Problem Identification and Evaluation
Production and Operations Management
Abid Hasan, Ibrahim Ibrahimov, Ibrahim, Nazrin Zamanli
Baku Higher Oil School
10.03.2025
Ideas:
1. Smart Locker System for Malls
Problem:
In malls, there is a common issue where customers struggle to find secure places to store their
bags or personal items while they shop, especially when they want to move freely around the
mall. This problem is often felt by tourists or individuals with large bags who don’t want to carry
them around all day.
Solution:
The solution is a smart locker system that allows customers to store their items securely for a set
period of time. These lockers would be strategically placed in high-traffic areas within the mall.
Customers can access the lockers using a mobile app that shows available lockers and allows
them to pay digitally.
The app will also notify users when their time is about to expire. The lockers can be accessed
through contactless means such as QR codes or NFC, ensuring a smooth and secure experience.
The lockers would be available for rent on an hourly or daily basis, providing convenience to
customers who need a temporary storage solution.
2. Traffic Management & School Service Subscription
Problem:
In cities like Baku, traffic congestion is a major issue, particularly during school drop-off and
pick-up times. Parents often struggle with arranging transportation for their children, leading to
an increase in the number of cars on the road, which worsens traffic.
Solution:
The solution is a school transportation subscription service. Parents can subscribe to a monthly
or yearly service where their children are transported safely to and from school. The service can
optimize routes, offer carpooling options, and ensure that children are dropped off and picked up
safely and on time.
Parents can use a mobile app to book and manage the service. The app will offer features like
real-time vehicle tracking, allowing parents to monitor the location of the school bus or carpool
vehicle in real time. The pricing model will include different options, depending on the number
of children, distance from school, or frequency of the service (e.g., monthly or yearly plans).
3. To Let Service for City Dwellers.
Problems: Newcomers and city dwellers very often need to search for new apartment with their
specific requirements of bed rooms, washrooms, and kitchens. Therefore, they have to search it
door by door physically.
Solution: In this case, solution is a smart To-Let service. Where the owners of apartments will
create an account in a website or mobile app and advertise their apartment with terms and
conditions, location, and details with picture. Then the persons who are seeking apartment can
contact the renter by paying a charge for receiving services. In addition, the persons seeking
apartment can also create an advertisement in another section of the mobile application or
website.
4. Prevent Happening Bad Smartly.
Problems: Sometimes, we forget to switch off different electronic devices in our rooms and lock
our main door when going to office or outdoors. Suddenly, these types of mistakes cause
something bad for our lives.
5. Find A House Tutor Quickly.
Problems: Nowadays, we search a tutor for our child to take care of privately and we have to
face difficulties in choosing a qualified one.
6. AI-Powered Traditional Azerbaijani Craft Marketplace
Problem: Decline in Traditional Handicrafts: Traditional Azerbaijani crafts, such as carpet
weaving, pottery, and embroidery, are at risk of disappearing due to modern mass production and
a lack of awareness among younger generations.
•Limited Market Access: Artisans often have limited access to global markets and struggle to
reach customers outside of their local areas, reducing their sales potential.
Solution: An AI-powered online marketplace that connects local artisans with a global audience.
The platform would:
•Use AI to curate personalized recommendations for buyers based on their tastes, helping them
discover traditional Azerbaijani crafts.
•Implement AR (Augmented Reality) so customers can virtually try or place traditional art and
crafts in their living spaces before purchasing.
•Provide educational content about the history, techniques, and cultural significance of each craft
to increase awareness and appreciation.
7. Farm-to-Table Digital Platform for Local Produce
Problem: Lack of Direct Access to Fresh Local Produce: In Azerbaijan, many consumers are
disconnected from local farmers, relying on middlemen, which reduces the freshness of produce
and increases costs.
•Limited Knowledge of Local Agriculture: Urban consumers often lack knowledge of where
their food comes from or how it's grown, which hinders the demand for local, sustainable, and
organic produce.
Solution: A Farm-to-Table Digital Platform that connects local farmers directly with consumers,
offering an online marketplace for fresh, seasonal, and locally sourced produce. The platform
would:
•Allow consumers to purchase fresh produce, dairy, meats, and other goods directly from
farmers, ensuring lower prices and higher quality.
•Provide farm profiles, including information on farming practices, sustainability efforts, and
product origins.
•Enable subscription-based delivery services for regular fresh produce, reducing food waste and
ensuring better access to healthy food.
