Innovation and Sustainable Business Development

The report analyzes an innovative tactic that can be used by an organisation for its effective development in the market. The innovative tactic in focus is a Smart Mirror that is adopted by Australia Beauty Clinic. The benefits that Australia Beauty Clinic can gain from the product is also analyzed in this report along with its impact in the Australian market.

Running head: INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Innovation and Sustainable Business Development
Name of the Student
Name of the University
Author note

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Executive Summary
The purpose of the report is to analyse an innovative tactic that can be used by an
organisation for its effective development in the market. The innovative tactic in focus is a
Smart Mirror that is adopted by Australia Beauty Clinic. The problem related with the
product and the manner in which it can be mitigated is provided. At the same time, the
benefits that Australia Beauty Clinic can gain from the product is also analysed in this report
along with its impact in the Australian market.

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Table of Contents
Part 1: Problem...........................................................................................................................4
1.1 Background of the problem..............................................................................................4
1.2 Definition of the problem.................................................................................................4
1.3 Evidence of the problem...................................................................................................5
1.4 Timing considerations......................................................................................................5
1.5 Consideration of the broader context...............................................................................6
Part 2: Benefits...........................................................................................................................6
2.1 Benefits to be delivered....................................................................................................6
2.2 Importance of benefits to the government........................................................................6
2.3 Evidence of benefit delivery.............................................................................................6
2.4 Interdependence................................................................................................................7
Part 3: Strategic response...........................................................................................................7
3.1 Method and criteria...........................................................................................................7
3.2 Strategic options analysis.................................................................................................7
3.3 Recommended strategic options.......................................................................................8
Part 4 Project options analysis...................................................................................................8
4.1 Project options considered................................................................................................8
4.2 Stakeholder identification and consultation.....................................................................8
4.3 Social impacts...................................................................................................................9
4.4 Environmental impacts.....................................................................................................9

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
4.5 Economic impacts............................................................................................................9
4.6 Overall evaluations of socio-economic and environmental impacts................................9
4.7 Financial analysis...........................................................................................................10
4.8 Risk Comparison............................................................................................................10
4.9 Integrated analysis and options ranking.........................................................................11
Part 5: Deliverability of recommended solution......................................................................12
5.1 Details of recommended solution...................................................................................12
5.2 Commercial and financial...............................................................................................12
5.3. Management..................................................................................................................12
5.4 Delivery..........................................................................................................................13
Bibliography.............................................................................................................................14
Appendices...............................................................................................................................16
Appendix A..........................................................................................................................16
Appendix B...........................................................................................................................17
Appendix C...........................................................................................................................18

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Part 1: Problem
1.1 Background of the problem
Australia Beauty Clinic is a beauty salon located in New South Wales. The company
provides services based on health and beauty care treatment to the people and ensures that the
satisfaction of the clients is maintained. Hence, it is necessary that Australia Beauty Clinic
develop innovative strategies so that it can gain a competitive advantage over the competitors
and dominate the beauty salon market in the country. The application of a Smart Mirror can
help in the success of the business and can increase the satisfaction level of the customers.
However, one of the problems that can be faced by the company is the difficulty in
convincing the customers about the benefit of the product. At the same time, implementation
of the product may require excessive cost and financial support from the investors. A large
space is also required as the mirror need to be placed in a position that can help the customers
remain aware of the use of the product. Therefore, convincing the customers as well as the
stakeholders is required for successfully implementing the product.
1.2 Definition of the problem
It has been evidenced that in the modern business market, the satisfaction of the
customers plays an important role for its success. According to van Westen and Zoomers
(2016), customer satisfaction can be attained by properly innovating the products and
services that are offered by an organisation. In the case of the Smart Mirror, the innovation
needs to include identifying the satisfaction level of the customers. The innovation tactics
adopted by Australia Beauty Clinic can help in gaining more customers, as the new and
creative design can be the first of its kind adopted by the company. However, there may be
certain problems with the implementation of the product as Australia Beauty Clinic need to
analyse the financial constraints that are associated with the product. At the same time

