Idea Generation and Business Model Development
30% of unit assessment
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.
The assessment criteria are detailed below.
Format: Business Report
Business Model Canvas format: From Osterwalder & Pigneur (2010)
Learning Outcomes Assessed:
INNOVATIVE BUSINESS IDEA: GPS ENABLED SHOES
Business innovation is vital for the product acceptance and enhances the market share of business organization. With the aid of disruptive innovation, business organizations can invade the market. In this regard, the concerned innovation is with the GPS Enabled Shoes development. It can help to track the older people who are prone to lose their memory and forget things easily. In this report, based on the business model the critical success factor of the product has been identified that capability development is vital as per market and capital risks.
Innovation in the business idea is mostly used in the case of a start-up business. Disruptive Innovation in the new business idea becomes successful where efficient management and the entrepreneur of the company presents strategies. This business report is based on creating new idea of GPS Enabled Shoes that can make changes in the accessories market as this product can use for both daily purpose and taking track of the old people and children who need excessive care and demonstration in the family. The business idea of GPS Enabled Shoes needs an assessment of its relative business model for market expansion. In this report, application of the business model canvas would do to find out the interrelationship between the components and critical success factor of the product.
Possible sketch of the product:
Figure 1: Possible sketch of the product
(Source: Ghezzi & Cavallo, 2018)
The reason innovation is required:
The entrepreneur creates the innovative business idea of GPS Enabled Shoes in order to solve customer’s problems of tracking their children, mentally unstable family members, and old people. The shoe is a regular accessory that is used by everyone. Installing tracking facilities in the shoes will be helpful for the people to track their dear one although they are busy in their daily work (Ghezzi & Cavallo, 2018). The GPS Enabled Shoes can be beneficial for the health and social care provider in the mental healthcare center to track their patients regularly if they ran away from the center. However, GPS Enabled Shoes in the shoe market will be very attractive as it is the combination of style and technology for duel use. Innovation in the accessories is already entered in terms of heartbeat calculating watch for health purposes. This innovation in the shoes will help to manage the health problems of the customers along with their family members by tracking their location.
Customer benefits of this idea:
Different types of facilities are provided in this product so that customers get benefits. The benefits are given below,
GPS Enabled Shoes to provide peach of mind to the family members and those who caring. The GPS Enabled Shoes leverages procedural memories that mean the people with an advanced memory disorder can typically remember to wear shoes (Yang et al. 2019).
|Wireless charging, battery capacity||Customers can easily charge this device anywhere. The capacity of the battery of this device is 60000MAH, which allows having the capacity of 48 hours constant tracking facility.|
|Tracking movement||GPS Enabled Shoes allows to give tracking movement along with the landmark. The caregiver and family members can easily track the right and left movement. When the charges below 20%, it will give alert the users.|
|Easy mapping||By login to the online portal by the computer, mobile, and tablet, people can easily track the movement of the users.|
|Reliable coverage||Cellular technology in the GPS Enabled Shoes enables connectivity in a different country by connecting the device with the mobile GSM coverage tower. Example: in the US, connectivity is available by 2G T-Mobile and/or AT&T GSM coverage.|
|Customized Alerts||By creating geo zones near the address people can get a notification while the GPS Enabled Shoes to leave the specific area.|
|Price||Estimated prices of GPS Enabled Shoes will £12.95. The price is reliable.|
Discussion of the proposed business model (business model canvas):
Key partner of the company is suppliers of raw materials for shoe manufacturing, tracking cheap, IT firms for networking service, leather for shoe manufacturing. Social media channel for the promotion has been defined as key partners.
Providing tracking facilities to the customers for their family members us the key activity of the product GPS Enabled shoe. The business idea is involved under the key activity of demonstrating the people suffering from memory impairment and wandering .
GPS Enabled Shoe provide unique tracking shoes to the healthcare providers and customers. Maintain cordial relationship with the customers is the main way of value proposition (Ripsas et al. 2018). The product has battery capacity of 60000MAH that allows having a capacity of 48 hours constant tracking facility.
