Report on Smart Mirror Innovation and Business Development for ABC

This report focuses on the implementation of a smart mirror as an innovative product for Australia Beauty Clinic. It begins with an executive summary and introduction, followed by an identification of the innovation and an evaluation of business models using a business model canvas. The report then delves into problem identification, highlighting the challenges of customer adoption, and details the benefits of the smart mirror, such as improved customer satisfaction and brand loyalty. A strategic response, including a SWOT analysis, is proposed to mitigate threats and capitalize on opportunities. The report includes a project options analysis, comparing different scenarios, and concludes with recommendations for successful implementation, emphasizing the need for promotional strategies and technical expertise to ensure the product's feasibility and value. The report underscores the potential of the smart mirror to enhance Australia Beauty Clinic's competitiveness by leveraging artificial intelligence and addressing customer needs effectively.

Innovation and Business
Development
STRATEGIC ASSESSMENT

Contents
Executive summary 1
1. Introduction 3
2. Identification of the innovation 4
3. Evaluating business models 5
4. Part 1 Problem 6
5. Part 2 Benefits 7
6. Part 3 Strategic response 8
7. Part 4 Project options analysis 9
8. Part 5: Deliverability of recommended solution 11
9. Conclusion 12
Bibliography13

Executive summary
The report focuses on a new and innovative product that can help in improving the business of
Australia Beauty Clinic. The product in focus is a smart mirror that can be utilised by the company in
order to satisfy the customers. However, the problem related to the product is that it needs to be
conveyed to the customers. The smart mirror can help customers choose a type of cosmetic that they
see fit for their face. The application of business model canvas for identifying the value of the
company is stated and the benefits that can be generated from the products are provided in the
report. Recommendations are provided so that the product can be used in an efficient manner in the
future.
Innovation and Business Development
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1. Introduction
In the modern world, innovation is necessary so that business organisations can remain competitive
in the market. The important issues that exist in an organisation need to be mitigated so that it can
provide an innovative approach for the development of the business market. The report focuses on
the development of a smart mirror that can be used to choose between cosmetics. Customers can
use the smart mirror to ensure that proper and suitable cosmetics are purchased so that they can
satisfy their needs and demands. The uniqueness of the smart mirror is that it can help in the
development of the sustainability factors and adhere to the new technologies that exist in the
market. The organisation in focus is the Australia Beauty Clinic.
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2. Identification of the innovation
Without innovation and sustainability, organisations cannot hope to witness growth in the
competitive market. Hence, it is necessary that every organisation develop certain products that can
assist in its growth and provide the required support necessary for financial expansion of the
business. In this regard, it can be said that the idea developed by Australia Beauty Clinic can help in
maintaining the uniqueness in its business. The adoption of the smart mirror can assist Australia
Beauty Clinic to attract customers that have a high sense of fashion. The benefit of this smart mirror
is that it can help customers to choose between various cosmetics without having to apply any of the
materials to judge its qualities. Hence, it can be said that Australia Beauty Clinic aims at the
satisfaction of the customers so that they can get the best treatment of their skins.
With the application of the new idea, Australia Beauty Clinic can indulge in continuous
development. However, it needs to identify the constraints that may exist in the business and the
manner in which it can be mitigated. Therefore, one of the constraints that can be identified is the
fact that the application of technical software is more in the development of the product. The smart
mirror uses artificial intelligence programme so that it can process the requirements of the customers
and suggest cosmetics that may suit the needs of the people. At the same time, the smart mirror can
suggest products to the customers by analysing the make-up already worn so that similar products
with different features can be suggested. This can help the customers to remain loyal to the product
they use along with the company that manufactures the products. Another advantage that the smart
mirror can provide is the fact that it can innovate the products continuously. For example, the smart
mirror can provide customers with an option to compare between similar products of two companies
based on its prices and features. Therefore, the smart mirror used in Australia Beauty Clinic can help
the customers choose from the products manufactured by the company or the products adopted
from other business markets.