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
gaining the approval from the Government can be a challenge as due to the excess finances
that need to be spent, the Government of Australia may disallow such innovative practise.
Hence, the application of the Smart Mirror needs to consider the Government and financial
factors for its effective implementation. At the same time, technology may give out wastes
that also need to be analysed by Australia Beauty Clinic.
1.3 Evidence of the problem
The innovative ideas that can be implemented in the organisation provide a detailed
understanding of the materialistic problem. Every department faces certain dilemmas that
need to be addressed so that the innovative method can be implemented in a smart manner.
For example, the technical department need to maintain its composure so that knowledge
regarding the application of the model can be enhanced. Gaining proper innovative ideas is
required for Australia Beauty Clinic so that it can improve its position in the market and
provide a benchmark to other businesses in the same industry.
1.4 Timing considerations
A proper time is required so that business innovation can be implemented in the
market. Innovative ideas need to be implemented properly so that the objective of the
business can be attained and innovative tactics are adopted to implement the tactics. Australia
Beauty Clinic needs to ensure that a positive impact is gained with the application of the
Smart Mirror. With the growing trend in innovation, it is necessary that the company
implement the application of the product within 6 months so that it can provide customers
with satisfaction and a new application in the business. The development of the software after
its initial testing can be done within 4 weeks so that effective customer service can take place
in the organisation. Hence, effective designing can take place within the premises of
Australia Beauty Clinic so that future possibilities with the product can be maintained.

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
1.5 Consideration of the broader context
Investors and technically advanced organisations can assist Australia Beauty Clinic so
that it can develop its product in an effective manner. The application of Smart Mirror can
help Australia Beauty Clinic to gain the satisfaction of the customers and provide them with
an opportunity to promote its business in the national level. The workforce that is related to
the company can involve materialising the interest of the stakeholders. This can help in
improving the reputation of the company.
Part 2: Benefits
2.1 Benefits to be delivered
The benefits that can be acquired from the applicaton of the Smart Mirror are that it
can provide customers with an enormous choice of cosmetics. The Smart Mirror can analyse
the facial requirements of the customers and suggest products that can be suitable for them.
Thereby, this can help in gaining a competitive edge over its rivals such as Shine Beauty.
2.2 Importance of benefits to the government
The benefits to Government are that the economy of the country can improve. The
implementation of Smart Mirror for cosmetics can be used for other purposes as well. The
Smart Mirror can be used in clothing accessory industries and customers can choose the
required clothing item in a similar manner as they choose the cosmetics. Therefore, the
Government of Australia can increase the economy of the country by providing clearance for
the import of the particular product.
2.3 Evidence of benefit delivery
The benefit of the application of the Smart Mirror can be evidenced from the
increased popularity of the smart phones. The Smart Mirror is designed in a manner that

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
provides choices to the customers about the various cosmetics. This can be attributed with the
use of smart phones from which people can benefit and search for latest applications that can
help them in the daily life. Hence, fashionable people can gain benefit from the utilisation of
such a product in the beauty salon.
2.4 Interdependence
The Smart Mirror can help Australia Beauty Clinic to gain popularity in the market.
At the same time, financial condition can also improve with the implementation of the Smart
Mirror. This is because the company can maintain its creative resources and help in attracting
the customers to purchase their products and use their stores.
Part 3: Strategic response
3.1 Method and criteria
New ideas need to be gathered by Australia Beauty Clinic so that it can improve the
Smart Mirror. For example, it can introduce a speaker within the mirror that works as an
Artificial Intelligence and communicate with the customers from within the mirror.
Therefore, they can provide valuable assistance to the customers over the choice of
cosmetics.
3.2 Strategic options analysis
 Emphasis is required to hire employees as the skills required for managing the
technology require highly skilled experts with knowledge about the technology
 Australia Beauty Clinic needs to maintain the rules and regulations that are stated by
the Federal Government of Australia. The organisations need to maintain every rule
that are directly related to the ethical manufacturing of products

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
 The leaders and managers need to ensure that the ideas of the employees are valid and
creative for the success of the organisation
3.3 Recommended strategic options
 Support from the Government so that legal and financial assistance can be provided
for gaining success in the market
 The directors and production manager of Australia Beauty Clinic can intervene during
the application of the Smart Mirror. It is needed that information regarding the Smart
Mirror is gathered by implementing proper marketing research for success in the
business
Part 4 Project options analysis
4.1 Project options considered
 Australia Beauty Clinic needs to be continuously involved in the research and
development of the Smart Mirror. Maintaining communication with the stakeholders
is also required so that support can be obtained from them
 Australia Beauty Clinic need to abide by the rules and regulations of the Government
of Australia to maintain legality of the process
 Assistance from financial companies is needed so that the human resource strength
can be analysed and creativity can be maintained
4.2 Stakeholder identification and consultation
In the case of Australia Beauty Clinic, the stakeholders include the customers and the
investors. This is mainly because support is required from the investors in terms of the
finances required for the completion of the product. At the same time, the customers need to

