Business Idea Analysis Report: Smart Home Automation Devices - BUS101

This report presents a comprehensive analysis of a business idea centered on smart home automation through wireless devices. It begins by identifying the customer problem of the need for automation in various home devices and proposes solutions to improve the quality of life by integrating wireless devices. The report details the benefits of this innovation, including improved accessibility, efficient work management, and increased ecosystem development. The core of the analysis is the business model canvas, which outlines key partners, activities, resources, value propositions, customer relationships, channels, customer segments, cost structures, and revenue streams. The interrelationships between these components are discussed, along with critical success factors, risks, and assumptions. The report then evaluates the overall feasibility of the idea, considering financial and human resources, before concluding that the business idea is feasible and can positively affect the daily lives of consumers. The report is supported by several references, including the business model canvas as an appendix, and it discusses how the proposed business model can facilitate the development and implementation of the idea, emphasizing the connection with customers and the importance of financial and human resources for success.

Running head: BUSINESS IDEA ANALYSIS
BUSINESS IDEA ANALYSIS
Name of the Student
Name of the University
Author Note

1BUSINESS IDEA ANALYSIS
Table of Contents
Introduction....................................................................................................................2
Explanation of customer problem that has to be solved................................................2
Benefits to be generated by the idea..............................................................................3
Discussion of proposed business model.........................................................................3
Identification and discussion of key interrelationships in business model....................4
Critical success factors to be managed...........................................................................4
Identification of critical risks and assumptions..............................................................5
Evaluation of overall feasibility of idea.........................................................................5
Conclusion......................................................................................................................6
References......................................................................................................................7
Appendix........................................................................................................................9

2BUSINESS IDEA ANALYSIS
Introduction
Business model canvas can be defined as a strategic management and lean start-up
template that helps in the growth of new business models or documentation of the existing
business models a well. This is considered to be a visual chart that provides different
elements which describe the value proposition, customers, infrastructure and finances of the
firm as well. The activities of the firm are aligned in order to gain potential trade-offs.
Business model canvas was proposed initially by Alexander Osterwalder based on the work
that was earlier done by him based on ontology of business models (Antikainen & Valkokari,
2016).
The report will be based on the new innovation or business idea that will be proposed
for the purpose of solving automation based issues faced by the customers. The wireless
devices that will be offered by the business will be able to provide support in development of
smart homes. The business model canvas of the firm will also be depicted in the analysis that
will be made in the report.
Explanation of customer problem that has to be solved
A major issue that is currently faced by the customers or individuals is mainly based
on the requirement of automation in various devices that are used by them in their homes.
The sensors will be able to play a main part in managing the activities that are performed by
them and keeping check on the various equipments that are used by them as well. The
support that is offered by the devices is considered to be an important part of the ways by
which complexity can be reduced (Dijkman et al., 2015). The reduction of complexity in
different activities is considered to be a major factor that is able to influence the customers
and fulfil their needs as well. The demands and needs of the community will be fulfilled in an
effective way with the help of automated products that are offered by Loora Tooth.

3BUSINESS IDEA ANALYSIS
Benefits to be generated by the idea
The idea based on usage of wireless devices for improvement of the quality of life of
the individuals or customers is considered to be a vital aspect related to the usage of the
products (Dudin et al., 2015). The different benefits that are offered to the customers with the
help of usage of the wireless devices are as follows,
The accessibility and usage of different products in the houses is improved due
to the integration of wireless devices. The individuals are able to manage their
work in an effective manner with the support that is provided by the platform
of wireless connectivity (Haaker et al., 2017).
The ecosystem that is developed with the help of wireless sensors is
considered to be a vital aspect related to proper growth of the work process of
individuals or the consumers as well.
The complexity levels in different areas of the work process will be increased
with the support that is provided by usage of the wireless devices. The
consumers will be able to maintain their daily lives with the support that is
provided by the accessibility of wireless devices (Joyce & Paquin, 2016).
Discussion of proposed business model
Key Partners
 Employees
or
resourceful
team.
 Suppliers of
the
technologie
s.
Key Activities
 Promotional
activities.
 Growth
gained by the
operative
teams
(Dijkman et
al., 2015).
Value Proposition
 Providing
satisfaction
to the
customers.
 Improving
daily lives of
customers.
Customer
Relationships
 Communica
tion
through
social
media.
 Improveme
nt of
connection
with
customers.
Customer
Segments
 Individuals
who need to
manage
their daily
lives
(Antikainen
&
Valkokari,
2016).

