MGMT20143 (HT2, 2018) Business Idea Generation Project

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MGMT20143 (HT2, 2018) THINK BIG
Assessment 2
Idea Generation
Name of Student:
Student ID:
Tutor’s name:
Campus: Melbourne
Due Date:
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Executive Summary
In this study, there will be dicussion about the market problem that is of paying the bills at the
time. This facility will solve the major market problem because consumer can postpone their
bills but not their entertainment. This idea of buy now and pay later feature will get the attraction
of the large customer base. As this is very innovative idea where the mobile pay wallet can be
used.. This idea have the capability to rule the market, initially the company need to attract the
attention of the market with various offers and scheme. The company will able to collect large
revenue once then entered in the market because customer will definitely try this new idea.
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Contents
Executive Summary.........................................................................................................................2
1. Introduction..............................................................................................................................3
2. Market Problem........................................................................................................................3
3. Benefits of the idea to solve the problem.................................................................................3
4. Business Model........................................................................................................................5
 Key partners:.........................................................................................................................5
 Key activities:.......................................................................................................................5
 Key resources:......................................................................................................................5
 Value Proposition:................................................................................................................5
 Customer relationships:........................................................................................................6
 Channels:..............................................................................................................................6
 Customer segments:..............................................................................................................6
 Cost Structures:.....................................................................................................................6
 Revenue Streams:.................................................................................................................6
5. Interrelationship........................................................................................................................6
6. Critical success factor of the Business Idea.............................................................................7
 Identification of critical risks and assumptions....................................................................7
 Evaluation of the overall feasibility of the idea....................................................................7
Conclusion:......................................................................................................................................8
References:......................................................................................................................................9
Appendix 1:...................................................................................................................................10
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1. Introduction
In this assignment, there will be a discussion about the business canvas model with the
associated risk, challenges and opportunities will also be discussed. The effectiveness of the
market problem which is needed to solved as early as possible in order to accomplish the
objectives of an organisation will also be covered in this assignment. Now, a company can
provides the facility of making the online payment (Mobile money wallet) on various popular
applications and websites. This special feature can fascinate the customers because now
customers can make the payment 15 days to the company. The company will accomplishing its
objective and become successful in fascinating millions of users across the nation. Australian
financial technology that operates in the United States, New Zealand, Australia, etc. will be
suitable for this innovation, it will give the new face to the e-commerce industry.
2. Market Problem
After many years of relentless growth in the retail sector in enlarging their physical space, the e-
commerce entered in the market and gives the lot more capacity and opportunities to the retail
trader for improving their overall sales efficiency. However, customers encounter the problem of
scarce resources for the time. General living cost for the countries has shown the rise and
spending by the end buyers have become inevitable. Many financial institutes are already
providing the facility to consumers like credit cards or loans. The consumer can avail this facility
on consumer durable loans, Home loans, car loans, etc. Now, the companies can also takes one
step forward in this market, they provide the facility to the consumer for paying later and they
can book a movie show, order food online, buy clothes, etc. Like this way, the company is able
to understand and solve the consumer problem. Now, the consumer can avail the benefit of
paying later even on entertainment and online shopping websites (Kim, et. al., 2017).
3. Benefits of the idea to solve the problem
The major gain of these innovative ideas is that buy now and pay later feature will dominte the
market of Australia, United States, New Zealand, etc. End user or consumers are gaining the
following benefit of this feature (Kumar and Gilovich, 2016).
 The consumer will have the options to enjoy the product or service now and pay later.
 All the transactions will be fraud protected and ensure the compliance policy.
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 The consumer can enjoy the ATG system platform of the company.
 From Reward or cashback programmes consumer can avail discounts.
 The consumer can make the payments even before the due dates.
 Identification and activation require OTP for every transaction that ensures the high-
security parameters.
 Special offers on the birthdays and anniversary.
 Customer care service desk is always present to assist the consumers.
