Business Idea Generation - Li-Fi over Wi-Fi and 5G Technology

This report elaborates on developing a new business idea of Li-Fi over Wi-Fi and 5G technology with some observational insights and extensive research. It has presented a well-detailed business model canvas and has discussed the interrelationships among the different elements of business model that are important for the success with the other critical assumptions and risks along with the overall feasibility of the mode.

Running head: BUSINESS IDEA GENERATION
Business Idea Generation
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1BUSINESS IDEA GENERATION
Executive Summary
Generation of ideas is all about creating, developing and communicating about the abstract
and the concrete ideas. It is regarded as the front end of the funnel of idea management and it
lays emphasis on creating possible solutions and actual opportunities. This report has
elaborated on developing a new business idea of Li-Fi over Wi-Fi and 5G technology with
some observational insights and extensive research. It has presented a well-detailed business
model canvas and has discussed the interrelationships among the different elements of
business model that are important for the success with the other critical assumptions and risks
along with the overall feasibility of the mode.

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Table of Contents
1. Introduction.........................................................................................................................3
2. Discussion..............................................................................................................................3
2.1. Explanation of the market problem that needs solving and the reason why innovation
is required...............................................................................................................................3
2.2. Customer benefits to be generated by the idea................................................................4
2.3. Proposed business model................................................................................................4
2.4. Key interrelationships in the BM that would support the success of the idea................5
2.5. Critical success factors to be managed............................................................................6
2.6. Critical risks and assumptions.........................................................................................6
2.7. Feasibility of the idea......................................................................................................6
3. Conclusion..............................................................................................................................7
References:.................................................................................................................................8
Appendices:................................................................................................................................9

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1. Introduction
Creativity is a widely acknowledged ingredient that is necessary for an innovation. It is to
note that having a great idea does not guarantee success. A great business idea requires a
great business model for supporting and sustaining it (Comedy & Grama, 2015). Given the
importance of innovation in the Business Models, the organisational managers must always
ensure to take actions for stimulating creativity of employees. They could facilitate the
generation of creative innovation ideas by means of using Business Model Framework. This
paper shall present a report on a new business idea with a detailed business model canvas. It
shall further discuss the interrelationships among the several elements of the model while
highlighting the critical risks and assumptions and the overall feasibility. The selected idea
for this purpose is that of shifting to Li-Fi Technology from Wi-Fi and 5G technology. Li-Fi
(Light-Fidelity) is a wireless communication technology, which makes use of the infrared and
visible light spectrum for the high speed data communication.
2. Discussion
2.1. Explanation of the market problem that needs solving and the reason why
innovation is required
About 3 million of internet users in Australia are transforming into being online with
Wi-Fi hotspots (Lambert, McQuire & Papastergiadis, 2014). Wi-Fi (Wireless-Fidelity) and
5G technology are been used by many people today. It enables the people to connect to the
internet by means of transmitting the data on the radio waves. However, often customers
using Wi-Fi complain about the slow speed of connection (the speed of +/- 190 Mbps) and
that they are highly expensive (Nugroho & Sahroni, 2014). Also, Wi-Fi always needs a router
to access the internet connection. With the same, Wi-Fi often provide lower security level to

4BUSINESS IDEA GENERATION
the customer as data could easily be hacked by the external users. It is less robust and the
signal could be interrupted by the other waves.
2.2. Customer benefits to be generated by the idea
There are a total of four major reasons for why customers should use Li-Fi. The very
first one is “speed”. As per the recent researchers, “Li-Fi could transmit data at a theoretical
speed of about 224 Gbps” (Saini, 2015). However, in reality, it is equal to 1 Gbps. Telenet,
which is considered to be the fastest Internet Service provider in Australia, delivers only 190
Mbps speed. This clearly means that Li-Fi is hundred times faster than Wi-Fi. Secondly, Li-
Fi is not as expensive as Wi-Fi. For transmitting data, it makes use of LED lights, whose
average price is about 2.21 dollars. On the other hand, Wi-Fi needs a router, which is very
expensive, about 32 dollars. Such a technological backbone makes Li-Fi much more power
efficient and at the same time, offers the potential of turning every light source into data
enabler (Saini, 2015). Thirdly, customers can also be rest assured about the security provided
by Li-Fi as light cannot go through walls and this is why, the exchange of data using the Li-Fi
cannot be stolen by the hackers. Finally, it is to mention that as Li-Fi would use light for
transmitting data, this will make the signal more resistant to the electromagnetic
interferences. It further means that Li-Fi signal presents lesser risks of being interrupted with
the other waves.
2.3. Proposed business model
Key Partners
 ISP provider
 Suppliers of
technology.
Key Activities
 Providing high
speed internet
 Promotional
activities
Value
Proposition
 High
speed data
 Security
 Power
Efficiency
Customer
Relationships
 Customer
preferences/
tracking of
browsing history
 Email Address
Customer
Segments
 Local
customers
 Business and
corporate
offices

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 High level
of privacy
 More
robust
 Shopping
malls
Key Resources
 Developing
simple
process.
 Accessibility
of the
technologies.
Channels
 Existence online
 Print
Advertisements.
Cost Structure
 Fixed cost- 1,00,000
 Variable cost- 70,000
Revenue Streams
 Sales of the services.
 Forming strong partnership.
Table 1: Business Model Canvas for the proposed business idea
2.4. Key interrelationships in the BM that would support the success of the idea
The above mentioned nine building blocks of the business model canvas i.e., key
partners, key activities, value propositions, customer relationships, customer segments, key
resources, channels, cost structure and revenue streams of Li-Fi are interconnected with each
other because of the impact that they have to the very business idea. Business partners like
the connection provider and the supplier of technology would play the most important role in
the overall success of the business model as they would aid to the development and growth of
the proper levels of revenue. The key activities of the business would include the promotional
activities and providing high speed internet services to the customers. The major value
propositions for the company shall be the high level of privacy, the power efficiency, the
higher level of security, and the high speed data while being a robust technology (Sarkar,
Agarwal & Nath, 2015). Customer relationships shall be maintained by means of providing
them services as per their preferences and by giving them the benefit of tracking the browsing
history and saving email address and everything else that Wi-Fi provides, but that too with
higher security, being less expensive and providing high speed data. The major customer

