The Current Event: Ori Living
Written Date: May 11, 2020.
Written Location: Durham, NH, USA
I wanted to include this case into Chapter 8 long time ago. Not only this case is trendy but also this case is included for the honor of class MGT 732, Exploration In Entrepreneurial Management. Two years later, a lot of information about Ori Living showed up on search engines. Surprisingly, similar companies have entered in the market.
The Timeline
Ori, a term draw from the word, origami, which allows a piece of paper to be folded into decorative shapes and figures. Massachusetts Institute of Technology (MIT) Media Lab has been using this idea to promote the development of its smart robotic furniture.
Living space in large cities is always limited so the purpose of this smart furniture is to optimize space in small apartments. In 2011, architectural robotic project was directed by city of science professor Kent Larson at MIT. His group was focusing on how to address the living situation in large cities. The Ori co-founder Hasier Larrea joined MIT Media Lab’s city science research group in 2011. The principal research scientist Kent Larson presented the concept of robotic interiors during the TEDx Talk in 2012. With the extensive use of advanced technologies including robotics, architecture, computer science and engineering, Ori created what is called “architectural robotics” to design smart, modular furniture. For example, users can tap the application on smart phones to operate the unit for changing the setting based on different circumstances. In early 2015, the MIT Media Lab finished the construction of initial working prototype.
On the basis of the inspiration from Media Lab-LEGO Mindstorms, the research group started building the standardized components for the furniture itself. After finishing the first prototype unit, Ori team started its market research from many different perspectives. Some issues brought up from developers to tenants later were addressed. In order to achieve the future success of the Ori product, the MIT Media Lab installed some early version of the system in Boston and other major cities across the United States for testing purpose.
The plan of Ori development was finished successfully based on holding a concept, developing products and attracting investment. After years of development, the company, Ori Living was launched. In 2020, Ori Living got investment from IKEA and Google. IKEA will start its robotic furniture production first in Hong Kong and Japan. Google will target customers in the United States.
The Take
In the past 10 years, the US college tuition has gone up more than 63%. According to CNBC, around 70% of college graduates have averagely $37,000 student loan. Research shows that 19% of college students are homeless and 56% are housing insecure. Young people are often stressed about their living expenses, not to mention living in large cities like Boston and New York City. For Example, in Boston, Massachusetts, $1500 can only rent you a 359 square feet studio apartment, but in Berlin, Germany, $1500 can rent you an apartment four times larger. The mayor of Boston, Thomas Menino, said that lacking off affordable housing for young people is one of the biggest challenges the city faces. Due to this problem, many developers attempted to build more tiny mini apartments. Nevertheless, most people don’t want to live in those little conventional apartments. Therefore, the Ori Living has been a positive alternative.
In order for cities to achieve and maintain cultural and economic competitiveness, they have to provide housing for young people. Great cities in the world almost all of them are pricing young people out of the market. The best way to do it in the short term is to shrink the size of the space. But when you shrink it you cannot have certain rooms. Living space in large cities is always limited. Instead of creating more rooms, MIT Media Lab introduced robotic furniture to optimize current living space. Smart robotic furniture sound as if they are unrealistic and expensive. But the professor of city science, Kent Larson, at MIT made it work. The launch of Ori Living company has increased beyond our wildest expectations, which has been largely driven by technological breakthrough occurring on researching basis.
The MIT Media Lab started building the standardized chassis of a regular apartment. Meanwhile advanced technology was brought into the apartment by the research team. The most interesting implementation was the robotic wall, which plays a pivotal role. For instance, the space can convert from exercise to a work place if you run a virtual company. A small apartment can be functioned as if it is twice as big. Furthermore, if you have a micro apartment, the bed will dominate everything. The problem here is not creating rooms. Using robotic furniture, which dynamically enables users to reconfigure the apartment, is a totally effortless way.
IKEA and Google were attracted to invest Ori Living in 2020. The actual robotic furniture has not been prevalent in the market. However, within couple years, we will see robotic furniture leading by Ori Living can be an indispensable part of our living and working environment.
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