Basic Business Model for VR/AR Simulation – Knowledge & Training Convergence

This article discusses the basic business model for VR/AR simulation and training convergence, focusing on the value proposition, customer segment, stakeholders, key activities and resources, customer relationships and channels, cost structure, and revenue streams.

MANAGEMENT 1
Basic business model for VR/AR Simulation – Knowledge & Training Convergence
By (Name)
Name of the Course
Title of the Instructor
Institutional Affiliation
City and Date
The final date of Submission

MANAGEMENT 2
BASIC BUSINESS MODEL FOR VR/AR SIMULATION – KNOWLEDGE & TRAINING
CONVERGENCE
Introduction
The game changing technology aims towards bringing various types of positive outcomes
that will be able to benefit various customers. Moreover, VR/AR simulation and training
convergence aims towards meeting the expectations of various personalities through the use of
different aspects of computer assisted instructions. This business model therefore works towards
the direction of ensuring that the VR/AR simulation knowledge and training convergence is
capable of appropriately addressing different issues that are associated with technology in order
to meet certain outcomes in this modern society (Bendtsen et al. 2016). Coming up with
appropriate and reliable business is one of the best techniques in this current century since is
greatly help to build the entire economy and also developing the capability of meeting the needs
of all the customers irrespective of where they are situated. In this modern world, technology has
taken a better part and most of the inventions are geared towards meeting various issues. A good
percentage of quite a number of innovations are known to be operating through the use of
modern technology for them to be able to fulfill various expectations that are known to be
emerging from different customer levels (Cvijanović, Dasgupta and Zachariadis 2016).
Coming up with an adequate and reliable implementation of management strategies
within any business is among the best techniques that will be able to offer proper guidance on
various modes of operations that should be strictly followed within an intention of reaching out
to various types of customers who are found within the market platform (Wymbs 2016).

MANAGEMENT 3
Value proposition and customer segment
The value proposition that will be attached to the VR/AR simulation is geared towards
making it more attractive thus capturing the attention of customers. As far as the value
preposition is concerned, the VR/AR simulation knowledge and training convergence will be
able to use different modern technological parameters that can be easily understood by different
individuals (Tüselmann, Sinkovics and Pishchulov 2016). At the same time, it will have one of
the best and reliable modern forms of security that will be implemented within it thus making it
quite difficult for any stranger to gain access to the entire system without the knowledge of either
an individual or even an organization that is trying to carry out some business by using the game
changing technology (Michalak and Rysavy 2016). Choosing the right customer segment is
always an important thing since this is one of the best ways that can fully determine the rate at
which a given product is going to sell within the market platform (Shibin et al. 2016). Customers
normally form an important part of any business and therefore they should always be given the
first priority by adequately addressing all their needs without any delays being encountered
(González-Cruz and Cruz-Ros 2016). VR/AR simulation knowledge and training convergence
therefore aims towards attracting the attention of a particular customer segment by ensuring that
all their needs are addressed. One of the major customer segments that are being targeted by the
game changing technology are the youths who are known to be falling between 15-23 years. This
is simply because a good percentage of them are more concerned with different updates
regarding the implementation of modern forms of technology (Kirkwood 2016). On the other
hand, another segment of customers are adults who will be taken through the VR/AR simulation
knowledge management for them to develop different techniques attached to computer assisted
instructions.

MANAGEMENT 4
Stakeholders
Stakeholders are capable of contributing towards a lot of positive outcomes within an
organization thus developing the capability of determining the rate at which a given business is
capable of moving to the next level. Moreover, they also positively contribute towards a
particular product or even service (Ho, Ahmad and Ramayah 2016). The business associated
with the game changing technology therefore aims towards incorporating diferent stakeholders in
its operations to allow all the objectives to be efficiently attained (Pandey et al. 2016). The
stakeholders will both exist at the internal and external levels. One of the major stakeholders who
tend to exist at the external level of the business are the customers. They will play one of the
most fundamental roles of acting as stakeholders who will be able to determine various situations
involving the game changing technology within the market platform (Ogunyomi and Bruning
2016). On the other hand, the top level business personalities known to be originating from a
wide variety of organizations will also appear as some of the major stakeholders who are capable
of influencing the decision making process that is likely to be implemented by the entire
business. Finally, another type of stakeholders will be the employees (Sanders and Premus
2015). These stakeholders will be found at the internal level of the organization thus developing
the capability of determining the quality of all the products that are being distributed to various
market platforms with an intention of reaching out to a wide variety of customers (Manuj and
Mentzer 2018).

