Innovation & Business Development: Strategic Options for Real Estate

This report investigates the problem of inefficiency and hassle in the Australian real estate market, specifically for individuals buying or selling property. It highlights the need for innovative solutions to address these issues, noting that current conventional methods often lead to dissatisfaction. The report then explores the potential benefits of introducing an innovative platform like 'sellanyhouse' to the Australian market, drawing on its success in Dubai. It details the potential benefits for individual sellers, the broader real estate industry, and the Australian government. Strategic options for market entry and sustainability are analyzed, including research and development, marketing strategies, legal compliance, and human resource management. The report also considers project options, stakeholder identification, social, environmental, and economic impacts, financial analysis, and risk comparison. It concludes with an assessment of the deliverability of the recommended solution, emphasizing commercial, financial, management, and delivery aspects.

Running head: INNOVATION AND BUSINESS DEVELOPMENT
Innovation and Business Development
Name of Student
Name of University
Author Note

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

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4.5 Economic impacts............................................................................................................8
4.6 Overall evaluation of socio-economic and environmental impacts.................................8
4.7 Financial Analysis............................................................................................................9
4.8 Risk Comparison............................................................................................................10
4.9 Integrated analysis and options ranking.........................................................................10
Part 5: Deliverability of recommended solution......................................................................11
5.1 Details of recommended solution...................................................................................11
5.2 Commercial and financial..............................................................................................11
5.3 Management...................................................................................................................11
5.4 Delivery..........................................................................................................................11
Reference list............................................................................................................................13
Appendix A: Benefit Management Plan..................................................................................15
Appendix B: Financial Data Representation............................................................................16
Appendix C: Sign off Check list..............................................................................................17

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Part 1: Problem
1.1 Background of the problem
Most of the population of Australia face major troubles while buying or selling any
house. They have to face hassles of endless visits to the sites, a long period of uncertainty
along with over-promising agents who will eventually not deliver what they have promised to
the consumers earlier (Winson-Geideman and Krause 2016). In this situation, it can be
understood that the buyers need a permanent solution to this as the real estate business in
Dubai has started blooming in the last few years (Adnan et al. 2017). The buyers will require
a permanent alternative in order to deal with such harassments they have to face while buying
a house.
1.2 Definition of the problem
Presently it is a huge challenge that mostly a large population in Australia faces issues
with buying and selling house as they always need to go for human agents who tend to
disappoint them in most of the cases (Gloet and Samson 2017). Even if they settle on one
house, they have to wait for a long time with uncertainty as they might not get the bid.
Especially selling a house in Australia is now a huge problem for regular individuals as the
entire process in complicated and lengthy (Wong 2017). Starting from making a reasonable
price for the house to dealing with numbers of customers who will end up wasting their time
and not buy it, individuals have to deal with numerous numbers of issues while selling a
house.
1.3 Evidence of the problem
It can be observed that individuals who are trying to sell a house have started looking for
alternative options that can help them in selling their houses without any unnecessary

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harassment (Mani et al. 2015). In addition to that, it is also noteworthy to mention that people
who are taking assistance from the conventional mediators in selling their houses are not
found to be very happy with their experience as well.
1.4 Timing Considerations
Therefore it can be said that if measures are to be taken to make the entire house selling
jobs easier, a major change is needed in this scenario (Wong and Wakefield 2017). There can
be ideas that are transparent and innovative for both the buyers and sellers which can make
the entire process much easier (Gallagher, Ignatieva and McCulloch 2015). This can simplify
the entire procedure for the buyers and they will not have to spend additional time while
selling their houses.
1.5 Consideration of the broader context
There are numbers of organizations within the market place who offer being a helpful and
transparent mediator for selling houses and communicating with the potential buyers (Cerutti,
Dagher and Dell'Ariccia 2017). However in the Australian market, there are no such
organizations that will provide an easy and less complicated selling process for the customers
(Haynes, Nunnington and Eccles 2017). It can be indicated that this may be helpful for the
business to expand in the Australian market as they can operate without any major
competitors (Jordà, Schularick and Taylor 2016).
Part 2: Benefits
Technological advancement have uplifted almost every business sector, real estate
industry is no such exception. There have been major innovations that have bloomed in this
Industry and it has helped the customers in different contexts (Rubin, Aas and Stead 2015).
However selling a house is still difficult without any human mediator taking a long time.
With the innovative idea of sellanyhouse the sellers of Australian real estate market will get

