Identification of Business and Stakeholders
The development of business along with the process of innovation is an important part that has to be taken up by the organization so that they can be successful in the market. It will also result in mitigating the issues that are important for the company by taking up the approaches that are innovative in nature so that it can result in developing the market in a proper manner. The use of innovation within the organization results in providing assistance for developing the market so that it can gain a competitive advantage. It also results in increasing the level of satisfaction among the customers as well as within the organizations (Johnson, 2016). The primary aim of this report will be to provide an innovative idea to a company known as BeautyCare, which will result in providing appropriate choices to the customers in selecting their cosmetics. The product that will be developed will be known as Smart Ace that will assist the customers in choosing the right and preferable cosmetic products.
It is of utmost importance that the businesses need to maintain sustainability level in the market where it is operating so that it can gain a competitive advantage. The rise in the level of sustainability will result in gaining trust within the community by the organization. Thus, the process of innovation has to be done by taking in to consideration the sustainability factor as well. The idea of Smart Ace is to attract more number of customers towards the company, which will result in increasing its level of sales in the market (Tukker et al., 2017). Most of the customers try the cosmetics in a manual way, which may not suit them and with the use of this technology it will allow the customers in virtually trying the product on their body so that its suitability can be tested. The product will be unique, as the customers can use it in their smart phones and can have the opportunity in viewing the cosmetics by choosing their preferences by sliding the products. This will allow the customers in choosing the products in a convenient manner. Thus the aim of the company will be to provide a higher level of satisfaction among the customers by developing a feature that will allow them in screening the products with the help of smart phones (Boons & Ludeke-Freund, 2013).
The idea that will be developed by the company will also result in their development on a continuous manner, as the process of innovation will result in analyzing the needs of the customers in a better way. One of the major constraint for the application will be that the customers need to be present in the company for it to operate, as it cannot be used when they are not shopping. This is due to the fact that the products that are available to the company will result in gaining competitive advantage, as the customers cannot purchase the same product from another company at a competitive price (Baden-Fukller & Haefliger, 2013). This will be an internal issue of the company, as the company does not want the similar products to be purchased from other stores at a lower price. The company will also be spending a considerable amount for the technology, which will allow them in gaining a competitive advantage in the market. Apart from the constraints, it will allow the company in providing a higher level of satisfaction among the customers as well. The changes will be done over a period of time and in initially the company will be offering this benefit to the loyal set of customers so that it can be tested in a better way (Boons et al., 2013).
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Key Partners The partners of the innovation process for the company will be the investors, shareholders and the advertisers. |
Key Activities The raw materials need to be purchased so that it can help in developing the application for the company. The service that will be provided to the customers has to be identified according to their needs (Spieth, Schneckenberg & Ricart, 2014). |
Value Proposition The application will be priced at a competitive rate so that the customers do not have any problem in using it. The customers will get a wide array of choices for the cosmetics from which they can choose. The company will promote the business idea heavily so that the customers can be attracted. |
Customer Relationships The company needs to segment the customers by identifying their needs, which can be done by researching the market properly. It will help in increasing the level of satisfaction among the customers. Feedback from the customers will also be taken so that it can help in developing the idea in a better way (Holm, Gunzel & Ulhoi, 2013). . |
Customer Segments The customers who are interested in fashion will be drawn towards the idea. The beauty salons will also be able to use it for meeting the needs of the customers. The households also will be attracted towards the business idea. . |
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Key Resources The company has to ensure that the business idea is available in the market. It will also help in increasing the brand name of the company (Wirtz et al., 2016). |
Channels The business idea will be distributed among the customers with the help of online and print media. |
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Cost Structure The company has to purchase the artificial intelligence so that it can help in building the business idea in a better way. The marketing and advertising that will be done by the company The salaries that needs to be provided to the employees for developing the business idea. |
Revenue Streams The customers who will be using it will have to pay a certain amount so that revenue can be generated from the idea. The promotion of the product will also enable ten company in gaining revenues (Charles Jr., Schmidheiny & Watts, 2017). |
The Importance of Innovation and Sustainability
The main problem for the company will be the customers. The challenge that the company will face is that it has to convince the customers regarding the product and its utility. The customers are mainly old school and may prefer to use the product physically so that it can give them a better idea regarding the product before making the purchase. The managers of the company has to be aware regarding the responses that they will receive from the customers so that it can be taken in to consideration for developing the idea in a better way. This results in narrowing down the target market, as the customers who are young and have a better sense of fashion may be interested in using the application. It is also necessary for the customers to use a smart phone so that they can enjoy the application within the store. This may take place due to the lack of using the efficient promotional methods that may result in attracting the customers. Recently, it can be seen that the reputation of the company has fallen in the market, which may hinder the process of promoting the product in the market (Ngo & O’Cass, 2013).
A major problem that can be mitigated is that by using the application it would allow the customers in applying the cosmetics in a virtual manner. The use of the products in a manual manner may result in causing irritation on the skin, which can be mitigated with the help of virtual reality where the customers will be able to use it and understand the problems that they may face. It will also allow the customers in identifying the products in a proper way so that they can make their purchases. Therefore, the process of testing the product before applying it will result in increasing the level of sales as well for the company (Naude, 2014).
The innovation method that needs to be adopted has to be disruptive in nature so that it can result in increasing the level of reputation and regain the status in the market. The use of the artificial intelligence within the product will help in its smooth functioning, as the smart phone can be used for a better purpose by the customers. The use of the artificial intelligence will also result in suggesting the best products that are suitable for the customers. Thus it can stated that the resources are needed within the organization so that it can help in implementing the techniques of disruptive innovation. Thus the company needs execute the plan in a proper manner so that it can be promoted in the market (Kindstrom & Kowalkowski, 2014).