4BUSINESS IDEA ANALYSIS
Key Resources
 Levels of
accessibility
of
technologies.
 Development
of the simple
processes
(Haaker et
al., 2017).
Channels
 Suppliers of
the
products.
 Website of
the firm.
Cost Structure
 Costs based on development of proper promotional
events.
 Costs based on increasing the awareness of products
(Ladd, 2018).
Revenue Streams
 Sales of the products.
 Formation of the proper partnerships
(Joyce & Paquin, 2016).
Identification and discussion of key interrelationships in business model
The nine building blocks of business model canvas are interconnected with each other
according to the impact that they have on the organization itself. The partners of the firm that
include providers of wireless devices are able to play a main part in development of
appropriate levels of revenues. The passionate team and staff of the firm is considered to be a
significant aspect related to achievement that can be gained (Keane, Cormican & Sheahan,
2018). The channels and suppliers of Lo-Ra Tooth can have an impact on the methods by
which products can reach the consumers. Revenue streams of Lo-Ra Tooth are mainly
influenced by the customers of the firm and the products that are offered to them as well.
Fulfilling the demands and needs of customers is considered to be an important aspect based
on improvement of product sales (Ladd, 2018).
Critical success factors to be managed
The solutions that are being provided by Lo-Ra Tooth based on the proper automation
of various aspect and services are considered to be a key aspect that can lead to the

5BUSINESS IDEA ANALYSIS
achievement of the firm. The requirement of automation of various activities that are
performed by the firms has an impact on the success of the business idea (Lüdeke-Freund &
Dembek, 2017). Uniqueness of the products is also able to play a key part in appropriate
growth of position and revenues of the firm as well. The major activities that are thereby
performed by the firm are mainly based on the growth of an active network and awareness
based on the products as well. The promotional activities can increase awareness related to
the products that are offered to the customers and the benefits that can be gained by them as
well (Ojasalo & Ojasalo, 2015).
Identification of critical risks and assumptions
The main threats that can be faced by the firm are related to the high level investments
that have to be made for the development and promotion of the products as well. The
advertisements and promotional events will also be able to play a key part in developing
effective levels of responsiveness based on benefits offered by the products. The products
will also be able to fulfil the demands and requirements of consumers with respect to the
improvement of automation levels in their daily lives (Ojasalo & Ojasalo, 2016). The lack of
knowledge related to proper usage of the products can also have a negative impact on the
sales of the firm and profits that are gained as well. The low levels of training provided to
employees can also affect the ways by which an organization like Lo-Ra Tooth can maintain
its position in the industry (Onken & Campeau, 2016).
Evaluation of overall feasibility of idea
The idea related to usage of wireless devices for the purpose of improving the levels
of automation is considered to be feasible for the business and its future operations as well.
The feasibility of the idea can be analysed with the help of proper analysis of financial and
human resources that are used by the business (Ojasalo & Ojasalo, 2016).

