Transformation of fruit factory

Transformation of fruit factory

2017
Innovation design
Personal project

This is the project that considers multiple stakeholders to build a new sharing economy fruit industry chain centred on user experience. It also eliminates the unreasonable income of the original industrial chain, reduces the passive situation of the production relationship of the processing plant, so the resources can reasonably and efficiently be mobilized and used.

Clients:

Fruits storage and process factory

Goal:

Re-build the service and value proposition by sharing economy and cooperation network, the funds, market information, resources and workforce held by fruit factory will be utilized more effectively to respond to future business trends.

Category:

Fruit and vegetable industrial innovation

Length:

4 weeks

Challenge:

The development of fruits and vegetable industry has a strong connection with people’s daily life as the price we spend on food contributes to a specific part of daily consumption. However, with the thriving grown of the fruits and vegetable industry, the factory who takes the responsibility of storage and in-process are undertaking the economic crises.

How does it happen and what can we do to help the fruit factory avoiding the bankrupt?

Approach:

I conducted the desk research to understand the general condition of the contemporary fruit industry by gathering information about fruit selling marketing as well as customer and fruit factory owner feedback. It also help me to consider the position of factory held in the wholistic industrial chain.

Desk research work.

To investigate the passive relation of production the fruit firm itself, the qualitative research, including observation and interviews, is applied into a fruit storage and process factory to explore how the process happened in the factory.

Industry system map setting.
The industry system map is build to have the view of how fruit chain works as well as to consider the positions and needs held by different stakeholders.
Analysis of factory operation process.

Insight:

From the investigation of fruit factory:

  1. The information source of the factory is limited, only the upstream fruit company can obtain effective information about the market. 
  2. The factory is simple in structure: storage and processing, which lacks the market information response and processing capacity. 
  3. The factory has limited funds to develop in other directions. 
Insight after interpret and analyze the information from qualitative research.

From the industrial chain:

  1. The excessive length of the industrial chain leads to the extremely high consumption unit price of products, which affects the stable development of the market.
  2. The profit distribution of the factory and the fruit supplier is seriously unreasonable.
  3. The lack of consideration of user demand in the industrial chain leads to the unreasonable use of market information.

Solution:

The business model based on sharing economy:

New sharing business model setting.

Model operation: Preferential shares and other promotional measures have attracted funds from many groups and sectors in society, including individual suppliers, fruit shops, consumer groups, e-commerce companies, factory workers, etc.

Market information collection & use: Establish strategic cooperation with e-commerce companies, collect and analyze relevant big data with the advantage of their technology, and develop new products centring on user demand and experience. Products will be given priority to e-commerce throughout the year, and the joint e-business launched sales concessions.

Effectiveness: Cooperation with transportation companies to take advantage of their warehouses in various cities, fruit products can deliver to designated destinations within 24 hours. It ensures the freshness and time efficiency of the products and also expands the brand reputation of the transportation company.

Online operation: Look for potential fruit supermarkets or stores in each city to sign strategic cooperation agreements. Set up offline new product experience spots in fruit supermarket or store. Some products are presented to consumers in the form of free experience to promote products and expand brand influence and achieve a win-win situation.

New products: Cooperate with the Food institution. The factory provides financial support to institutions. Research institutes provide knowledge and technical assistance and work with plant product development to the factory. The cooperation of public institutions provides a driving force for the development of future products, and the injection of funds from factories enables institutions to better engage in food research.

Definition: The factory is no longer dominated by upstream orders but transformed into autonomous operation mode through cooperation with external relations. Redefine the business model and design the factory internals. Make factories in line with the market – and user-centric business trends. The Internet of things should establish to ensure the sharing of all products and services.

Blueprint of fruit factory transformation.