Innovation and Business Development
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3. Evaluating business models
Key Partners
 Investors
 Advertisers
Key Activities
 Purchase of
raw materials
 Consumer
service
through the
identification
of the needs of
the customers
Value
Propositions
 Competitive
pricing
 Various choice
of cosmetics
 Broad range of
promotions to
attain customer
attention
Consumer
Relationships
 Identification and
the segmentation
of the customers
 Consumer
satisfaction
 Personalisation
Key Resources
 Brand
 Ensuring
product
availability in
the market
Channels
 Websites
Consumer
Segments
 Massive market for
fashionable people
 Beauty salons
 Households
Cost Structures
 Purchase of artificial intelligence
 Advertising and marketing
 Salaries
Revenue Streams
 Contribution from the customers
 Promotion of the product
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4. Part 1 Problem
The biggest problem that may be faced by Australia Beauty Clinic is the fact that it needs to convince
the customers about the product in the market. It has been seen that most of the times; customers
remain sceptic about a new product and tend not to use it (Dawes & Nenycz-Thiel, 2014). This can be
related particularly to the use of technology which customers find it quite tricky. Therefore, it can be
said that convincing customers about purchasing the innovative product can act as a challenge for
Australia Beauty Clinic. It is the duty of the managers of Australia Beauty Clinic to convince the people
about the product. Therefore, it is necessary that the company maintain a target customer base so
that it can gain profit and promote the use of smart mirror for fashionable purpose. The reputation of
Australia Beauty Clinic has taken a huge dip in the market and the introduction of the smart mirror
can help it to restore its reputation.
At the same time, certain problems can be mitigated with the application of the smart mirror.
The fact that the customers can apply the make-up without having to apply it on the skin can help it
to remain competitive in the business. Every customer can test the components and whether it suites
the skin tone and the complexion. Based on this analysis, the application of the make-ups can be
done and the customers can even choose from a wide range of selected methods. This is can be
considered as one advantage that the smart mirrors can provide however, it may also be a problem,
as most customers prefer to judge such items by its physical evidence.
Therefore, it can be said that Australia Beauty Clinic, can adopt the disruptive innovation
technique so that it can transform the working and functioning of the company in a proper manner.
The adoption of artificial intelligence in the product can be costly for the company. This is mainly
because such application requires excessive and high-tech software status so that it can maintain its
dominance. The cost of the technologies can be excessive particularly for small-scale business such as
that of Australia Beauty Clinic. Therefore, this can be considered as another factor that may create
problem with the use of the innovative process. Hence, it is necessary that Australia Beauty Clinic
develop the necessary tactics required for the adoption of the business model.
Hence, after the analysis of the issues it can be said that Australia Beauty Clinic need to
identify suitable methods that can help it to mitigate the issues that exist in the company and with
the implementation of the product. Therefore, it is necessary that the company develop proper
promotional strategies so that it can ensure that the customers remain aware of the smart mirror.
The risk factors involved need to be considered so that the company can align its product in the
market with that of the objectives. Australia Beauty Clinic need to ensure that the managerial skills of
the company need to be maintained so that it can use the technical expertise required for the
development of the product.
Innovation and Business Development
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5. Part 2 Benefits
After the analysis of the potential problems, certain benefits can be identified that may help in the
development of the product and its popularity among the people. For example, it can be said that the
introduction of artificial intelligence can help in the rapid progress of the technical factors of Australia
Beauty Clinic. The enhancing of the product can be done with the help of the artificial intelligence
thereby allowing it to identify the needs of the customers. As stated earlier, the artificial intelligence
can help in identifying the preferred brand of the customers by identifying the brand they use.
Therefore, the loyalty of the customers can be kept intact and consistent based on the use and
applicability of the product. At the same time, proper development of Australia Beauty Clinic can take
place with the application of the smart mirror. This is mainly because the company have lost its
position in the market to competitors such as Shine Beauty and the application of the smart mirror
can help it to regain its lost stature in the business market.