6BUSINESS IDEA ANALYSIS
Financial resources – The financial resources are considered to be the most
important aspect that are helpful in development and implementation of the business idea.
The idea can be developed with the support that is provided by the investments that are made
as a part of the business process. The business idea of the usage of wireless devices will
require high levels of investments and the financial resources in order to improve the daily
lives of the consumers or individuals (Sort & Nielsen, 2018).
Human resources – The employees or human resources of the firm have an impact on
the ways by which different activities are performed within the organization. The proper
development of human resources is able to play a key part in effective implementation of
diverse activities and parts of the business idea as well (Onken & Campeau, 2016).
The financial resources and human resources of the firm are able to play a major role
in the ways by which the firm is able to maintain its future processes in the industry. The
wireless devices will also be able to influence the daily lives of individuals or people in an
effective manner (Dudin et al., 2015).
Conclusion
The report can be settled by stating that the business idea of wireless devices can
affect the daily activities of the consumers in a major way. The business model of the firm
will also be able to support the development and proper implementation of the idea as well.
The benefits that are offered by the business idea are also considered to be an important part
of the ways by which the firm can maintain its profitable place in the industry. The
connection that is developed with customers is a key aspect that is supported by the financial
investments and the human resources of the firm as well.

7BUSINESS IDEA ANALYSIS
References
Antikainen, M., & Valkokari, K. (2016). A framework for sustainable circular business
model innovation. Technology Innovation Management Review, 6(7).
Dijkman, R. M., Sprenkels, B., Peeters, T., & Janssen, A. (2015). Business models for the
Internet of Things. International Journal of Information Management, 35(6), 672-
678.
Dudin, M., Kucuri, G., Fedorova, I., Dzusova, S., & Namitulina, A. (2015). The innovative
business model canvas in the system of effective budgeting. Asian Social
Science, 11(7), 290-296.
Haaker, T., Bouwman, H., Janssen, W., & de Reuver, M. (2017). Business model stress
testing: A practical approach to test the robustness of a business model. Futures, 89,
14-25.
Joyce, A., & Paquin, R. L. (2016). The triple layered business model canvas: A tool to design
more sustainable business models. Journal of Cleaner Production, 135, 1474-1486.
Keane, S. F., Cormican, K. T., & Sheahan, J. N. (2018). Comparing how entrepreneurs and
managers represent the elements of the business model canvas. Journal of Business
Venturing Insights, 9, 65-74.
Ladd, T. (2018). Does the business model canvas drive venture success?. Journal of
Research in Marketing and Entrepreneurship, 20(1), 57-69.
Lüdeke-Freund, F., & Dembek, K. (2017). Sustainable business model research and practice:
Emerging field or passing fancy?. Journal of Cleaner Production, 168, 1668-1678.

8BUSINESS IDEA ANALYSIS
Ojasalo, J., & Ojasalo, K. (2015, June). Service logic business model canvas: implications for
service business. In Proceedings of the QUIS14 Quality in Service Conference (pp.
18-21).
Ojasalo, J., & Ojasalo, K. (2016). Service logic business model canvas for lean development
of SMEs and start-ups. In Handbook of Research on Entrepreneurship in the
Contemporary Knowledge-Based Global Economy (pp. 217-243). IGI Global.
Onken, M., & Campeau, D. (2016). Lean startups: Using the business model canvas. Journal
of Case Studies, 34(1), 95-101.
Sort, J. C., & Nielsen, C. (2018). Using the business model canvas to improve investment
processes. Journal of Research in Marketing and Entrepreneurship, 20(1), 10-33.

9BUSINESS IDEA ANALYSIS
Appendix
Key Partners
 Employees
or
resourceful
team.
 Suppliers of
the
technologie
s.
Key Activities
 Promotional
activities.
 Growth
gained by the
operative
teams.
Value Proposition
 Providing
satisfaction
to the
customers.
 Improving
daily lives of
customers.
Customer
Relationships
 Communica
tion
through
social
media.
 Improveme
nt of
connection
with
customers.
Customer
Segments
 Individuals
who need to
manage
their daily
lives.
Key Resources
 Levels of
accessibility
of
technologies.
 Development
of the simple
processes.
Channels
 Suppliers of
the
products.
 Website of
the firm.
Cost Structure
 Costs based on development of proper promotional
events.
 Costs based on increasing the awareness of
products.
Revenue Streams
 Sales of the products.
 Formation of the proper partnerships.