MANAGEMENT 5
Key activities and resources
There are a wide range of key activities together with resources that will be implemented
in the entire business to ensure that it comes out as a success. At the same time, these key
activities a resources are known to be playing a reliable role when it comes to the achievement of
goals and objectives as far as the game changing technology is concerned. One of the major key
activities that will be involved in the business is marketing. It majorly constitutes of adding value
to the whole product thus capturing the attention of a wide range of customers known to be
located in various regions (O’Neill, Sohal and Teng 2016). Another key activity will be the
creation of awareness across different individuals thus making them to be aware of what istaking
place.
Coming up with appropriate and reliable resources is one of the most essential thing that
forms the pillar of nearly each and every business. Moreover, an adequate utilization of these
resources will determine the level at which a particular business is capable of moving after a
specific period thus providing it with the power to work hard towards its goals and objectives.
One of the major resources that will be required at this level will be the human resources. This
mainly include the engineers together with several other experts to will take part in the
manufacture of the entire game changing technology. Additionally, physical resources such as
the raw materials will also act as some of the major resources that will be required for the final
product to appropriately come out according to what is expected of it.
Customer relationships and channels
Customer relationships is always important in creating the bond between a customer and
the business. Positive customer relationships are likely to lead to the emergence of positive

MANAGEMENT 6
bonds between all the customers and the entire business as a result of the quality products and
services that are given to them with an intention of meeting all their needs. The business will
therefore ensure that various aspects of customer relationships are appropriately met through the
provision of quality products to all the customers irrespective of the areas where they are situated
thus avoiding any form of discrimination that is likely to emerge. Again, it is working hard to
ensure that different promotions are implemented across all the customers thus increasing their
relationships with the entire organization as a result of the quality services that are being offered
to them. Additionally, the customer relationships will be well addressed through the provision of
adequate and reliable customer care services who will be able to appropriately respond to various
customers by keeping them in touch throughout for them to know what is taking place.
There are various channels that will be used by the business to ensure that different
products and services are able to reach the customers without any delays being encountered. The
business therefore aims towards training different personalities on how the VR/AR simulation
knowledge and training convergence is capable of operating under different thus making it easier
to train different individuals located in various places. At the same time, there will be the use of
various social media platforms as some of the major channels that will always be used to
communicate various services like the promotions to a wide variety of customers within the
shortest time possible.
Costs structure
The entire business will be able to incur quite number of costs with the major one being the
product cost structure. At this point, different variable costs will be incurred which majorly
include different types of direct materials, commissions together with the production supplies.

MANAGEMENT 7
On the other hand, there is also the product line cost structure that will majorly focus on the
administrative overhead together with direct labor. Finally, there will be the customer cost
structure which will put much focus on the side of variable cost that is fully attached to the cost
of various products of services that will be sold to different types of customer.
Revenue streams
These are different types of sources from which the whole business will be earning money from
the sales of goods and services that will be provided to a specific group of targeted customers.
The following are some of the major revenue streams that the business intends to implement.
 Transaction based revenue- This will fully rely on various types of goods that will be sold
to various customers for them to make a one-time payment
 Service revenue- This is a form of revenue that will be generated through the provision of
different services to customers and then carrying out calculation based on the total time
taken.
 Project revenue- The business intends to earn this revenue through a one-time project
with quite a number of existing or new customers in different locations.

