Business Idea Assignment: Significance Of Innovation For Business Organisations
Task: The objective of this individual assessment submission is to learn how to develop a business idea, complemented by brainstorming and leveraging the insights and skillsets of others. Assessment comprises two parts: Please submit a 5-page briefing paper of your business idea, its essential business model components, and aspects that will influence its success. A business model canvass can be included as an appendix.
Innovation is one of the essential aspects that help in the growth of a business firm by the modification of their products and services. With the advancements in technology, the popularity of online shopping is increasing among the customer. Due to the inclination of the consumers towards the online market, the brick and motor stores and retailers are facing a severe impact on their business. The primary purpose of this assignment is to discuss the importance of innovation for the business organisations. The issue of the retailers will be explored in a detailed manner, and an innovative solution or business plan will be proposed that will help in enhancing the business performance of the retailers and store operators. A proper business model will be stated that will evaluate the details regarding the implementation and manufacturing of the proposed solution.
2. Customer Problem
It is evident that the majority of Australian citizens are inclined towards online shopping due to the facilities that are offered by the e-commerce sellers. In 2016, the sales of e-retailers in Australia was recorded around 9.58 billion U.S dollars, and this statistic is expected to witness a growth in the coming future (statista.com, 2018). The shifting of consumers towards online retailers is causing issue and challenges for the stores and traditional retailers in attracting them towards their services. Easy availability of products without the harassment of travelling is compelling the shoppers to purchase from online mediums, and they can shop from the online store at any given place and time with the help of their mobile phones or any such device or gadget. Increasing sales of the online retailers are having a significant impact on the revenue generation and sales of the store retailers. As per the reports of (forbes.com, 2018), around 94% of retail sales in Australia is being generated by the brick and motor retailers. However, the share gained by the e-commerce retailers is having a negative influence on the business of these organisations. They were afraid that in the coming future, the online e-commerce retailers might be dominating the industry.
3 Argumentation over the benefit of the new idea
This issue of the store retailers can be addressed with the help of a new innovative device that will allow them in connecting with the local buyers that are searching for product sold by them on leading search engines. The device will connect itself to the bar code scanner of the store retailers, and the managers of the will have to scan their items with the help of the new device. The device will then upload the product online with the price intact. The invention will be incorporated with software so that the products that are uploaded are customised for different search engines such as Google so that buyers searching for the products are directed towards the product offered by local stores located nearby. In addition, the gadget will be synchronised to the stores so that the managers can keep a record regarding their stocks in a hassle-free manner. This device will provide the consumers with the opportunity of purchasing their products from a nearby store without worrying about quality issues or waiting for many days for the arrival of their products. In case of any problem, they can visit the store and exchange their product. Therefore, this will help in increasing the sales volume of the store retailers.
4 Feasibility study
Market analysis is the process that helps in exploring the market in which the business is functioning. It will allow the company in gaining information regarding the demands and trends of the consumers. If the retailers do not accept the proposed business idea or plan, then the program will not be successful. Therefore, a feasibility test has been conducted that helps in collecting data regarding the acceptance of the concept in the market.
4.1 Industrial Analysis
The e-commerce retailers are gaining recognition and popularity, and due to this reasons, some retailers have started their e-commerce website in order to reach out to more consumers. However, the newly proposed gadget will be comparatively different from online sites; it will connect the consumers to who are searching for a product to the nearby stores thus, increasing the chances of a sale of the store. The device will be synchronised uniquely so that it records all the information regarding the stock of the store, therefore is beneficial for the managers of stores.
4.2 Trend analysis
It is evident from the statistics mentioned above that online shopping is in the current trend and consumers prefer to purchase products through an online medium (Hacklin, Björkdahl & Wallin, 2018). However, due to service issues and problems with the quality the consumer is a little hesitant. Therefore, the latest innovative gadget will allow the consumers to shop online from the nearby stores so that they do not have any doubt and can buy freely.
5 Business Model
5.1 Key Partners
Gaining an idea regarding the essential business partners is critical to the success of a business. The principal partners involved in this plan are employees who will be responsible for the sale of the products, consumers who will be purchasing the product, manufacturers, and software designers.