Detailed Evaluation of Problems
Idea 1: Smart Lockers in Malls
Empathy is a crucial tool in entrepreneurship, helping to uncover problems that might
otherwise go unnoticed. It allows us to step into the shoes of potential users, observe their
struggles, and deeply understand their frustrations. While shopping in malls, I often find myself
feeling burdened by carrying my coat, shopping bags, or other personal belongings. It becomes
uncomfortable, especially after making several purchases or when I just want to walk around
freely. This got me thinking—am I the only one who feels this way?
As I continued to observe, I noticed the same struggle among many other shoppers.
Women often handed their bags to companions, parents juggled multiple bags while trying to
manage their children, and tourists struggled with luggage while moving between stores. I also
overheard people at food courts complaining about where to place their belongings while eating.
This common frustration made me realize that carrying personal items while shopping is an
overlooked but persistent problem. To validate whether this issue was significant enough to
require a solution, I used two structured problem identification methods: Customer Feedback
(Surveys) and Competitor & Market Gap Analysis.
Problem Identification Using Methodologies
1. Customer Feedback (Surveys)
To confirm whether this issue was widely experienced, I conducted informal short surveys with
mall visitors. The goal was to understand how often people found carrying bags inconvenient
and whether they would use a locker system if one were available. The responses were revealing:
The survey results highlight a strong demand for a secure, app-based locker system in malls.
While 58.5% prefer carrying their belongings, many rely on others or leave items in their car.
67.2% are interested in using a locker system, prioritizing security (83.1%), mobile access
(56.9%), and affordable pricing (40%). Additionally, 77% are willing to pay up to 3 AZN per
hour. These findings suggest that a secure, accessible, and budget-friendly locker solution
would significantly improve the shopping experience.
Women, in particular, admitted to passing their bags to partners or friends because they
found it exhausting.
Parents with children reported feeling overwhelmed trying to hold onto shopping bags
while also managing strollers or keeping track of their kids.
Most respondents stated they would use a secure locker system, especially if it was
tech-enabled and easily accessible via a mobile app.
Link: [Link]
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These insights validated that this is a real issue that negatively impacts the shopping experience
for many different groups of people.
2. Competitor & Market Gap Analysis
Once I established that this was a widespread problem, I analyzed whether existing malls had
already implemented solutions or if a market gap existed. There is only place customer can keep
their belongings in the markets but these options are not safe and convenient.
No mall in our region currently offers smart, app-based locker solutions, whereas
some international malls have begun adopting this technology.
A growing preference for contactless and automated services presents an opportunity
to introduce a modern, tech-driven alternative that improves convenience and security.
Problem Evaluation Phase: Smart Locker System for Malls
Evaluation Method 1: Feasibility Analysis
We analyzed the technical, financial, and operational feasibility of implementing a smart
locker system in malls. This included assessing the cost of hardware, software development, and
potential revenue streams.
Technical Feasibility: The required technology (smart lockers, mobile app, QR/NFC
access) is already available and can be customized for mall environments.
Financial Feasibility: The initial investment cost is high due to hardware installation and
software development, but revenue can be generated through hourly locker rentals.
Operational Feasibility: Maintenance and security monitoring will be required, but
partnerships with malls could reduce operational burdens.
Result: Positively evaluated. The technology exists, and a structured business model can
support the system financially.
Evaluation Method 2: SWOT Analysis
Strengths:
Solves a real pain point for shoppers.
Convenient and easy-to-use mobile app integration.
Cashless, contactless, and secure solution.
Weaknesses:
High initial investment required.
Requires regular maintenance and monitoring.
Customer trust in leaving valuables inside lockers may be a concern.
Opportunities:
Increasing digitalization of retail experiences.
Rising demand for self-service and smart solutions in public spaces.
Potential for collaboration with malls and retail brands for promotions.
Threats:
Possible reluctance from mall management due to space allocation concerns.
Consumers may not be willing to pay for locker services if pricing is not competitive.
The need for strong security measures to prevent misuse and ensure user confidence.
Result: Positively evaluated. The benefits outweigh the weaknesses, and threats can be
mitigated with proper strategy.
Evaluation Method 3: Gap Analysis
We examined the current market to identify service gaps and opportunities.
Current situation: Most malls lack smart, self-service locker systems. Traditional
storage services exist but are manual and inconvenient.
Identified gap: There is no digital, on-demand locker system in local malls, creating
an opportunity for innovation.
Potential: Smart lockers can fill this gap by offering a secure, user-friendly, and
automated solution.
