Innovation in Business

This report discusses a business model for marketing an innovative product known as the Digi-Bottle, a water bottle that keeps water hot in cold conditions and cold as ice during the hot months of summer. The report talks about why the innovation is needed, the benefits associated with the innovation, engages in a detailed discussion of the business model, talks about the key interrelationships and critical factors that are needed for successfully marketing the product, the major risk factors involved in marketing and promotion of the product and an overall evaluation of the business innovation.

Running head: INNOVATION IN BUSINESS
Innovation in Business
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction................................................................................................................................4
1. Reasons for the Innovation – the Digi-Bottle.....................................................................4
2. Benefits of using the Digi-Bottle for Customers................................................................5
3. Business Canvas Model for Digi-Bottle.............................................................................5
3.1. Key Partners....................................................................................................................5
3.2. Key Resources.............................................................................................................5
3.3. Key Activities..............................................................................................................6
3.4. Customer Relationships...............................................................................................6
3.5. Channels for Distribution................................................................................................7
3.6. Cost Structure..................................................................................................................7
3.7. Revenue Streams.........................................................................................................7
4. Key Inter Relationships that will Support the Success of Digi-Bottle...............................7
5. Success Factors necessary for Implementation of Digi-Bottle \.........................................8
6. Risk Factors involved in Launching Digi-Bottle................................................................8
7. Evaluating the Overall Feasibility of the Idea....................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

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Introduction
All businesses need to innovate on their products and services from time to time in
order to retain the interest of customers in such products and services. Innovation can play a
vital role in enhancing the appeal of a product or a service and is something that every
enterprise should engage in, to increase sales and profit margins. This report discusses a
business model that can be used for marketing an innovative product known as the Digi-
Bottle, a water bottle that keeps water hot in cold conditions and cold as ice during the hot
months of summer, a product that can prove to be very useful indeed for travelers and people
who need to be on the go all of the time (Apanasovich et al., 2016). The report talks about
why the innovation is needed, the benefits associated with the innovation, engages in a
detailed discussion of the business model, talks about the key interrelationships and critical
factors that are needed for successfully marketing the product, the major risk factors involved
in marketing and promotion of the product and an overall evaluation of the business
innovation.
1. Reasons for the Innovation – the Digi-Bottle
An innovative product like the Digi-Bottle is likely to go down very well with customers
in the Australian market, given that this is a bottle which will keep water cool in the summers
and hot in the winters. When drinking water from a Digi-Bottle, consumers never have to
worry about keeping it refrigerated so as to be able to consume cool water from it in the hot
months of summer (Biber et al, 2017). Similarly, customers can drink warm or hot water
from the bottle in the winter months, as the thermostat that operates in the bottle adjusts the
temperature of the water in the inverse of what the outside temperature is. Digi-Bottle is
therefore a product that is likely to be of particular value for customers who have to travel a
lot for their work and who have to be on the move constantly (Burch et al.,2016). Such a

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product will be of immense value for customers who are need to be on the go, as they do not
have to worry about having to carry hot water in the winter months specifically or cold water
in the hot months again, specifically, so as to be comfortable during their travel. This is
something that will automatically be taken care of when one has the Digi-Bottle in one’s
possession (Foss & Saebi, 2017).
2. Benefits of using the Digi-Bottle for Customers
One of the major benefits that customers are likely to experience when they own a
product like the Digi-Bottle is the automatic heating or cooling facility that comes with the
bottle. Customers do not have to procure separate bottles of cold water or arrange for bottles
of hot water in the bleak winter months when they have a product like the Digi-Bottle in their
possession. The size of the Digi-Bottle will also be kept moderate so that it is easy for
customers to carry around from one place to another. This is another benefit for customers,
given the fact that the bottle will not prove to be burden for customers who carry it with them
on the go. It will not wear them down when they take it with them in the backpacks while
traveling or when they are on the move (Ehrenhard et al., 2017).
3. Business Canvas Model for Digi-Bottle
3.1. Key Partners
The launching of the Digi-Bottle product will be a joint venture between two people
who are based in the city of Brisbane.
3.2. Key Resources
Some of the key resources that are going to be put to use by the business partners to
launch an innovative product like the Digi-Bottle are financial resources in the form of a