These are the benefits that consumer can avail as per their own convenience. The company can
plan to innovative new features that will also give benefit to the consumer in enormous ways. All
the transactions require the OTP (from the registered mobile or email address) that ensures the
high-security measures (Medoff, et. al., 2016).
4. Business Model
The business model of the company:
 Key partners:
The key partners for such innovative company will be application developers, website
developers, banking institutes and software management team. key partners are the network
channel or suppliers which make the business model effective.
 Key activities:
Key activilties of the business idea will be providng credit at the zero interst rates and at zero
interse ffes. Key activites are the core activites of the buisiness model. It specifies the aim of the
business.
 Key resources:
The key resources for the business idea will be IT infrastructure, R&D investments and human
resources. Key resources defines the assets of the business model and are crucial for the
business.
 Value Proposition:
For retailers:
A. It connects with the customers.
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B. Provides the improve conversions
C. Increase customer loyalty and reduce purchase returns.
For consumers:
A. Make interest free purchase.
B. Secure transactions.
C. Existing offers.
 Customer relationships:
Customer relationships defines the proceudre and method throguh which the company maintain
the relation with their cusomers. Through the emails, and feedbacks company will kaintain the
customer relations (Pappas, et. al., 2017).
 Channels:
As of now, the company can use both online transaction methods and offline transactions
methods. In both channels, the consumer can avail easy EMI or pay later feature directly from
the mobile application (Sharma and W, 2015).
 Customer segments:
The business idea aims at targeting each and every sector however the youth will be more
attarcted with this business idea.
 Cost Structures:
The business ideas aims at investig advanced and high quality of techniques. The comalny will
invest ininnovative software. The cost struture will be 30% of revenues. Cost structure describes
the outflow of cash.
 Revenue Streams:
Revenue streams means the ways thorough whcih the company generates the profit.the business
idea will generate the profit through providing credits to the customer and through the
consultancy fees.
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Key Partners
 Mobile
applicatio
n
developer
s
 Website
Developer
Banking
institutes
Key Activities
 Providing
buy now,
pay later
method.
 0% interest
rate and 0%
processing
fee.
Value Proposition
For retailers:
 Customer
loyalty
 Reduction
in purchase
return
 Improves
orders
For customers:
 Opportunit
y to pay
later after
few weeks.
 Safe and
secure
transaction
s
Customer
Relationships
 Automated
approach
Customer
Segments
 Health
sector
 Governmen
t
 Retail e-
services
Key Resources
 Websites
and mobile
applications
 IT
infrastructur
e
Channels
 Online
 IVR
 Mobile
application
s
 Website
Cost Structure
 Minimising loses strategy.
 Efficiently management policies for loss
reduction and cost reduction.
Revenue Streams
 Such innovation idea will generate the great
revenue streams.
5. Interrelationship
The company can succors its customer in accomplishing their task of minimising their purchase
tension. As the company provides the facility of pay later with 0% interest charges. So, the
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tension of buyers reduces and their trust in the company also enhances because the company
offers them safe and secure transactions measurement. The main objective of the company is to
make long trust full relationship and to innovative various tactics that help the consumer in
managing their lifestyle (Kim, et. al., 2017).
6. Critical success factor of the Business Idea
The company accomplishes its initial objective of managing success in these segments:
Relationship segment:
The company can touch the heart of their users by offering them existing offers and pay later
transactions method. This step is helping them in building a great customer market in this
industry (Kumar and Gilovich, 2016).
Emerging technological success:
Due to the constant efforts of the management and IT department, the company can introduce the
latest technology by linking their payment methods with the popular application. Their IT
department also ensures the transaction safety measurements (Medoff, et. al., 2016).
 Identification of critical risks and assumptions.
Risk is involved in all the business. In case of such company (who can provide such medium),
their risk involvement issue is losing the larget customer segments, fail to provide adequate
security measures, the risk from the hackers, bugs create in the application, technology may get
old and outdated over the period of time. The company should work on these risk factors and
should carry their operations with a positive attitude. These risks parameters can also act as the
step stones for the company because if the company is getting fear after thinking that their
technology may get outdated? Because of this though, their management will work continuously
on making new and innovative technology (Mudijijah and Hakim, 2018).