Introduction of Smart Ace
The issues need to be resolved in the within the company so that the reputation can be earned back by the company. BeautyCare needs to use the strategies of promotion in a proper manner so that it can result in their smooth functioning. The factors of risk needs to be assessed so that it can be mitigated and proper changes can be adopted that are present in the market. The management of the organization needs to understand the market so that it can reduce the threats that are present. Thus use of proper skills by the manager will help the company in reducing the competitors of the company (Wirtz et al., 2016).
The major benefit that can be gained by the company is that the artificial intelligence can be developed with the help of this product. It will also result in enhancing the idea of the business in the future as well. It will also help in analyzing the capabilities of the company so that the target market can be identified by them in a proper manner. The demands of the people will help in understanding the capability of the firm in meeting them so that the work force in the company can be consistent. The use of the smart application will also help in measuring the level of loyalty among the customers (Schneider & Spieth, 2013).
The development of the smart application will also help in identifying the constraints that are present in the market. It has been seen that the risks that are present in the market can be reduced with the use of proper techniques. Another advantage is that the company will be able to attract the customers to the stores with the development of the new business idea. This will result in reducing the online purchases and increase the physical presence of the customers (Cheng, Yang & Sheu, 2014).
The company needs to identify the features that can be implemented within the product so that it can appeal to the customers. The use of the application can be done with the help of smart phone, which is convenient for the customers, as most of the customers have it with them. This will also result in improving the financial condition of the company so that the innovative products can be developed in a proper manner. The technologies that are being used can also be developed on a further manner by understanding the needs of the customers, which will ensure the success of the company (Kilelu, Klerkx & Leeuwis, 2013).
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Strength – The product will be innovative – Will help in assisting the customers in choosing different products |
Weakness – There is instability in the financial section due to the innovation – Size of the company is large |
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Opportunities – Will help the customers in being assisted to use the make-up in a virtual manner – Can be used in the future as a household application |
Threats – There is many competitors who may also use it – The older customers may not be willing to use the application |
Constraints and Benefits of Using Smart Ace
The analysis will be done with the help of financial data for the process of innovation that will be adopted in the company. The options that are present in the process of innovation needs to be applied within the first and second year so that it can help in increasing the level of production. The cost of the application will be given in below (Refer to Appendix 1).
The analysis of the product has shown that the propositional value of the product needs to be considered. The company needs to take up certain measures that will result in innovating the idea on a continuous manner. The company needs to make sure that the application remains unique and can be utilized in a proper manner.
The product can be used with the help of social media platform in the future years, which will also be used as a strategy for promotion. The customers who will be targeted will also result in creating an opportunity for identifying the product (Bagautdinova et al., 2014).
Conclusion
It can be concluded that the company needs to understand the requirements on the market so that it can restore its popularity in the market with the help of the innovative idea. The process will result in providing better level of satisfaction to the customers so that they can be attracted towards the company. It will also allow the company in solving the problems that are present in the market with the help of the innovative product.
Reference List
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Bagautdinova, N. G., Galieva, G. T., Pakhmutov, Y. O., & Pratchenko, O. V. (2014). Methods of regulation of processes of innovation business development. Mediterranean Journal of Social Sciences, 5(12), 75.
Boons, F., & Lüdeke-Freund, F. (2013). Business models for sustainable innovation: state-of-the-art and steps towards a research agenda. Journal of Cleaner Production, 45, 9-19.
Boons, F., Montalvo, C., Quist, J., & Wagner, M. (2013). Sustainable innovation, business models and economic performance: an overview. Journal of Cleaner Production, 45, 1-8.
Charles Jr, O. H., Schmidheiny, S., & Watts, P. (2017). Walking the talk: The business case for sustainable development. Routledge.
Cheng, C. C., Yang, C. L., & Sheu, C. (2014). The link between eco-innovation and business performance: a Taiwanese industry context. Journal of Cleaner Production, 64, 81-90.
Holm, A. B., Günzel, F., & Ulhøi, J. P. (2013). Openness in innovation and business models: lessons from the newspaper industry. International Journal of Technology Management, 61(3/4), 324-348.
Johnson, G. (2016). Exploring strategy: text and cases. Pearson Education.
Kilelu, C. W., Klerkx, L., & Leeuwis, C. (2013). Unravelling the role of innovation platforms in supporting co-evolution of innovation: Contributions and tensions in a smallholder dairy development programme. Agricultural systems, 118, 65-77.
Kindström, D., & Kowalkowski, C. (2014). Service innovation in product-centric firms: A multidimensional business model perspective. Journal of Business & Industrial Marketing, 29(2), 96-111.
Naudé, W. (2014). Entrepreneurship and economic development. International Development. Ideas, Experiences and Prospects.
Ngo, L. V., & O’cass, A. (2013). Innovation and business success: The mediating role of customer participation. Journal of Business research, 66(8), 1134-1142.
Schneider, S., & Spieth, P. (2013). Business model innovation: Towards an integrated future research agenda. International Journal of Innovation Management, 17(01), 1340001.
Spieth, P., Schneckenberg, D., & Ricart, J. E. (2014). Business model innovation–state of the art and future challenges for the field. R&d Management, 44(3), 237-247.
Tukker, A., Charter, M., Vezzoli, C., Stø, E., & Andersen, M. M. (Eds.). (2017). System innovation for sustainability 1: Perspectives on radical changes to sustainable consumption and production. Routledge.
Wirtz, B. W., Pistoia, A., Ullrich, S., & Göttel, V. (2016). Business models: Origin, development and future research perspectives. Long Range Planning, 49(1), 36-54.
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