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revolutionary benefits for individual usage and at the same time the entire real estate industry
can be benefited from these innovations (Rogers 2016). Therefore this study has focused on
the innovative idea of sellanyhouse. It can also be said that this idea will enhance the
contemporary real estate industry business in the broader context as well.
2.1 Benefits to be delivered
The innovative idea of selanyhouse benefits both the individual sellers and the overall
real estate industry in Australia. It can be found out that individuals are interested in selling
their present houses and buying something new in the recent time in Australia. However this
is not any new trend for the real estate industry. A major feature of sellanyhouse is that they
evaluate the property and helps the sellers to find potential buyers within no time. It can be
considered as the fastest and easiest way for selling any property. There are three major steps
in the entire process. Firstly the seller will get a free valuation of his property and then he or
she will book an appointment on this site for free as well. As soon as these two steps are done
the sellers will start getting offers for their property. Therefore this organisation will help the
sellers to get the maximum value of their properties and sell it without any unnecessary
harassment.
2.2 Importance of benefits to government
Sellanyhouse provides innovative and well-designed possibilities to the customers
that can be adjusted according to their needs as well. Bringing this innovative idea into the
Australian real estate market can also bring remarkable changes within the industry itself.
The innovations can be largely beneficial to the Australian government as there might be a lot
of economic benefits to the government as well (Hulse et al. 2018).

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2.3 Evidence of benefit delivery
With its innovative ideas and transparent selling process sell any house not only
brings remarkable changes to the individual sellers but it also benefits the entire real estate
industry to a great extent. The industry will be extremely blessed with this innovation as it
will help to eliminate the difficulties faced by individual sellers and make the process much
easier. This organisation can also reach to the individual sellers operating in the industry as
there is a huge possibility of selling one’s house at its most value and without any potential
hassles.
2.4 Interdependence
There are some interdependent features about developing this new and innovative
idea within the Australian real estate industry. For instance it can be said making this project
successful is closely related to Australian government providing necessary resource and
support (Robertson and Rogers 2017). It can also be said that this idea will only mature with
a skilled work force and financial support from various sources.
Part 3: Strategic Response
It can be seen from the business operations of sellanyhouse in its mother country
Dubai that the organization has received massive responses from the general sellers and
buyers in the real estate sector. The innovations in the idea of sellanyhouse are not only
beneficial for the buyers, but it has also benefitted the sellers who are to buy a new property
within a specific budget. At the same time, it also reduces pointless disturbance from the
entire buying and selling process of any property. With the technological advancements, the
official website of sellanyhouse can bring the potential buyers and sellers at the same place to
offer a great bid for both the parties.

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3.1 Method and Criteria
The management of the organization will continue their research in the industry so
that they can update the features of their website and other business operations in order to
sustain their business in the Australian market (Gauder, Houssard and Orsmond 2014). They
will also recruit a separate research and development team who will keep the management
updated regarding the contemporary trends, changes and the customers’ buying behaviour so
that they can eventually serve the best service in the market.
3.2 Strategic options analysis
 The managers or supervisors of the organization should intervene in the research
operations time to time for assuring that the entire process is progressing in
accordance with the pre-planned strategies.
 The supervisors of the marketing team should always intervene in the marketing
operations of the company as it requires vigorous marketing in order to enter a
completely new market. Therefore they should also ensure that the marketing plan has
been aligned with the need of the customers as well.
 The legal guidelines should always be maintained under any circumstances in order to
avoid any legal burden on the organization.
 The company needs a skilled set of human resource for its operations; therefore the
human resource managers should recruit people who can enhance the all over
productivity of the organization.
3.3 Recommended strategic options
Other than the previously mentioned strategic options, the organization can also adapt
some other options as well:

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 The company should approach the Australian government for providing adequate
financial aid.
 The company can also partner with small mediator companies as well.
 The director of the organization can intervene at any time at any level.
Part 4: Project options analysis
4.1 Project options considered
 The supervisors and managers of Sellanyhouse will always intervene in the operations
of research and development team in order to assure that there are progress in the
entire process and it is going as it has been planned previously.
 The marketing managers of the organizations will always mediate the marketing
operations of the organization as it is entering a completely new market. Therefore
marketing plan should also be personalized and customized according to the specific
needs of the consumers.
 The legal rules and regulations should be maintained so that any legal burden can be
avoided.
 A expert set of human resource should be recruited who will help the company to
enhance its overall productivity.
 The company should also ensure that they have a well-designed CSR policy.
4.2 Stakeholder identification and consultation
The primary stakeholders of the company are investors and the government of
Australia. The buyers of the second-hand properties and the sellers who want to avoid the
unnecessary troubles are the most important stakeholders who will be directly benefitted from
the company.

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4.3 Social impacts
This project will be helpful in enhancing the business of real estate industry of
Australia which will help to boost their economy and provide jobs to numbers of skilled
candidates.
4.4 Environmental impacts
 This project will not harm the environment in any way as it utilizes the technological
advancements to act as a technical mediator for selling houses.
 It will use eco-friendly technologies for its operational purposes.
4.5 Economic impacts
 This project will be highly advantageous for the Australian economy as it will
contribute in generating large amount of revenues from the real estate industry.
 It will also create competition in the existing market; therefore it can have a positive
influence in boosting economy.
4.6 Overall evaluation of socio-economic and environmental impacts
Considering the previously mentioned aspects, it can definitely be said that the
sellanyhouse project will have an overall positive impact.

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4.7 Financial Analysis
Option 1:
Saturday, May 26, 2018
Key Assumptions:
Public Sector Discount Rate 2011 8.00%
Appraisal period (years) 3 years
Summary of the Results of the Analysis:
Capital Costs $0
Whole of Life Costs $225,000
Present Value of Benefits $622,402
Present Value of Costs $186,721
Benefit Cost Ratio 3.33
Net Present Value $435,681
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 50000 50000 50000 50000 50000
Benefit 2 50000 50000 50000 50000 50000
Benefit 3 50000 50000 50000 50000 50000
Total Benefits (mid-year) $150,000 $150,000 $150,000 $150,000 $150,000
Present Value of Benefits (mid-yr) $144,338 $133,646 $123,746 $114,580 $106,092
Present Value of Benefits $622,402
Cost 1 -$15,000 -$15,000 -$15,000 -$15,000 -$15,000
Cost 2 -$15,000 -$15,000 -$15,000 -$15,000 -$15,000
Cost 3 -$15,000 -$15,000 -$15,000 -$15,000 -$15,000
Total Costs (mid-year) -$45,000 -$45,000 -$45,000 -$45,000 -$45,000
Capital Costs (at start of year) $0 $0 $0 $0 $0
Total Costs -$45,000 -$45,000 -$45,000 -$45,000 -$45,000
Total Capital Costs $0
Total Whole of Life Costs -$225,000
Present Value of Costs (mid-year) -$43,301 -$40,094 -$37,124 -$34,374 -$31,828
Present Value of Costs (start year) $0 $0 $0 $0 $0
Present Value of Costs (by year) -$43,301 -$40,094 -$37,124 -$34,374 -$31,828
Present Value of Costs -$186,721
Net Cash Flows $105,000 $105,000 $105,000 $105,000 $105,000
Net Present Value (by year) $101,036 $93,552 $86,622 $80,206 $74,265
Cumulative NPV $101,036 $194,588 $281,211 $361,417 $435,681
Chart data only:
Year 0 1 2 3 4
Present Value of Benefits ($million) 0.144$ 0.134$ 0.124$ 0.115$ 0.106$
Present Value of Costs ($million) 0.043-$ 0.040-$ 0.037-$ 0.034-$ 0.032-$
Cumulative Net Present Value ($million) 0.101$ 0.195$ 0.281$ 0.361$ 0.436$

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4.8 Risk Comparison
Risk Management
Financial risks Proper management planning is required for
mitigating the risks.
Risk for personal information theft Data should always be encrypted only
between the management and users.
4.9 Integrated analysis and options ranking
1 2 3 4 5
-$1
$0
$1 Cost Benefit Analysis
Present Value of Benefits ($million)
Present Value of Costs ($million)
Cumulative Net Present Value ($million)
Year
Todays Dollars ($ millions)