MIDTERM DELIVERABLES : VALUE PROPOSITION BUSINESS HYPOTHESES

By. An Naafi Yuliati Lathifah (5974658) and Sekar Kumala Desi (5966485)

SUMMARY

ResiX's mission to transform household food waste into energy, enhancing sustainability and reducing
greenhouse gas emissions through a user-friendly anaerobic digester.The compact and user-friendly
anaerobic digester addresses the issues with current waste management systems, such as landfill
problems. This device offers a straightforward and sustainable solution, particularly appealing to
younger, eco-conscious people. Customer feedback shows a relatively good response for the new idea
of simplifies waste management, lessens environmental harm, and saves money. ResiX's product will
not only solves common waste issues but also supports a greener future by converting organic waste
into useful biogas

I. Value Proposition Hypotheses

I.I. Hypotheses

Current waste management solutions are inadequate, leading to severe environmental

consequences such as landfill explosions and excessive greenhouse gas emissions. Additionally,
households, especially in urban settings, face significant challenges in managing food waste
efficiently and sustainably. Comparatively, more people specifically the young generation one is
more aware of sustainibility concept and environment issue (Azizah, 2021). One of the huge
cathrastopic evidence of inefficient food waste management was seen from the 2005 tragedy where
a landfill explosion buried two villages due to poor waste management practices highlights the
urgency and severity of the problem (Lavigne, 2005). A new solution is brought up to involve
Customers will value a reduction in their waste management efforts, decrease in environmental
impact, and financial savings from reduced waste handling services.

II. Customer Insight

II.I Prospective Customer I
• Date : 29th March, 2024
• Interviewee Identity : Business owner who is concerned with sustainability, resides in the
big city area.
• Interviewee Job : A Business owner
• Key Questions :
A. What is the typical composition of the organic waste from your restaurant and cultural
house?
- food waste from the cooking ingredients residual
- food waste from the leftover dishes (bones, vegetables, fruits, etc)
- organic waste from the garden
B. How many kg of food waste is produced per day?
- 2-3 kg
C. How do you usually manage/proceed with your food waste production?
- Paid monthly for the waste management service provided by the cluster.
D. Which part of that process that you feel inconvenience about?
- When it’s run out of services or there is a delay, the bad smell spreads
- The amount of money paid per month is a too expensive compare to the quality
of the services
E. Do you know about the current food waste problem in the environment?
 - The poor waste management in Bantargebang, a huge waste facility near the
residents
F. Do you want to contribute to solving the problem?
- Yes, starts from a small action at home
G. What kind of solution do you have in mind to help you solve the problems?
- I want something simple, as easy as a plug and play device
- If that things can produce something valuables from waste, I would really like it
H. Are you willing to pay for Eur 500 for the plug and play device that can help you manage
your organic waste?
- Sure, I am willing to pay fort hat kind of device fort hat price, especially if the device
can also produce another valuable product
• Insight and Impact on Business Idea:
Business owners, like those running restaurants or other public venues, are typically
aware about the important of waste minimizations. They try hard to produce less food
waste. Our hypothesis that city residents would need a simple solutions, compact, and
efective solutions are valid. Moreover, the prices we've come up with for these solutions
are realistic for the market.
• Outcome:
Business owners who have a concern on environmental issues is an example of highly
potential users.

II.II. I Prospective Customer II

• Date : 11th April, 2024
• Interviewee Identity : A young recent graduate who is actively involved in her community
waste management
• Interviewee Job: An expert staff of Waste for Change, a waste management company in
Indonesia, previously did a waste management project in her community
• Key Questions :
A. What is typical the composition of the waste from the household based on your
project?
B. How many kg of food waste per day is produced according to previous your project ?
C. What is the composition of the waste your house produces every day?
D. How do the community usually manage/proceed with your food waste production?
E. Which part of that process that you feel inconvenience about ? what is the bottleneck
and the improvement to be carried out ?

F. Have you ever heard about anaerobic digesters, composters, or other food waste
processing technology?
G. Do you think the community is willing the to spend to invest in this kind of
management?
• Insight and Impact on Business Idea :

She conducted a waste sampling project in Taman Laguna, Cibubur, Bekasi, Indonesia,
targeting upper-middle-class households within her community unit (RW). The initiative,
supported by the dedicated commitment of her community leader, involved sampling
waste over eight consecutive days during a festive month. Although the RW comprises
approximately 600 to 700 houses, the study focused on 60 homes, finding an average food
waste output of 1.5-2 kg per day per family. The waste composition was primarily organic
at 54%, including food and fibrous or wood-based materials, with the remaining waste
 consisting of toiletries (10%), cardboard (10%), glass (4%), rubber or leather (3%), metals
(3%), and textiles (2%).