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
be the primary target of the company and support of the customers can help in the
development of the product.
4.3 Social impacts
The application of the Smart Mirror can help in the development of the business of
the company. The effective application of the product along with the growing reputation in
the market can help Australia Beauty Clinic to gain the support of the customers. Therefore,
it is necessary that the company invest in enhancing the society so that the people in it can
understand about the new technology that exists in the market. This can even benefit the
economy of the country.
4.4 Environmental impacts
 The manufacturing of the Smart Mirror need to be free from pollution to safeguard the
environment
 The technology used need not drain the natural resources of the planet such as water
4.5 Economic impacts
 The Smart Mirror can help in the effective development of the economy in terms of
technology
 With an increase in the financial position of Australia Beauty Clinic, the financial
position of Australia can also improve
4.6 Overall evaluations of socio-economic and environmental impacts
The analysis shows that the application of the Smart Mirror can help Australia Beauty
Clinic contribute to the development of the economy and the society. At the same time
sustainable development of the product can help in keeping the environment safe from
pollutants.

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
4.7 Financial analysis
0 1 2 3 4
Year 2018 2019 2020 2021 2022
Discount factor (mid-year) 0.96225 0.89097 0.82497 0.76387 0.70728
Discount factor (start of year) 1.00000 0.92593 0.85734 0.79383 0.73503
Benefit 1 200000 200000 200000 200000 125000
Benefit 2 150000 150000 150000 150000 150000
Benefit 3 85500 85500 85500 85500 85500
Total Benefits (mid-year) $435,500 $435,500 $435,500 $435,500 $360,500
Present Value of Benefits (mid-yr) $419,060 $388,019 $359,276 $332,663 $254,975
Present Value of Benefits $1,753,994
Cost 1 -$10,000 -$15,000 -$15,000 -$15,000 -$15,000
Cost 2 -$18,000 -$18,000 -$18,000 -$18,000 -$18,000
Cost 3 -$15,000 -$15,000 -$15,000 -$15,000 -$15,000
Total Costs (mid-year) -$43,000 -$48,000 -$48,000 -$48,000 -$48,000
Capital Costs (at start of year) $0 $0 $0 $0 $0
Total Costs -$43,000 -$48,000 -$48,000 -$48,000 -$48,000
Total Capital Costs $0
Total Whole of Life Costs -$235,000
Present Value of Costs (mid-year) -$41,377 -$42,767 -$39,599 -$36,666 -$33,950
Present Value of Costs (start year) $0 $0 $0 $0 $0
Present Value of Costs (by year) -$41,377 -$42,767 -$39,599 -$36,666 -$33,950
Present Value of Costs -$194,357
Net Cash Flows $392,500 $387,500 $387,500 $387,500 $312,500
Net Present Value (by year) $377,683 $345,252 $319,678 $295,998 $221,026
Cumulative NPV $377,683 $722,935 $1,042,613 $1,338,611 $1,559,637
Chart data only:
Year 0 1 2 3 4
Present Value of Benefits ($million) 0.419$ 0.388$ 0.359$ 0.333$ 0.255$
Present Value of Costs ($million) 0.041-$ 0.043-$ 0.040-$ 0.037-$ 0.034-$
Cumulative Net Present Value ($million) 0.378$ 0.723$ 1.043$ 1.339$ 1.560$
4.8 Risk Comparison
Risk Management
Financial risk Australia Beauty Clinic need to identify the
financial stability of the company and
maintain a balance in the budget of the
company
Threat from competitors The analysis of the competitors is required so

