Strategic Plan Part I: Conceptualizing Smart Irrigation Inc.
Laura Ortega
BUS/475: Integrated Business Topics
April 8, 2013
Ram Iyer

Contents

1.1 Conceptualization of Smart Irrigation 3 1.2 Mission 3 1.2.1 Company Description 3 1.2.2 Customers 4 1.2.3 Geographic Locations 5 1.2.4 Legal Status and Ownership 5 1.2.5 Mission Statement 6 1.3 Vision 6 1.3.1 Vision Statement 6 1.4 Guiding Principles 7 1.5 Importance of a Strategic Plan 9 Conclusion 9 References 10

1.1 Conceptualization of Smart Irrigation
Smart Irrigation Inc. was created as a manufacturing business that makes and sells, either direct or through distribution, a weather-based irrigation controller targeted for homeowners. The company was founded in 2012 by Laura Ortega and is based in Sonoma County, CA. The business was started is after witnessing first-hand how people waste water by not watering their landscapes correctly. People water too long, and water runs off, carrying chemicals into streams and rivers, damaging the environment. There are a variety of irrigation controllers out on the market, but only a handful of them are weather-based. Competitive products are expensive and too complicated to use for the average homeowner. Smart Irrigation’s product is programmable via a website, which interfaces to the irrigation controller wirelessly. Smart Irrigation purchases daily evapotranspiration (ET) data from several sources throughout the United States, and transmits a value daily to the controller that adjusts irrigation based on how much water evaporated due to solar radiation, temperature, wind, and humidity for the local area surrounding the irrigation controller. Individual zones on a landscape are watered only when water is depleted at 50% of the root zone of the plant. Smart Irrigation saves water, landscapes, and the environment.
1.2 Mission
1.2.1 Company Description
Smart Irrigation is incorporated. Smart Irrigation engages in the design, engineering, manufacture, and sale of a weather-based irrigation controller. Smart Irrigation currently has one 20,000 square foot manufacturing facility, located in Santa Rosa, CA. We currently have 50 employees, consisting of engineering, manufacturing, marketing, customer service, and sales. Most of our sales come from our website, www.smartirrigation.com, and via irrigation and landscape supply distributors. The company currently manufactures and distributes one product, SmartIRR. A secondary source of income is from subscriptions. Customers pay $54.99 annually as a subscription to receive the daily weather signal that schedules their irrigation. There are research and development projects on-going to develop additional innovative devices and services.
1.2.2 Customers
Smart Irrigation is currently targeting homeowners in Sonoma County, California. In 2011, it was estimated that there are 204,572 homes in the area (The Press Democrat, 2011), and we conservatively estimate 30% have and irrigation timer of some sort. These are our target customers.
Smart Irrigation is passionate about customer service and eager to address every customer’s need. What makes Smart Irrigation great is our dedication to the customer, helping them balance water savings and a beautiful landscape. This is how Smart irrigation will become the exception in business and push beyond the competition. On the phone, customer representatives are instructed to always end the call with appreciation for their support and business. On the web site, Smart Irrigation will send an e-mail thanking the customer for their business and their subscription renewal. We will focus on every customer and ask for feedback to build our customer satisfaction index. Customers will receive subscription rebates for participating in surveys. Smart Irrigation is committed to responding to each phone call, e-mail and complaint professionally and in a timely manner. Customer Service personnel are experts in landscapes and irrigation, and they are trained to guide customers on how to set up the parameters necessary for maximizing water savings and ensuring plant health. Smart Irrigation is constantly looking for ways to improve what is already in place and implement new features that ensure customers are delighted. This is how Smart Irrigation will achieve a competitive advantage.
1.2.3 Geographic Locations
Smart Irrigation has one manufacturing facility in Santa Rosa, CA. Our current focus is targeted in Sonoma County, which has ample opportunity for our first two years of growth. As we expand our market, we will add local business development personnel in satellite offices.
1.2.4 Legal Status and Ownership
Smart Irrigation is a corporation with a single owner. The decision to incorporate was based on tax benefits and separation between owner and corporation. Laura Ortega has over 25 years of experience in supply chain management, in different organizations ranging from the biotech industry to defense contracting. On staff, are industry experts in horticulture, irrigation, and wireless networks.

