Innovation and Business Development - Assignment

INNOVATION AND
BUSINESS DEVELOPMENT

Introduction
Innovation in customer goods industry helps in
its development
The idea in focus is the pen structured water
purifier
The needs of the customers in drinking clean
water and maintaining healthy is required

New idea
A pen structured water purifier can help
the customers travelling around the
globe. It can help in analysing the salinity
and toxicity in the water

The market problem
Lack of target customers
Convincing the people about product
Lack of talented and efficient resources

Apply business model canvas proposed by Osterwalder and
Pigneur
It helps in generating ideas related to the value of the
innovation
Disruptive innovation can be used for developing changes
Business model used

Working of the process
Owners of cars can
register their cars with
the business using the
company’s mobile
application.
The owners’ cars
would be tested for
quality and legal
ownership
The customers who
wish to rent the car
can register on the
mobile application and
rent out their
preferred car for their
preferred time
duration
The customer’s identity
would be validated and
police verification
would be conducted
Car can be rented to
customer

Financial feasibility
Year 1 Year 2
Net income $193,522 $197,392
Depreciation $72,500 $73,950
Accounts receivable ($90,000) $0
Inventories $0 $0
Accounts payable $0 $0
Amortization 5,000 5,000
Other liabilities 10,000 10,000
Other operating cash flow items 0 0
Total operating activities $191,022 $286,342
Capital expenditures $0 $0
Acquisition of business 0 0
Sale of fixed assets ($82,725) ($84,380)
Other investing cash flow items 0 0
Total investing activities ($82,725) ($84,380)
Long-term debt/financing ($95,000) $0
Preferred stock 0 0
Total cash dividends paid 5,000 5,000
Common stock 0 0
Other financing cash flow items 0 0
Total financing activities ($90,000) $5,000
$18,297 $206,963
$0 $18,297
$18,297 $225,260

Role of investors
Investors need provide support in terms of finance
They need to develop the resources and capabilities of the company
Investors need to ensure that the finances are maintained by
analysing the budget

Bibliography
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Innovation or Much Ado about Nothing?.
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budgeting.
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