The community has adopted a unique waste management program, "Plastic Pay," which
encourages residents to deposit plastic waste in a special collection box, redeemable for
benefits through an app. However, organic waste continues to be handled without specific
segregation, contributing to inefficiencies in waste management. Despite awareness of
technologies like anaerobic digesters and composters, she lacks detailed knowledge about
their operations.

Looking ahead, she sees a significant opportunity within the community for a cost-effective
solution priced under 15 million IDR that could convert organic waste into cooking gas. Such
a device, if accompanied by easy operation and supported by robust customer service or
counselling, could attract substantial interest among community members. Currently,
national waste management practices primarily involve the separation of waste into
organic and non-organic categories without further processing, particularly for organic
materials. She recognizes a critical gap in the utilization of organic waste, which, if
addressed, could enhance its value significantly.

• Outcome : According to her lenses, as long as the community and the leader have a good
awareness and commitment, such of new and affordable sustainable equipment can be
introduced. Her view validated our hypothesis that there is a certainly market for the
compact, convenience, and plug and play system of anaerobic digester. However, it might
be challenging to convince them unless it is proven for a certain time or period. She
recommends contacting her supervisor for a better insight related to the waste
management in Indonesia.

II.III. I Prospective Customer III

• Date : 12th April, 2024
• Interviewee Description : An environmental enthusiast housewife living in a big city
• Key Questions :
A. What is the typical composition of the organic waste from your house?
- food waste from the cooking ingredients residual
B. How many kg of food waste is produced per day?
- 0.5-1 kg
C. How do you usually manage/proceed with your food waste production?
- Keep the food waste production only on the ingredients part, and maintain to have
a zero leftover
- I made compost out of our food waste using composter bag
D. Which part of that process that you feel inconvenience about?
- The worm that coming out from the soil
- The long idle time until the food waste change into compost
E. Do you know about the current food waste problem in the environment?
- The poor waste management in Bantargebang, a huge waste facility near the
residents
F. Do you want to contribute to solving the problem?
- Yes, starts from a small action at home and thus I start with a simple composting
activities
 - I also commit to work on that solution even though I need to put some efforts
G. What kind of solution do you have in mind to help you solve the problems?
- I am committing on minimizing the waste production, processing the food waste
production, and managing the waste properly
- I want something simple, as easy as a plug and play device
H. Are you willing to pay for Eur 500 for the plug and play device that can help you manage
your organic waste?
- I am thinking about that price range since I already feel comfortable with the
composting activities that I have done nowadays
• Insight and Impact on Business Idea:
A household that has a high awareness of sustainability issues typically would have a
mindfulness on their consumption, both for their primary, secondary, and tertiary
consumptions. Therefore, they will produce less waste. However, waste is still there,
thrown out to the field. Moreover, they mainly proceed their food waste in any possible
way they can do.
• Outcome :
Our hypotheses that our product can be a solution for a household who has
environmental awareness living in the city area is invalid. For household with that persona
already has their own preference and method in waste management practice and usually
prefer the cheapest one.

III. Solution Description

ResiX's compact anaerobic digester processes food waste into biogas with a plug-in control system,
requiring minimal space and maintenance. The device operates odorlessly and safely, with pressure
control features. Directly addresses the need for simple, effective, and sustainable home waste
management. The device offers economic benefits by converting waste into energy, thus providing
both immediate and long-term value to the user.
IV. Strategic Rationale and Objective
• Why now : Increasing environmental awareness and technological advancements make this the
ideal time to introduce a small-scale solution to waste management since no definite
• Resources availability : The ResiX team comprises various Msc backrgound in sustainable
energy technology, management of technology, and construction management, each holding
relevant advanced degrees and possessing a deep understanding of the market and
technology.
• Need for a new company : existing solutions are not adequately a compact, user-friendly or
integrated into daily routinesly, creating a niche for ResiX's innovative approach.

V. Future Plan or New Introduction

Finally, our strategic plan to conduct additional interviews will help us get a better grasp of market
dynamics and customer preferences. This approach is consistent with our commitment to
improving our product design and operational efficiencies. By gaining more thorough information,
we will be better able to customise our services to our target audience's unique demands while
also optimising our production and financial predictions. This work will not only increase our value
offer, but will also put us in a better position in the competitive environment, resulting in long-term
success and sustainability.

VI. Reference
Azizah, Nora. (2021). Riset : Konsumen Indonesia Kian Sadar Lingkungan.
https://www.pwc.com/id/en/media-centre/pwc-in-news/2021/indonesian/riset-konsumen-
indonesia-kian-sadar-lingkungan.html
Lavigne, F., Wassmer, P., Gomez, C. et al. (2005), catastrophic waste avalanche at Leuwigajah
dumpsite, Bandung, Indonesia. GEOENVIRON DISASTERS 1, 10 (2014).
https://doi.org/10.1186/s40677-014-0010-5