 Evaluation of the overall feasibility of the idea.
This innovative idea is helping their company in accomplishing their final objectives that are
customer satisfaction, profit earning and capturing the market shares. According to the reports,
the company will shows the incredible increase in their revenue.. The objective is accomplishing
during the period of time and they are now working on increasing their market share by
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developing new ideas in the existing market or they can introduce their existing idea into the new
market. The company should also develop and reframe their strategies in order to give tough
competition to other companies. No doubt that their resource management is performing well but
they should introduce more theories which will improve their quality of assets. It will be great
for the company if they increase the ratio of their key partners. If they bring more investors and
partners in their business, they can minimise their financial problems and they purchase new
resources required for producing new innovative technology (Pappas, et. al., 2017).
Overall Feasibility of Data
Score(-5 to +5) Overall potential of the
Business Idea Based on
Each Part
Suggestions for improving
the Potential
Part 1
Changes in the behaviour of
the customers
Moderate The services should be
attractive and innovative so
that the business idea will
able to retain the customers.
Part 2
Industry development rate Moderate For improving the growth rate
the services should be of high
quality.
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Part 3
Familiarity of customer with
the services
High Advertisement should be
done for making customers
familier with the services.
Part 4
Proposed project meets the
goals
High Market research should done
for determination whether
project meets the goals or not.
Part 5
Performance of similar
businesses
Moderate For the long survival in the
competitive market company
should analyse the
performance of similar
companies.
Overall Feasibility Through the assessmet it has
been concluded that the
overall fesibility of the
buisness idea is high.
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Conclusion:
It has been concluded that the company will have a good customer base and they will show the
drastic improvement in their revenues. The company will ensures the safety of the transactions to
their customers with the fraud protection features. These promises able to bring the customer
trust and the company can increase their customer base. The major changes the company brings
is to introduce pay later features at the 0% interest and nil processing fee, available in both online
and offline stores. Their advertising department is also working well in advertising the features
of the company. However, according to the customer mindset when they hear about these gains
they automatically got fascinated. Apart from this it also has been concluded that the company
will have the support from their key partners. These key partners ensure that the IT department
and advertising departments are not facing issues in new developments due to a shortage of
funds. In the end, it can be said that new innovative ideas will make the company in
accomplishing their objectives as early as possible.
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References:
 Kim, Y., & Peterson, R. A. (2017). A Meta-analysis of Online Trust Relationships in E-
commerce. Journal of Interactive Marketing, 38, 44-54.
 Kumar, A., & Gilovich, T. (2016). To do or to have, now or later? The preferred
consumption profiles of material and experiential purchases. Journal of Consumer
Psychology, 26(2), 169-178.
 Medoff, N. J., & Kaye, B. (2016). Electronic media: then, now, and later. Taylor &
Francis.
 Mudjijah, S., & Hakim, A. (2018, December). TRAINING OF E-COMMERCE
IMPLEMENTATION AS ONLINE MEDIA SELLING TO GROUP OF BATIK
“ARIMBI” CRAFTSMAN AT KEDUNGKAMAL VILLAGE, GRABAG,
PURWOREJO. In ICCD (Vol. 1, No. 1, pp. 552-556).
 Pappas, I. O., Kourouthanassis, P. E., Giannakos, M. N., & Lekakos, G. (2017). The
interplay of online shopping motivations and experiential factors on personalized e-
commerce: A complexity theory approach. Telematics and Informatics, 34(5), 730-742.
 Sharma, G., & Lijuan, W. (2015). The effects of online service quality of e-commerce
Websites on user satisfaction. The Electronic Library, 33(3), 468-485.
 Tonnison, W., & Tonnison, J. I. (2017). U.S. Patent Application No. 15/666,690.
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