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substantive amount of capital and manpower, in the form of a sales team of ten to twelve
executives, and a team of fourteen members who will be responsible for advertising and
promotional activities (Herrera, 2016).
3.3. Key Activities
A few of the key activities that will be undertaken by the Digi-Bottle, an innovative
product will be digital marketing through the extensive use of social media platforms and the
intensive use of e-commerce platforms for getting the product sold. Given the wide use of e-
commerce platforms and social media platforms like Facebook and Instagram in today’s day
and age, it is expected that the product will find a sufficient number of interested customers
when it is made available through such platforms (Linder & Williander, 2017).
3.4. Customer Relationships
An effort will be made on the part of the owners of the business to retain positive and
long term relationships with customers who end up buying the Digi-Bottle. This will be done
primarily for two reasons. The first will be to have a customer care executive team in place
who will make sure of the fact that customer grievances are looked into in the desired manner
so that they do not have any complaints about the product and its usage, and in the event that
they do, the matter gets resolved for them as quickly as possible by the customer care
executives (Mas-Verdi et al., 2017). Secondly, customers will be engaged with by the
business owners on social media platforms in order to acquire extensive feedback about what
it is that they think about the product upon using it, whether they would like to see any
changes being made to it, whether the product is serving them any purpose or not etc. Based
on the feedback that is procured through maintaining regular and positive relationships with
customers, the business owners will be able to make changes to the existing Digi-Bottle if

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needed or improvise it even further to make it more appealing for customers (Morabito,
2017).
3.5. Channels for Distribution
Some of the channels that will be used for the distribution of the product are ecommerce
platforms like Amazon and E-bay as well as social media platforms like Twitter, Facebook
and Instagram, largely because of the fact that these are so extensively used. The Digi-Bottle
will also be sold at well known shopping malls and departmental stores in Brisbane (Parjogo,
2016).
3.6. Cost Structure
The price of the Digi-Bottle will be fixed at $ 100 to begin with, simply because in
spite of being such a sophisticated product, it is brand new and it needs to do well in the
market for a considerable length of time before the business owners can charge customers the
actual price that they should be charging for it (Rayna & Strukova, 2016).
3.7. Revenue Streams
The revenue streams for the Digi-Bottle will constitute the sales that are incurred from
launching the product on ecommerce platforms like Amazon and E-Bay as well as social
media platforms like Facebook, Twitter and Instagram in addition to being sold at prominent
malls and departmental stores in the city of Brisbane (Souto, 2015).
4. Key Inter Relationships that will Support the Success of Digi-Bottle
The key inter-relationships that will support the success of Digi-Bottle are the positive
customer relationships that the business owners are able to maintained as well as the good
relationship that the business owners are able to carry out with investors, that is people who

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are spending money so that the product can be manufactured and sold in the market, and who
expect to reap good returns upon doing so (Valokari, 2016).
5. Success Factors necessary for Implementation of Digi-Bottle \
Good social media advertising and effective promotional campaigns at departmental
stores and shopping malls will go a long way in ensuring the successful implementation of
the Digi-Bottle business idea. People are likely to come and buy the product in large numbers
if they get positive reviews about it on social media, if they see it actively being promoted at
departmental stores and if they see that the product is being made available to them at such a
low price (Saebi & Foss, 2015).
6. Risk Factors involved in Launching Digi-Bottle
One of the major risk factors that the business owners need to be cognizant of when
promoting and marketing a product like the Digi-Bottle is that the technology based on which
the Digi-Bottle is built, will fail to work properly, leading customers to become disillusioned
with the product. Another major risk factor that can affect the sales and the promotion of
Digi-Bottle is if people are not eager to experiment and buy and use such a bottle in the first
place. They may prefer instead to opt for the use of the conventional water bottles that are
available in the market (Valkokari, 2016).
7. Evaluating the Overall Feasibility of the Idea
The launch of the Digi-Bottle is likely to do well, even if the risk factors associated with
such a launch are taken into consideration. The uniqueness of the Digi-Bottle, that is, its
inbuilt capacity to keep water cool in summer and hot in winter is something that will go
down well with customers (Saebi & Foss, 2015).

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Conclusion
Thus, the Digi-Bottle is definitely a product that ought to be launched and then
advertised as extensively as possible, given the many benefits that customers can experience
when they buy it, especially customers who have to travel a lot for their work.

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