5.2 Key Activities
Business organisations are required to analyse their key activities and prioritise their various activities in order to enhance their performance. For the proposed plan, the primary activity includes manufacturing of the device, designing the software, optimising the gadget with the search engines.
5.3 Value proposition
The mentioned device is quite valuable, as it will help the store retailer in competing with the e-commerce retailers by connecting them with the nearby customers (Osterwalder et al., 2018). The consumers will be benefitted with this invention, as they will have the opportunity of purchasing a quality product at a comparatively lesser time. The device will help the store managers in tracking their stocks in a more organised manner.
5.4 Customer Relationship
Building strong relationships with the consumers is vital for the success of a business. Therefore, in order to establish a positive relationship with the consumers, this invention will provide their consumers with introductory discounts and gift vouchers.
5.5 Customer Segment
This product has been designed especially for the store manager and retailers so that they are able to compete with online e-commerce retailers.
5.6 Key resources
The primary resources that will help in the manufacturing of the device are electronic parts, different software that will connect the device with search engines and the stores (Ritter & Lettl, 2018).
5.7 Cost structure
Innovating a new device will include different types of expenditures. Some of the most basic expenditure that will help in the manufacturing of the device is the cost of designing
- Salary of the employees
- Cost of the production
- Cost of marketing
- Cost of optimising the device
- Additional taxes and more
5.8 Revenue streams
The primary aim of inventing this device is to enhance the sale and revenue generating of the store retailers (Frostig, 2018). The increased deal of this device in the market will allow the company to gain more profit revenue.
5.9 Distribution Channel
Leading electronic stores will be responsible for selling this product,and the gadget will be available on different online websites.
6. Critical Success factors of business
The success factors that can be derived from the innovative ideas are
- Right business idea
Innovation is essential for the business organisation so that they can grab the attention of the consumers and are able to gain competitive edges (Curedale, 2018). This new innovative idea will help the retailers in increasing their business and achieving competitive advantages in the market.
6.2 Right Business idea
Market research is an important aspect that reveals regarding the demands and expectation of the consumers. Identifying the need of the market is essential for the success of an invention. It is evident that most of the retailers are worried regarding the increasing competition and the switching of consumers towards online shopping. Therefore, this innovative idea will help in fulfilling the market demand by overcoming the issues of the retailers.
Competition among the business organisation is increasing day by day. It is essential for a business organisation to adopt an innovative solution in order to meet the demands of their consumers and gain a competitive edge (Aryanto & Setiawan, 2018). It is observed that the consumers are always interested towards products with the latest technology.
The device is user-friendly, and the employees will not require any additional training to handle it. The invention will be modified in a manner so that it automatically synchronises with the store and thus is quite adaptable.
This assignment helps in highlighting the significance of innovation for business organisations. The increasing trend of online shopping among the consumer is having a severe impact on the store retailers. In order to assist the store retailers in overcoming the problem an innovation has been suggested that will help them in attracting new customers towards their organisation. The device will be designed in a manner so that it helps the managers inmaintaining their inventory,therefore; will be more beneficial for business.
Aryanto, V. D. W., & Setiawan, M. B. (2018). Mediating effect of value creation in the relationship between relational capabilities on business performance. Contaduría y Administración, 63(1), 33-34.
Curedale, R. (2018). Design Thinking: Process & Methods Guide. Design Community College Incorporated.
Forbes.com. (2018). Retrieved 2 September 2018, from https://www.forbes.com/sites/barbarathau/2014/07/25/report-amazons-got-nothing-on-brick-and-mortar-stores/#11e9f5ac62d0
Frostig, E. (2018). Ruin probability in the dual risk model with two revenue streams. Operations Research Letters, 46(2), 211-214.
Hacklin, F., Björkdahl, J., & Wallin, M. W. (2018). Strategies for business model innovation: How firms reel in migrating value. Long range planning, 51(1), 82-110.
Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value proposition design: How to create products and services customers want. John Wiley & Sons.
Ritter, T., & Lettl, C. (2018). The wider implications of business-model research. Long Range Planning, 51(1), 1-8. Statista.com. (2018). Australia: retail e-commerce sales 2022 | Statistic. Statista. Retrieved 2 September 2018, from https://www.statista.com/statistics/289742/australia-retail-e-commerce-sales/