Business Idea Assignment: Introduction To MetPro
The objective of this individual assessment submission is to learn how to develop your own business idea, complemented by research and observational insights that detail why the need is compelling. Please submit a 1500-word business report of your idea, a detailed business model (BM) canvas, discussion of the interrelationships among the BM components that are essential to success, critical risks and assumptions, and overall feasibility. The business model canvas must be discussed in the report and included as an appendix.
1. Effective explanation of the customer/market problem that needs solving and/or the reason the innovation is required. (15%)
2. Persuasive argument of the customer/client benefits to be generated by the idea (10%)
3. Discussion of the proposed business model (15%) ( not Business Model Canvas)
4. Identification and discussion of the key interrelationships in the BM that will support success of the idea (10%)
5. Critical success factors to be managed during execution of the idea (15%)
6. Identification of critical risks and assumptions (10%)
7. Evaluation of the overall feasibility of the idea (15%)
8. Quality of written submission, minimum 8 peer-reviewed journals, and APA referencing format (10%).
The report on business idea assignment is focusing on the idea of developing metabolism detectors called ‘MetPro’ which can track the health of individuals through the analysis of breathe. This report on business idea assignment provided that this product will help the customers in attaining their fitness goals and improve their metabolic health. It is further provided that the daily nutritional plan offered by MetPro will help in balancing fats and carbohydrates in the diet and therefore, will benefit the customers.
Unbundling business model will be utilized for dividing the business in three parts i.e. product innovation, customer relationship and infrastructure management. This report on business idea assignment also focused on the interrelationships in the business model components which involve value proposition, customer segments, customer relationships, key resources, key activities, revenue streams, distribution channels, cost structures and key partners. The critical success factors like adequate funding and resources, cost, product quality and performance should be managed for the success of the idea, The report on business idea assignment also highlighted that increasing prices, high capital investment and competition are the risks in the business model. However, the idea is overall feasible and should be executed in the marketplace.
1. Introduction and Background
This report on business idea assignment is based on the business idea of developing a metabolism detector which assists an individual in tracking and improving the metabolic health. It focuses on the business model canvas, interrelationships, critical success factors, assumptions, risks and the overall feasibility of the idea.
a) The Business and Its Industry
The business will focus on the portable product called ‘MetPro’ which will measure the metabolism of individuals easily by determining the CO2 concentration in the breath. The business will belong to the health and fitness industry which makes the use of technology for allowing the customers to attain their fitness goals.
b) Customer and Market Problems
The changes in lifestyle have increased the health related problems among the individuals resulting in a slow metabolism. Also, the metabolism testing is currently available only in clinics and hospitals which make it difficult for the customers to get it done on daily basis. Therefore, the market requires a product which can be used anytime at anyplace.
2. Idea Generation
a) Business Idea/ Problem Identification/ Reason behind Innovation
The business idea behind ‘MetPro’ is to bring an improvement in the metabolic health of people with the help of a portable device that can accurately measure metabolism through the use of a CO2 sensor. This device will perform the function of indicating the type of fuel used by the body for producing energy. The current lifestyle of customers as shown in the business idea assignment has increased obesity among them which is one of the major problems faced in current scenario (Wu, Hou, Dai, Hu & Wu, 2019). The main reason behind this innovation or business idea is to support the fitness goals of the customers including performance optimization, weight loss or improved metabolic health. The device and the app will allow the customers to track how their metabolism is being affected due to their physical activity, sleep and nutrition patterns and also provides customized meal plans to improve the results. Also, it will solve the problem of visiting a clinic for such testing and will assist the customers to track the metabolism through the CO2 concentration in breathe at different times of the day after different activities like workout, sleep, etc. (Snell, 2016)
This idea will offer a number of benefits to the clients. Firstly, it will allow the customers to track their metabolism on regular basis which was earlier not possible without going to a hospital or clinic. Secondly, it will offer a customized nutrition plan to the customers on the basis of whom they will be able to know whether they require more of fats or carbohydrates in their diet for achieving their fitness goals. It can further be argued on this business idea assignment that there is no complicated procedure involved in the tracking of metabolism as the device easily analyses breathe of an individual and produces the results within seconds which is the third benefit to the client. The fourth benefit offered to the client by the product is providing assistance in workout optimization as it helps n tracking whether the individual has enough energy before starting a workout or there is a requirement for some nutrition (Kanzaria Brook & Stey, 2018).
c) Proposed Business Model
Unbundled business model will be used in order to divide the business into three parts i.e. product innovation, customer relationship and infrastructure management for focusing on a single activity and reducing unnecessary clashes (Moellers, von der Burg, Bansemir, Pretzl & Gassmann, 2019). The proposed business model is based on the nine building blocks provided by Osterwalder & Pigneur.
Key partners- Technical experts, health experts, application developers, material suppliers, product designing firm and the ultimate consumers are the key partners of the business.
Key Activities- The business will undertake intensive research and development for utilizing innovative technology for producing a product that can improve health of its customers. The key activities mentioned in the business idea assignment will also involve managing operations and taking steps for attracting and retaining talent and customers, marketing and sales of the product along with handling after sales services.
Value Propositions- The value proposition of the business is that it allows the customers to track metabolism and get a daily personalized nutrition plan in a simple way at home without visiting a clinic.
Customer Relationships- The business will establish strong relationship with the customers by interacting with them through website, mails and social media. This relationship will be formed by providing all the necessary information and obtaining the feedback to the customers.
Customer Segments- This block mentioned in the business idea assignment illustrates that this product will target the customer segment between the ages of 18- 50 years and will include both men and women who are willing to attain their fitness goals.
Key Resources- Key resources involve talented workforce, technology including technical material, financial resources, intellectual resources like patent and physical resources like building and inventory.