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
that the strategies of the company can be
manipulated based on the competitors
Table: Risk management
(Source: Created by author)
4.9 Integrated analysis and options ranking
0 1 2 3 4
Year 2018 2019 2020 2021 2022
Discount factor (mid-year) 0.96225 0.89097 0.82497 0.76387 0.70728
Discount factor (start of year) 1.00000 0.92593 0.85734 0.79383 0.73503
Benefit 1 200000 200000 200000 200000 125000
Benefit 2 150000 150000 150000 150000 150000
Benefit 3 85500 85500 85500 85500 85500
Total Benefits (mid-year) $435,500 $435,500 $435,500 $435,500 $360,500
Present Value of Benefits (mid-yr) $419,060 $388,019 $359,276 $332,663 $254,975
Present Value of Benefits $1,753,994
Cost 1 -$10,000 -$15,000 -$15,000 -$15,000 -$15,000
Cost 2 -$18,000 -$18,000 -$18,000 -$18,000 -$18,000
Cost 3 -$15,000 -$15,000 -$15,000 -$15,000 -$15,000
Total Costs (mid-year) -$43,000 -$48,000 -$48,000 -$48,000 -$48,000
Capital Costs (at start of year) $0 $0 $0 $0 $0
Total Costs -$43,000 -$48,000 -$48,000 -$48,000 -$48,000
Total Capital Costs $0
Total Whole of Life Costs -$235,000
Present Value of Costs (mid-year) -$41,377 -$42,767 -$39,599 -$36,666 -$33,950
Present Value of Costs (start year) $0 $0 $0 $0 $0
Present Value of Costs (by year) -$41,377 -$42,767 -$39,599 -$36,666 -$33,950
Present Value of Costs -$194,357
Net Cash Flows $392,500 $387,500 $387,500 $387,500 $312,500
Net Present Value (by year) $377,683 $345,252 $319,678 $295,998 $221,026
Cumulative NPV $377,683 $722,935 $1,042,613 $1,338,611 $1,559,637
Chart data only:
Year 0 1 2 3 4
Present Value of Benefits ($million) 0.419$ 0.388$ 0.359$ 0.333$ 0.255$
Present Value of Costs ($million) 0.041-$ 0.043-$ 0.040-$ 0.037-$ 0.034-$
Cumulative Net Present Value ($million) 0.378$ 0.723$ 1.043$ 1.339$ 1.560$

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Part 5: Deliverability of recommended solution
5.1 Details of recommended solution
The adoption of the Smart Mirror can ensure that Australia Beauty Clinic increase its
business among the customer. The number of customers of the company can increase and
promote the company in the market of Australia. The trust of the people upon the company
can improve can improve and Australia Beauty Clinic can gain an advantage over its rival
companies like Shine Beauty. Therefore, this can help in the effective application of the
innovative strategy.
5.2 Commercial and financial
 The management of Australia Beauty Clinic need to ensure that the services provided
to the customers can improve with the application of the Smart Mirror. The customers
that want to put make-up on their faces can choose from a variety of products that fit
their skin tone.
 The company can implement strategies related to identifying customers so that it can
gain the maximum use of the product. These strategies include identifying a
marketing segment so that a proper marketing platform can be developed.
5.3. Management
 It is the duty of the board of directors of Australia Beauty Clinic to ensure that the
operations of the company are kept intact so that effective application of the Smart
Mirror can be done.
 Promotion of the use of the Smart Mirror and its advantages can help the company
gain more fan base in the market. Australia Beauty Clinic can conduct a test run
during its inauguration to identify the value it may bring to business.

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
5.4 Delivery
 The performance of every department need to be measured so that the innovative tool
can be applied in a proper manner
 Australia Beauty Clinic needs to abide by the rules of the Federal Government of
Australia so that the legality of the business can be maintained. The technical
expertise of the company also needs to be improved so that the new product can be
implemented in an effective manner.
 An organised framework is needed so that the project can get proper exposure in the
market

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Bibliography
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reconsidered. Springer.
Kogan, L., Papanikolaou, D., Seru, A., & Stoffman, N. (2017). Technological innovation,
resource allocation, and growth. The Quarterly Journal of Economics, 132(2), 665-712.
Lusch, R. F., & Nambisan, S. (2015). Service innovation: A service-dominant logic
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Schaltegger, S., Hansen, E. G., & Lüdeke-Freund, F. (2016). Business models for
sustainability: Origins, present research, and future avenues.

