Acuscan Executive Summary

EXECUTIVE SUMMARY

TO: Cliff O’Connor, CEO AcuScan, Inc.

FROM: TOM GRECO

SUBJECT: ACUSCAN OPTIMIZATION PROJECT

DATE: 5/5/2008

CC: GEN 480 STUDENTS

Purpose and Scope of Document

The purpose of this executive summary is to provide an overview of the status of the AcuScan Optimization Project, known as “Operation Optimize.” The objectives of the project are to increase revenues and grow market share by transitioning AcuScan into retail markets. Entry into this target market area is to be accomplished through the development and introduction of a new retinal scanning product suitable for retail environments. Based on existing AcuScan iScanner optical scanner technologies currently used in security applications, the new product will offer the same quality features with minor modifications to support the unique requirements of the new application environment. The company’s entry into this new market requires an integrated effort across several operating divisions including Marketing, Product Development, Engineering, and Organizational Development.

Summary of the Situation

The momentum on this project has stalled primarily due to conflicts between impacted departments within the organization and significant reductions in available resources. Integration and cooperation must be established and maintained across all work groups in order for the company to be successful in this endeavor. To ensure market impact of the magnitude necessary to improve the company’s profitability and effectively position it for future growth, it is imperative that AcuScan bring this new product to market by the end of the year, with a minimal investment outlay.

The “Operation Optimize” progress report on February 17, 2005, provided an optimistic view of the project with Product Development and Marketing collaborating on a product concept that followed past new product trends. The following events occurred:

1. Developed marketing objectives

2. Contracted with Wilson Marketing for concept tests and focus groups

3. Concluded that a strong potential exists to use iScanner technology and equipment in a retail setting.

4. Concluded that no competitor has the technology to date to create an application similar to the proposed iScanner retail application.

5. Identified Secur-A Corp. as the competitor with the capability to develop a retail scanning application product within a short time frame.

6. Projected total cost to market budget requirements at $575,000.

7. Defined the lead time to deployment of the first installations at six to eight months in order to gain “first to market” advantage.

8. Recognized that the project appeared to be stalled due to Project Development concerns related to timely completion of the deliverables.

9. Concluded that the product development budget needed to be increased by $250,000, to hire additional programming staff. Requested budget increase approval.

Emails between the department managers in the days following the release of this progress report indicate that important issues need to be resolved before management problems further erode the development effort and sabotage the success of this project.

Key Points Relating to the Situation

• Budget constraints due to reductions in sales and service revenues have restricted the available project funding

• Poor communications between departments – distrust has developed and information sharing is virtually nonexistent

• Teamwork is not being utilized – each department is functioning independently of the others

• Decision-making has been based largely on assumptions and verbal conversations rather than formal information gathering and analysis processes

• Paralysis has occurred due to increased stress and lack of clear direction

• Deliverables defined by management (February 4) do not match the deliverables identified by the engineering staff.

• Personal issues and agendas appear to be influencing the behaviors among individuals involved