The personal, fair and trusted relationship has to be maintain with the customers for business expansion with new business idea. Customers value proposition by service quality is the major aim of GPS enabled shoe. Regular connection with the customer is the important strategy. Social media and text message connection is the medium of maintaining relationship.
Customers of mental health issues, old people with dementia, children are the major segment in this business. GPS enabled shoe has segmented customers of higher financial background.
Technological resources in GPS enabled shoes will take from IT firms for tracking facility in the products (Weking et al. 2019). Approaching the idea with product demo to the big shoe retailers market segmentation of the company will do. Under this business capital from the banks and through the approval from the government will take.
Social media and digital media channels will use by GPS enabled shoe for customer attraction. Online channel Facebook, Twitter and Instagram are the major place for promotion.
In the business idea of GPS enabled shoes the company 30% of the total revenue is used for infrastructural development. The business would follow fixed cost structure.
Estimated $5 million annual revenue will enjoy from this business for effective revenue steam generation. Transaction-based revenue is found in the organization. (Please refer to Appendix 1)
Key interrelationships in the BM that will support the success of the idea:
The interrelationship between the components of the business model shows that key activities of the company to provide a unique quality of a product of the company help to maintain effective customer relationship. GPS Enabled Shoes to provide safety for the kids and older persons with mental instability by giving warning to the customers make them alert. Kids who keep the parents worried for 24x7 are kept under observation by this unique technology in the shoes. Availability of the key resources allow the product GPS enabled shoes to develop their revenue stream. The remarkable security system in the shoe is suitable as it maintains the value proposition of the customers. Based on the cost structure, the company has fixed the product price of GPS Enabled Shoes. The key partnership with the suppliers and retainers allows the business to enjoy a high revenue stream (Ripsas et al. 2018). The GPS Enabled Shoes will use social media promotional channels such as Facebook, Twitter, and Instagram for customer segmentation. By the help of social media and digital media channel promotional channel, the company can be able to make an effective business channel in the market (Beinke et al. 2018).
Critical success factors
The critical success factor of the business idea GPS Enabled Shoes is laid under the service facility, key features, capacity, and reliable price. The wandering device is very smaller and easily fits in the shoe (Weking et al. 2019). The shoes are available for kids, young people, and old people so that customers can not face issues to purchase. The product runs on the rechargeable battery that lasts for 2days. The GPS tracker installed the middle of the shoe under the pad so that it cannot be damaged easily. The pads last up to 30 months that depends on regular wear and high use. Apart from that market need for this kind of innovation is very high for healthcare purpose and household purpose (Keane et al. 2018). Based on the market demand and reliability, the product idea in the market will be successful.
Critical risks and assumptions:
GPS Enabled Shoes is the start-up business idea where different types of risk factors are found that negatively impacted on the operational efficiency of the business. Risk factors are given below,
Capability risks: An entrepreneur can face capability risk in order to complete the project timely. Lack of market knowledge is standing as a potential barrier to the success of this start-up business idea.
Capital risk: The business idea shows that the need for capital for business establishment would be very high. From the production to promotion, the company has to ensure strong capital in this business.
Market risk: Due to the new business idea, the company can face trust issues in the market. Customers due to less information on this product may face issues in the market.
Competition risk: Products with similar facilities already exist in the market that has negative impact on the business efficiency of GPS Enabled Shoes. Competition from SmartShoe can be found as a major threat to this business.
Overall feasibility of the idea:
The feasibility of this business idea is based on assessing the demand for the product in the market. By focusing on the budget and ongoing cost of the product and service, a company that is adopting this business idea can be able to make an effective business plan (Sort & Nielsen, 2018). The business idea should stay away from the marketing competition fast and has to focus on developing product quality. This is because it will allow the company to deal with the customers. The role of branding is very much efficient to make the business plan effective in the market. Based on the feasibility analysis, it can assume that this business idea will go a long way in the market due to customer demand.
Thus, it can conclude about the business idea of GPS Enabled Shoe where the application of the business model canvas provides an idea about the effective market plan. It has been found that social media and digital media branding is a necessary part of this business idea. This business idea changes the concept of innovation as it is based on the current market demand of the customers.