Channels- The product will be promoted through different channels like social media, search engine optimization, email marketing, newspapers, affiliate marketing and TV.
Cost Structures- The major cost drivers involve technology development, salaries of experienced tech and health experts, marketing costs, and fixed cost (Mu?ller, 2019).
Revenue Streams- Revenue will be generated through sales of product and maintenance services.
d) Key Interrelationships
The business idea can become a success only with the help of key interrelationships that exist in the business model deconstructed in the business idea assignment.
Value Proposition, Customer Segments and Customer Relationships- The diverse needs of the customer segments can be met only through a unique value proposition that meets their fitness requirements. Also, for staying updated regarding the needs of the customers, it is important to form a strong relationship with them.
Key resources and Key Activities- The key activities of the business as outlined in the context of business idea assignment can be performed only with the help of the key resources i.e. human resources, physical resources, intellectual resources and finance. Employees are needed for the performance of all the activities supported by other resources.
Distribution Channels and Revenue Streams- The distribution channels will familiarize the product of the business among the customers through which the revenue will be generated. The customers will also get to know about where they can get the repair and maintenance services through these distribution channels.
Key Partners and Cost Structures- Costs are incurred for the development of product by obtaining the services of all the key partners (Downs & Velamuri, 2018).
e) What are the critical success factors outlined in the context of business idea assignment?
Adequate Funding and Resources- For the success of the idea, it is necessary that appropriate funding and resources such as human resources, physical resources, etc. are maintained; otherwise the desired results cannot be attained.
Cost- Cost is another critical success factor which needs to be constantly monitored as it has the capability of putting the business into severe losses. It should be ensured at all times that the costs incurred are under budget and steps should be taken for keeping the costs minimum for maximizing the profits (Garci?a-Villarreal, Ran, & Martin, 2019.).
Product Quality- The idea portrayed herein business idea assignment will be a success only when the quality of the metabolism detector will be up to the mark. For this, it needs to be ensured that the product is durable and does not get damaged easily.
Product Performance- Since it is a health related product, it should be ensured that the product provides accurate result to the customers. Inaccurate results can result in failure of the idea and losses for the business.
f) Critical Risks and Assumptions
With the increase in prices in the market, the inability of people to invest in health tech products like MetPro can become a risk for the business. Moreover, technological products require huge capital investment and some failures at the initial stage can lead the business to fall short of finance which, in turn, is also risky for the business. Also, there are a number of firms who are bringing new innovative health products in the market which can further create risk for the success of MetPro.
However, the idea executed in the segments of business idea assignment has been framed on the basis of assumption that the health sector requires a strong innovation through which the customers can get their check-up done on an instant basis along with getting a customized plan which they can follow for improving their health. It is also assumed that this technology will offer convenience to the customers and its success will assist in overcoming the risks involved (Asemokha, Musona, Torkkeli & Saarenketo, 2019).
The evaluation of the idea explored in the business idea assignment provides that it will benefit the customers by providing a way for improving their health at their convenience. This will offer competitive advantage to the metabolism detector and will assist in achieving success in the market. The importance of health and health related products is increasing in the market and therefore, it offers high profit margin to the business. Currently, there are few competitors who are coming up with innovative technology in health sector (Chauvin & Laetitia, 2016).
The current lifestyle as shown in this business idea assignment has resulted in slow metabolism among the public and therefore, the target market of the product is rapidly increasing. This product will be able to meet customer requirements and their fitness goals and will offer customized nutritional plans. Social media, TV, newspapers, etc. will be used for reaching out to the customers. However, the founder has limited skills and experience in this field but the combined efforts of team will bring the desired results for the idea. The initial investment for the idea will be higher but will be easily managed by the founder. Therefore, the idea depicted in the business idea assignment is feasible and is expected to bring higher profits for the business (Linton & Solomon, 2017).
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Downs, J. B., & Velamuri, V. K. (2018). Business model innovation in a knowledge revolution: an evolutionary theory perspective. Managerial and Decision Economics, 39(5), 550–562.
Garci?a-Villarreal E., Ran B., & Martin S. (2019). Critical Success Factors of Medical Technology Supply Chains. Production Planning & Control 30(9), 716–35.
Kanzaria H, Brook R, & Stey A. (2018). How Disruptive Innovation by Business and Technology Firms Could Improve Population Health. Jama - Journal of the American Medical Association 320(10), 973–74.
Linton, J. D., & Solomon, G. T. (2017). Technology, innovation, entrepreneurship and the small business—technology and innovation in small business. Journal of Small Business Management, 55(2), 196–199.
Moellers, T., von der Burg, L., Bansemir, B., Pretzl, M., & Gassmann, O. (2019). System dynamics for corporate business model innovation. Electronic Markets : The International Journal on Networked Business, 29(3), 387–406.
Mu?ller, J.M.. (2019). Business model innovation in small- and medium-sized enterprises. Journal of Manufacturing Technology Management, 30(8), 1127–1142.
Snell, L. (2016). Health care meets high tech. Alternatives Journal, 42(3), 32–34.
Wu, Z., Hou, Y., Dai, Z., Hu, C. A., & Wu, G. (2019). Metabolism, nutrition, and redox signaling of hydroxyproline. Business idea assignment Antioxidants & Redox Signaling, 30(4), 674–682.
Business Model Canvas
- Operations Management
- Attraction and retention of talent
- Attraction and retention of customers
- Sales and After sales services
- Men and Women
- Want to attain fitness goals
- Technology including technical material
- Financial resources
- intellectual resources like patent
- Physical resources like building and inventory.
- Search engine optimization
- Email marketing
- Affiliate marketing
- Salaries of experienced tech and health experts
- Marketing costs
- Fixed cost.