Result: Positively evaluated. There is a clear market gap that this solution can address.
Evaluation Method 4: Market Dynamics
We analyzed consumer demand, competitor landscape, and potential adoption rates.
Findings:
Consumer demand: Surveys show that over 70% of shoppers experience
inconvenience carrying items and would consider using a locker system.
Competitor landscape: No direct competitors in the region, but malls with manual
storage services exist.
Adoption potential: The rise of cashless payments, app-based services, and
convenience trends supports high adoption rates.
Result: Positively evaluated. Strong market demand and minimal direct competition make
this a viable business opportunity.
Final Decision:
After evaluating the Smart Locker System for Malls using Feasibility Analysis, SWOT, Gap
Analysis, and Market Dynamics, we conclude that the idea is viable and has strong market
potential. The main challenge is the initial investment and operational setup, but the lack of
competition, strong consumer demand, and technological feasibility make it a promising
startup opportunity.
Idea 2: To Let Service in City
Introduction
The rental housing market presents significant challenges for city dwellers, particularly those
who frequently move between apartments. The difficulties associated with finding, securing, and
maintaining rental properties create inefficiencies for both tenants and landlords. This study
explores these challenges, aiming to develop a tech-based startup solution that simplifies the
rental experience. The two key phases of this study—Problem Identification and Problem
Evaluation—help in systematically addressing these issues.
Problem Identification Phase
Methodologies Used
To identify key problems, multiple research methodologies were utilized:
Customer Feedback (Surveys): Conducted a survey to gather firsthand experiences
from tenants about their rental challenges, relocation frequency, and issues faced in
finding new apartments.
Competitor & Market Gap Analysis: Evaluated existing rental platforms, particularly
[Link], to assess their pricing structures, service limitations, and user satisfaction levels.
Networking and Industry Insights: Engaged with real estate agents, landlords, and
frequent movers to understand deeper inefficiencies in the rental market.
Identified Problems
1. Frequent Need for Relocation: Many city dwellers relocate every 6 months to 1 year,
often due to lease terminations, increased rents, or lifestyle changes.
2. Lack of Centralized and Reliable Information: Tenants rely on social media and word-
of-mouth, leading to unreliable and outdated rental information.
3. Broker Dependency and High Service Fees: Renters are often forced to pay brokers
huge commissions due to the lack of a direct landlord-tenant connection.
4. Limited Transparency in Rental Agreements: Many tenants face sudden rent hikes,
security deposit disputes, and unclear contract terms.
5. Mismatch Between Tenant Preferences and Listings: Renters struggle to find
apartments that match their specific needs, such as budget, location, and amenities.
Competitor Analysis Insight:
[Link] is the dominant player in Azerbaijan's rental market, but it charges high service
fees. Creating demand for a more cost-effective, this project could be a more transparent
alternative.
Problem Evaluation Phase
To assess the feasibility and impact of this startup solution, the following structured evaluation
methods are applied:
Evaluation Method 1: Feasibility Analysis
Technical Feasibility: The platform can be developed using existing web and mobile
technologies, integrating landlord verification features.
Financial Feasibility: A commission-based or subscription model can generate revenue
while keeping service fees lower than competitors.
Operational Feasibility: Requires strong marketing and partnerships with landlords for
initial adoption but is scalable long-term.
Result: Highly feasible, as the technology exists, and demand for a verified rental platform is
strong.
Evaluation Method 2: SWOT Analysis
Strengths: Personalized recommendations based on user preferences and past search
behavior.
Weaknesses: Requires significant data collection and may take time to optimize for
accuracy.
Opportunities: Rising demand for automated services and AI-driven personalization.
Threats: Users may be skeptical of AI-based decision-making in real estate.
Result: Moderately feasible, depending on adoption rates and user trust in AI solutions.
Evaluation Method 3: Business Model Compatibility
Revenue Model: Users pay a small fee instead of high one-time brokerage fees.
Customer Demand: Strong interest from renters looking to avoid broker commissions.
Scalability: Sustainable long-term but requires a critical mass of users for profitability.
Result: Promising, as the model reduces renter costs while providing consistent revenue.
Conclusion
After evaluating multiple solutions, the Online TO-Let Platform with Verified Information is
identified as the most feasible and impactful idea. It addresses key tenant concerns, competes
effectively with [Link] by offering lower service fees, and leverages technology to create a
transparent and efficient rental marketplace. The next steps involve finalizing the business
model, developing a prototype, and launching marketing efforts to attract early adopters.