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segments of the business would be the local residential customers, the business or corporate
offices and shopping malls. The streams of revenue of this new business shall be effected by
the total number of connections that are taken by different customers.
2.5. Critical success factors to be managed
The main success factors of the Li-Fi lie on the fact that it is highly reliable, have high
capacity, provides higher speed data, is highly efficient and it ensures no interference. It
could transmit data at theoretical speed of 1 Gbps and is also not as expensive as Wi-Fi. It is
also to mention that Wi-Fi requires a router which is very expensive but Li-Fi is cheaper and
is much more power efficient and at the same time, offers the potential of turning every light
source into data enabler. Li-Fi cannot be stolen by the hackers and it would use light for
transmitting data, this will make the signal much more resistant to the electromagnetic
interferences. This further means that Li-Fi signal represents lesser risks of being interrupted
with the other waves.
2.6. Critical risks and assumptions
The critical risk factor associated with this business idea is the fact that with Li-Fi,
there needs to be 24/7 availability of light. One cannot switch off the light in any way.
However, it can only be dimmed to ensure uninterrupted data transmission. This further
limits down the situations and locations where Li-Fi might be used. Furthermore, the other
risk with this is that it might have limited range as the ling signal cannot penetrate across the
walls of the rooms. Although, this makes the Li-Fi more secures, limited range could be a
source of nuisance for some customers.
2.7. Feasibility of the idea
There is a very close link in between technology and marketing- AR, AI, VR, 3D
printing, IoT etc. and this list is getting longer with the passage of time. Li-Fi is likely to

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become a significant and exponential enabler for the adoption and growth of majority of these
technologies (Sharma et al., 2018). It is 100 times faster than Wi-Fi and is much more
secured and reliable. It can be used in almost all the commercial and residential areas like
Wi-Fi and this is why, the occupancy of the radio frequency spectrum is keeping on
increasing with each passing day, which is further limiting down the capacity of the data that
could be transmitted over the radio waves. With the same, it is also to mention that Li-Fi is
free from the issues like neighbouring network interference, the interference generated from
sensitive electronics and the radio interference that is making it much more energy efficient
(Karthika & Balakrishnan, 2015). A huge deal of efforts are been put for miniaturising the
technology today so that in the near future human beings can move from the mobile networks
to the Li-Fi networks that they could be enabled by any device around them. Hence, it is to
state that Li-Fi would be highly successful in influencing the day to day lives of the people
and managers all around the globe if adopted and implemented successfully.
3. Conclusion
Hence, from the above analysis it is to conclude that Li-Fi is much more efficient,
cheaper and secured than Wi-Fi. It is a very powerful technology that could have some
revolutionary implications in the world of Information Technology. Majority of the
companies have already started realising its importance to provide a ground-breaking
connectivity solutions for wireless data transmission, making use of radio-waves. This
business model of Li-Fi shall be effective in improving and making the lives easier for many
in the contemporary world.

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References:
Comedy, Y. L., & Grama, S. (2015). The critical role of failure in the innovation process:
How failures help inventors succeed. Technology & Innovation, 17(4), 169-176.
Karthika, R., & Balakrishnan, S. (2015). Wireless communication using Li-Fi
technology. SSRG International Journal of Electronics and Communication
Engineering (SSRG-IJECE), 2(3), 32-40.
Lambert, A., McQuire, S., & Papastergiadis, N. (2014). Public Wi-Fi: Space, sociality and
the social good. Australian Journal of Telecommunications and the Digital
Economy, 2(3), 45.
Nugroho, E., & Sahroni, A. (2014, November). ZigBee and wifi network interface on
Wireless Sensor Networks. In 2014 Makassar International Conference on Electrical
Engineering and Informatics (MICEEI) (pp. 54-58). IEEE.
Saini, H. (2015). Li-Fi (Light Fidelity)-The future technology In Wireless communication. J.
Comput. Appl, 7(1), 13-15.
Sarkar, A., Agarwal, S., & Nath, A. (2015). Li-fi technology: Data transmission through
visible light. International Journal of Advance Research in Computer Science and
Management Studies, 3(6).
Sharma, P. K., Ryu, J. H., Park, K. Y., Park, J. H., & Park, J. H. (2018). Li-Fi based on
security cloud framework for future IT environment. Human-centric Computing and
Information Sciences, 8(1), 23.

9BUSINESS IDEA GENERATION
Appendices:
Business Model Canvas of Li-Fi network service
Key Partners
 ISP
provider
 Suppliers of
technology.
Key Activities
 Providing high
speed internet
 Promotional
activities
Value
Proposition
 High
speed
data
 Security
 Power
Efficiency
 High level
of privacy
 More
robust
Customer
Relationships
 Customer
preferences/
tracking of
browsing history
 Email Address
Customer
Segments
 Local
customers
 Business and
corporate
offices
 Shopping
malls
Key Resources
 Developing
simple process
to ensure that
everyone is able
to access the
facility.
 Accessibility of
technologies.
Channels
 Existence on the
websites
 Print
Advertisements.
Cost Structure
 Fixed cost- 1,00,000
 Variable cost- 70,000
Revenue Streams
 Sales of the services.
 Forming strong partnership.