Therefore, it can be said that it is essential for Australia Beauty Clinic to analyse the possible
constraints that may befall the organisation while implementing the smart mirror. The application of
the smart mirror can be used like a smart phone and therefore, it needs to be kept in mind technically
competent companies such as Apple does not incorporate the idea into its own mobile. This can be a
huge loss of customers for the salon, as people can purchase the phones and use the make-up by
sitting at their residential places.
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6. Part 3 Strategic response
Based on the analysis of the benefits and problems it can be said that Australia Beauty Clinic
need to undertake a strategic response that help in the development of the organisation as well as
the smart mirror. A SWOT analysis can be made so that the capabilities and prospect of the
application of the smart mirror can be understood.
Strength
 Smart product
 Assists in choosing the varieties of
cosmetics
Weakness
 Larger size
 Financial instability
Opportunity
 Provide scope of conducting effective make-
up
 Can become a household application in the
future
Threat
 Can be replicated
 Lack of proper promotional platform
Table 1: SWOT Analysis
(Source: Created by author)
One such strategic response that can be adopted by the company to mitigate the threat of the
product is the size of the mirror. In the modern world, it can be difficult for most companies to
incorporate products that are of large size mainly due to the financial spending required for
manufacturing. Therefore, it can be said that the financial condition of Australia Beauty Clinic need to
be the strategic focus of the company. At the same time, the threat based on the replication of the
product from competitors and technical industries can be a strategic development that Australia
Beauty Clinic needs to undertake.
Innovation and Business Development
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7. Part 4 Project options analysis
Pr
oje
ct
op
tio
n
1:
Do
No
thi
ng
P
r
o
j
e
c
t
o
p
ti
o
n
2
:
D
o
N
o
t
h
i
n
g
Analysis
Period
(years)
Ye
ar
1
Y
e
a
r
2
Capital Costs
($m)
$0 $
0
Output Costs
($m)
$1
00
$
1
0
0
Present
Value of
Benefits ($m)
$5
0
$
8
0
Present
Value of
Costs ($m)
$4
5
$
9
0
Benefit Cost
Ratio
3:2 4
:
5
Net Present $7 $
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Value ($m) 8 1
0
0
Intangible
costs /
benefits
(e.g. small,
med., large)
$1
0
$
1
0
Distributional
impacts
(e.g. small,
med., large)
$4
0
$
6
0
…
Preferred
option
Innovation and Business Development
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8. Part 5: Deliverability of recommended solution
Therefore, certain recommendations need to be made so that the smart mirror can be developed in a
proper manner. Australia Beauty Clinic needs to understand the feasibility of the product so that the
value proposition can be understood. The steps required for the continuous innovation of the
products can be enhanced and most importantly, it is necessary that the size of the mirrors be used.
This can help in cutting down the cost of excessive technical tools. The reduced price can be used for
further development of the smart mirror by using suitable promotional means to attract the
customers. At the same time, it is also necessary to ensure that a proper distribution channel is
maintained so that it can reach the customers.
Social media can be used for the promotion of the product, however, in order to deliver the product
from one place to another it is necessary that Australia Beauty Clinic use direct business to customer
framework. This can help the company to continue with the interaction with the customers so that it
can incorporate any changes that exist in the business market. The delivery can be in the form of
business-to-business framework wherein, the purchase of the smart mirror can be made from stores
that manufacture innovative products. Therefore, this can help Australia Beauty Clinic to continue
with its success in the business.
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9. Conclusion
Conclusion can be made based on the analysis of the proposition of the business and the manner in
which Australia Beauty Clinic can apply the smart mirror. The innovative product can help in
addressing the need of the customers and move a step closer to attain digitalisation in the fashion
industry. The suggested changes can help Australia Beauty Clinic to maintain its dominance in the
business.
Innovation and Business Development
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