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Serrat, O. (2017). Business model innovation. In Knowledge Solutions (pp. 499-507).
Springer, Singapore.
Shank, T. M., Shockey, B., & Financial, R. J. (2016). Investment strategies when selecting
sustainable firms. Financial Services Review, 25(2), 199.
Tanaka, T., Hamaguchi, T., Saigo, T., & Tsuda, K. (2017). Classifying and Understanding
Prospective Customers via Heterogeneity of Supermarket Stores. Procedia Computer
Science, 112, 956-964.
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innovation for sustainability 1: Perspectives on radical changes to sustainable consumption
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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Appendices
Appendix A
1 2 3 4 5
-$2
$0
$2 Cost Benefit Analysis: Option 1
Present Value of Benefits ($million)
Present Value of Costs ($million)
Cumulative Net Present Value ($million)
Year
Todays Dollars ($ millions)

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Appendix B
0 1 2 3 4
Year 2018 2019 2020 2021 2022
Discount factor (mid-year) 0.96225 0.89097 0.82497 0.76387 0.70728
Discount factor (start of year) 1.00000 0.92593 0.85734 0.79383 0.73503
Benefit 1 200000 200000 200000 200000 125000
Benefit 2 150000 150000 150000 150000 150000
Benefit 3 85500 85500 85500 85500 85500
Total Benefits (mid-year) $435,500 $435,500 $435,500 $435,500 $360,500
Present Value of Benefits (mid-yr) $419,060 $388,019 $359,276 $332,663 $254,975
Present Value of Benefits $1,753,994
Cost 1 -$10,000 -$15,000 -$15,000 -$15,000 -$15,000
Cost 2 -$18,000 -$18,000 -$18,000 -$18,000 -$18,000
Cost 3 -$15,000 -$15,000 -$15,000 -$15,000 -$15,000
Total Costs (mid-year) -$43,000 -$48,000 -$48,000 -$48,000 -$48,000
Capital Costs (at start of year) $0 $0 $0 $0 $0
Total Costs -$43,000 -$48,000 -$48,000 -$48,000 -$48,000
Total Capital Costs $0
Total Whole of Life Costs -$235,000
Present Value of Costs (mid-year) -$41,377 -$42,767 -$39,599 -$36,666 -$33,950
Present Value of Costs (start year) $0 $0 $0 $0 $0
Present Value of Costs (by year) -$41,377 -$42,767 -$39,599 -$36,666 -$33,950
Present Value of Costs -$194,357
Net Cash Flows $392,500 $387,500 $387,500 $387,500 $312,500
Net Present Value (by year) $377,683 $345,252 $319,678 $295,998 $221,026
Cumulative NPV $377,683 $722,935 $1,042,613 $1,338,611 $1,559,637
Chart data only:
Year 0 1 2 3 4
Present Value of Benefits ($million) 0.419$ 0.388$ 0.359$ 0.333$ 0.255$
Present Value of Costs ($million) 0.041-$ 0.043-$ 0.040-$ 0.037-$ 0.034-$
Cumulative Net Present Value ($million) 0.378$ 0.723$ 1.043$ 1.339$ 1.560$

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Appendix C
Investment title:
Agency:
Y/N
Is the need clearly established (e.g. investment concept brief)?
Are the links to government policy(ies) and contributions explicit?
Is there a clear statement of the service benefits and project scope
and are future implications noted?
Are cost estimates provided for capital and operational phases?
Have cost and risk estimators signed off on the adequacy of their
work?
Is the project budget including the base cost estimate, risk
assessment, base risk allocation and contingency adequate?
Do cost and benefit estimates and analyses show value for money?
Are the project deliverables clearly stated?
Is a benefit management or evaluation plan included?
Are risk management processes in place and assumptions stated?
Does the proposal assess the project schedule and readiness
(including market appetite)?
Are governance structures identified?
Are stakeholder interfaces detailed?
Are regulatory requirements identified?
Is the project High Value/High Risk?
Have Gateway reviews been undertaken? Gate 1
Gate 2
This model checklist is designed for the project proponent’s endorsement.
Prepared by: ……………………………………………..…… Date:
…………………
Approved by: ……………………………………………..…… Date:
…………………
……………………………………………...
…………………………………………………….
(Name of approving officer or delegate) (Title)
Secretary: ……………………………………………..…… Date: …………………