intended and we look forward to having the
Stark HUD on the market.

Phase 1 - Product Design - Jada

Work Completed
We have designed 3 prototypes for the Stark HUD 2020.
Each prototype will be tested by a select few of our employees.
The designing of each prototype should take approximately 1 month to complete.
Our first design was bulky and not as stylish as one would like.
The remaining two prototypes focused on a more stylish look for the consumer
Work Remaining
There isnt much work remaining in the product design phase.
We plan on making more stylish designs
After the product has been designed we must start developing it
Cost
Each prototype costs us around 2.5 to 3 million to design

Phase 2 - Product Development - Austin

Work Completed
We successfully developed the first supply of HUDs
We made around 40.3 billion HUDs.
Work Remaining
We still have another batch of HUDs to make to be sent to inventory
Our prototype for the stylish design is almost done but no where near ready to be
shipped and sold.
Cost
The cost of developing the HUD was around 60 million
The cost of designing the new prototype is around 1.4 million considering its
new.

Phase 3 - Product Inventory & Delivery-Austin

Work Completed
We have successfully made 40.3 billion and have been sent to inventory until
sold.
We shipped 63% of our inventory to large businesses around the world.
The HUDs sold out in the first week of release.
Our next shipment will be sent after being supplied with more HUDs.
Work Remaining
We have to have more HUDs sent to our inventory.
We also still need to send the next shipment of HUDs to our distributors.
 Cost
The cost of the delivery was around 10.3 million
The cost of inventory is around 1.2 million

Evaluation - Eric
With phase three complete and our products delivered, we now are evaluating the
numbers. Overall our sales have been just as we expected. Many stores have been selling out
quickly and we are prepared for our next shipping date as we are still manufacturing the Stark
HUDs. Our initial costs to manufacture the products were near 80 million. In less than a week
after the release date we have made over 70% of the costs back. With more companies interested
in partnering, we plan to see profit within the next business week. Our team has been hard at
work putting together ideas for improvements and updates to the HUDs. These will keep our
products above the competition and our customers interested. These updates will be set up to be
released strategically as sales begin to drop. As far as product performance is concerned, we
have received stellar reviews from our distributors. At this point in time, malfunctions/returns of
our sold products is less than 3%.

Conclusion & Recommendations - Jada

Overall we have made really good progress since the proposal of this project. We have
been able to come up with a project design for our prototypes in a span of 3 months. After we
completed and tested our prototypes we were able to get our product in the factory to get
officially made. Now we currently have Stark HUD on the market and we are making great
progress selling the HUD.