Economic Impact. Provide a detailed description of your system elements defined as start-up costs. Define a list of items contributing to operating and maintenance expenses. Describe all forms of potential revenue, including direct user fees and possible subsidies required for socially focused solutions.
In order to build and create the hybridized battery the team will need to have several various forms of capital and labor in order to start up the idea. The initial start-up costs would include:
- Material, machinery, and tools needed to physically mass produce the batteries for the users
- Labor and employees such as engineers for further research and development, factory workers to supervise and construct the batteries themselves, and management to ensure the profit is maximized along with the best interests of the company being pursued as well
- Land and space to construct a factory for the construction of the batteries, as well as an area for research and development to further improve upon the design, and make any repairs and revisions to the current model if any issues arise
While covering these start-up costs would allow the team to create the initial influx of the batteries, there are still operating and maintenance expenses that would come along with the production and construction of the system. The operating expenses to keep the company running continuously include:
- Redesigning the model of the battery in the event of a recall
- Updating the base prototype of the battery to adjust for new types and models of automobiles and cars
- Continuation of research and development for improvements based on new technological advancements that would apply to charging the batteries more efficiently and reducing the overall energy use
In order to provide the company with revenue and a potential profit to keep the business model sustainable, the generation of revenue is imperative. The potential sources of revenue for the given model would include:
- Direct user fees from customers who are directly related to our target audience. Customers would purchase the battery to reduce their carbon footprint, increase their gas mileage per gallon, and save money due to the reduced energy consumption
- Government subsidies given for the improved air quality and reduction of particulates from carbon emissions. If the battery is applied universally to most if not all automobiles, this would lead to an even greater positive impact on the environment leading to a larger subsidy
- Patents being bought from individual car companies and manufacturers. While this would curb the social impact of the product itself due to the battery only being applied to one type of car, a patent is a possibility that would result in a vast amount of revenue
Social Impact. Provide a detailed description of potential social impacts realized as a result of implementing your vehicle system with consideration of the special needs of various populations.
While the battery would generate revenue on the market, it would also create a positive impact upon society that would improve the lives of our users, but also the rest of the citizens in the community. The social impact that the team’s product will contribute to would include:
- With the hybridized battery develop and popularize more markets, the overall reduction of car emissions will contribute to slowing the continued deterioration of the global environment.
- The air quality will improve due to the reduction of car emissions, and it will create a better living environment for the surrounding communities. The situation of citizens with respiratory problems will significantly improved as the incidence rate decrease.
- Decrease the human influence on the ecosystems, and the process of wildlife distinction will be step down.
- Improve gas mileage
- The battery is designed to switch from gas to electric power in situations where energy might be wasted. For example when a gas powered vehicle is at a stop, unnecessary power is being used to keep the car on, but with an electric engine, that power can be saved.