MANAGEMENT 8
Technical part
Local market National market International market
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Chart Title
As far as the above information is concerned, the VR/AR simulation is known to have the
capability of capturing various market platforms with a wide range of targeted goals and
objectives. This will ensure that it is capable of scaling up its operations after a certain period
thus bringing on board a positive progress that can allow it to offer a competitive advantage to
several other businesses who might be striving to offer the same products and services within the
market platform. At the end of the first year, the entire business aims towards capturing an
approximated percentage of 50% of customers who are found at the local market thereby
ensuring that all their needs and expectations are well addressed. On the other hand, the whole
business also aims towards covering around 70% of its targeted customers who are found at the
national market platform. By doing this, it will be able to increase its popularity across various
boundaries thus leading to an increased purchase of the game changing technology within this
market platform. Finally, at the international market, the whole business aims towards capturing

MANAGEMENT 9
a total of 85% of its targeted consumers. This will be carried by using different strategies that
will be developed by the relevant personalities to gain access to all the customers. By covering
this percentage at the international market, it clearly indicates that the business shall have gained
one of the best opportunities to move to new regions where there are minimal levels of
completion taking place thus being able to operate at that level in a more efficient manner.
Before the distribution of the product to the above market platforms, there needs to be a deep
analysis of what is entailed within the platforms.

MANAGEMENT 10
References
Bendtsen, L., Ashina, S., Moore, A. and Steiner, T. (2016). Muscles and their role in
episodic tension‐type headache: implications for treatment. European Journal of Pain,
20(2), pp.166-175.
Cvijanović, D., Dasgupta, A. and Zachariadis, K. (2016). Ties that bind: How business
connections affect mutual fund activism. The Journal of Finance, 71(6), pp.2933-2966.
González-Cruz, T. and Cruz-Ros, S. (2016). When does family involvement produce
superior performance in SME family business?. Journal of Business Research, 69(4),
pp.1452-1457.
Ho, T., Ahmad, N. and Ramayah, T. (2016). Competitive capabilities and business
performance among manufacturing SMEs: Evidence from an emerging economy,
Malaysia. Journal of Asia-Pacific Business, 17(1), pp.37-58.
Kirkwood, J. (2016). How women and men business owners perceive success.
International Journal of Entrepreneurial Behavior & Research, 22(5), pp.594-615.
Michalak, R. and Rysavy, M. (2016). Information literacy in 2015: International graduate
business students' perceptions of information literacy skills compared to test-assessed
skills. Journal of Business & Finance Librarianship, 21(2), pp.152-174.
Manuj, I. and Mentzer, J. (2018). Global supply chain risk management. Journal of business
logistics, 29(1), pp.133-155.

MANAGEMENT 11
O’Neill, P., Sohal, A. and Teng, C. (2016). Quality management approaches and their
impact on firms׳ financial performance–An Australian study. International Journal of
Production Economics, 171, pp.381-393.
Ogunyomi, P. and Bruning, N. (2016). Human resource management and organizational
performance of small and medium enterprises (SMEs) in Nigeria. The International
Journal of Human Resource Management, 27(6), pp.612-634.
Pandey, A., Ahuja, S., Madan, M. and Asthana, A. (2016). Bio-Medical Waste
Managment in a Tertiary Care Hospital: An Overview. Journal of clinical and diagnostic
research: JCDR, 10(11), p.DC01.
Sanders, N. and Premus, R. (2015). Modeling the relationship between firm IT capability,
collaboration, and performance. Journal of business logistics, 26(1), pp.1-23.
Shibin, K., Gunasekaran, A., Papadopoulos, T., Dubey, R., Singh, M. and Wamba, S.
(2016). Enablers and barriers of flexible green supply chain management: a total
interpretive structural modeling approach. Global Journal of Flexible Systems
Management, 17(2), pp.171-188.
Tüselmann, H., Sinkovics, R. and Pishchulov, G. (2016). Revisiting the standing of
international business journals in the competitive landscape. Journal of World Business,
51(4), pp.487-498.

MANAGEMENT 12
Wymbs, C. (2016). Managing the innovation process: Infusing data analytics into the
undergraduate business curriculum (lessons learned and next steps). Journal of
Information Systems Education, 27(1), p.61.