1.2.5 Mission Statement
Smart Irrigation’s mission is to provide affordable weather-based irrigation solutions to ensure water savings, landscape health, and environmental protection. We will do this as well as promoting a culture of ethical behavior and continuous improvement. The organization is always striving to do the right thing. There is a published standard of business ethics and conduct policy. Smart Irrigation wants to become the standard weather-based irrigation controller for every home existing and yet to be built.
1.3 Vision
Our vision is to grow our company and our product and subscription sales by working with local water agencies and municipalities. We want to expand to other counties in California, and eventually nationwide. We will develop strong and beneficial relationships with our suppliers and partners and will meet all obligations. We will be good corporate citizens and help out the community in which we manufacture.
1.3.1 Vision Statement
Smart Irrigation will become the premier manufacturer of the most affordable and easy to use weather-based irrigation controller. Within the next five years, Smart Irrigation will expand across the United States by developing partnerships with the local water agencies and municipalities that are interested offering rebates for homeowners who purchase a SmartIRR and subscribe to the daily signal. Through our innovation, we will ensure water savings, landscape health, and environmental protection. As we grow globally, we will remember to always focus on customer satisfaction.
1.4 Guiding Principles

The organizational culture of Smart Irrigation is based on simple respect. This is how we as employees are supposed to treat our customers, our fellow employees, and the outside world in terms of social responsibility. It is how the organization is set up to foster a culture of the development of new ideas, how information flows through the organization, and how the employees are measured through a system of recognition and reward. At Smart Irrigation, communication needs to go beyond the training of managers to be good speakers and have good interpersonal skills. All levels of management have skills that develop and motivate today’s intelligent workers. At Smart Irrigation, the main goal is to deliver the highest quality products and services, as well as to promote a culture of ethical behavior and continuous improvement. Smart Irrigation is always striving to do the right thing. The company has a published standard of business ethics and conduct policy. This policy states that we, as employees, will conduct our business according to the law, our values, and our principles. It is how the company expects us to treat our customers, our suppliers, the environment, and each other. This is how the right organizational culture is created and maintained. Smart Irrigation also participates in employee personal growth and development programs. Just being an employee has many perks to help influence employee behavior, as well as a fair recognition, reward, and punishment system. Every year during the review process, employees are required to fill out a document titled “Individual Development Evaluation”. This basically states what positions that employee has held throughout the years and what position they wish to attain in the near future. Working with managers, employees will document the steps necessary to get to the next level, whether it is in trainings, seminars, or getting an advanced degree. The organization will reward high performers in terms of raises and bonuses but is equally quick to recognize poor performers by placing them on improvement plans or allowing them to move on to pursue other career opportunities. Smart Irrigation attempts to influence employee behavior through the health, wellness, and safety programs. Employees are an organization’s most important asset. Employees are the ones that help achieve the goals of being the market leaders. Our wellness program focuses on promoting healthier lifestyles through education, prevention, and physical fitness. We sponsor brown bag seminars once a month where we bring in a nutrition expert who educates the group on what foods are best, how to cook healthier, and how to avoid stress. We also have a run-walk-bike group that works out together three times a week, and the company pays for the group’s entrance fees to races or bicycle functions around the county. Smart Irrigation also subsidizes membership to a local health club. There is a seventy percent participation in all of these activities. Diversity is a very important concept at Smart Irrigation. We foster an environment where employees can do their assigned tasks free from discrimination. In the county where Smart Irrigation has chosen to manufacture, hiring diverse individuals is difficult because of the demographics of the county. Of the approximately 483,000 people in the county, 76.8% are white, 24.9% are Hispanic, and only 1.6% are of African American descent. (U.S. Census Bureau 2011) We currently have one African American on staff. While the concept of diversity is part of our culture, Smart Irrigation struggles to find qualified candidates of diverse culture.

1.5 Importance of a Strategic Plan

The average homeowner has no idea how much water the lawn, the roses, or the shrubs need. Smart Irrigation takes the guess work out of watering landscapes. It is simple to set up on the internet, and it will only water plants based on the needs of the plants and the weather. Smart Irrigation is a win-win for the customer, the landscape, and the environment. Our corporate mission, vision, and values are our foundation for the development of our future as the leader in affordable, weather-based irrigation for homes. Our mission keeps us focused on our current market and customer base and ensures near term growth. Our vision guides our 5-year plan for rapid growth through partnerships and innovation.
Conclusion

Developing a strategic plan with a basis in a strong mission statement and aggressive vision is essential for a business to succeed. The Smart Irrigation team is committed to our mission and vision, and we will execute our plan with integrity and respect. We are confident that we can become the leader in affordable, weather-based irrigation in at least 30% of the homes in Sonoma County by effectively working with our partners. We will use this foundation to execute our vision to grow our business nationally by 2018.

References

1 in 11 Homes in Sonoma County Vacant, (2011), retrieved from http://www.pressdemocrat.com/article/20110309/BUSINESS/110209441
U.S. Census Bureau (2011) retrieved from http://quickfacts.census.gov/qfd/states/06/06097.html