MGMT20143 (HT2, 2018) Think Big: Drone Delivery System Business Model

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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:
1

Executive summary
In this study there will be a discussion about the market or consumer problems that solved by the
innovative idea of the Drone Delivery System. This innovative idea will help the consumer as
well as business houses. From the point of view of the consumer they will get their product early,
they will not need to wait for unnecessarily 3-5 days. From the point of view of business houses
their delivery cost will be reduce as they will use the drone so they will not need the human
resource for the delivery of the products.
2

Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
Effective explanation of the customer/market problem that needs solving and/or the reason the
innovation is required..................................................................................................................5
The persuasive argument of the customer/client benefits to be generated by the idea................7
Discussion of the proposed business model................................................................................8
Identification and discussion of the key interrelationships in the BM that will support the
success of the idea.......................................................................................................................9
Critical success factors to be managed during the execution of the idea..................................10
Identification of critical risks and assumptions.........................................................................11
Evaluation of the overall feasibility of the idea.........................................................................12
Conclusion.....................................................................................................................................14
References......................................................................................................................................15
3

Introduction
The innovative concept of Drone Delivery System will provide significant strategies to grow the
business. In this study, there will be discussion about the new concept where the delivery houses
can use the drone technique for the delivery of the products. This will the profitable idea of
consumers as well business houses. However, there are some problem still attach with this, like
what if product lost due to storms or any theft? The business houses need to clear such problem
because for making this idea successful in the market, first business houses need to conduct
appropriate research and they need to decide their area where they can monitor the performance
of their drones. This idea will help the courier service market in making more efficient
performance and this will improve their operational efficiency also.
4

Effective explanation of the customer/market problem that needs solving and/or the reason
the innovation is required.
After many years of relentless growth in the retail sector in enlarging their physical space, the e-
commerce entered in the market and gave 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 (Kim, et. al., 2017).
Business Model
Key Partners
 shareholder
s
 Stockholder
s
 Investors
 Co-founders
Key Activities
 Logistics
 Examination
 Circulation
of produces
 Advertising
and
consumer
provision
 Multitude
tracking
Value
Proposition
Providing the
option of home
delivery for new
and existing
customers.
Maintaining good
dealings with the
mediators and
interconnection
for improved
development of
the industry.
Customer
Relationships
 Client Facility
 Producing
standardized
amenities and
building faith
 Gratitude and
standing brand
 Client
association
organization
Customer
Segments
Elements,
plasters,
unvarying
selling
pieces of
stuff and
many
additional
robust
harvests.
Key Resources
 Fresh
resources
and
possessions
 Scientific
trappings
Channels
 Website
 Distribution
Organization
Squad
 Logistic group
 Company
5

and
equipment
 A passable
quantity of
staff
 Progressive
conveyance
automobiles
 Operative
gratitude
and industry
with
clienteles
constructions and
workplaces.
Cost Structure
 Delivery cost.
 Equipment cost
 Human resource cost
 Trail cost
 Maintenance of the drone machines cost
Revenue Streams
 Spreading freights
 Amenities lodgings
 Assisting logistics amenities
 Actual instructions
6

The persuasive argument of the customer/client benefits to be generated by the idea.
The major gain of these innovative ideas is that their delivery features which cover 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 is getting effective delivery options.
 Delivery cost is minimum
 People can also work on a part-time basis.
 From Reward or cash back programmes consumer can avail discounts.
 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.
7

Discussion of the proposed business model
The Drone Delivery System is an innovative strategy which helps to determine and understand
the procedure of making the organization most popular in some significant ways. The innovative
strategy focuses on the marketing of the business. The Drone Delivery System is a platform on
which is the most popular and useful way of interaction nowadays. This can be used as a
component to achieve a large number of people to communicate. The business model proposed
for this strategy was to intend some ideas which help to mould and identify the key features of
using this strategy.
8

Identification and discussion of the key interrelationships in the BM that will support the
success of the idea
The business model provides some essential key elements to the success of the idea. As the
model involves some strategies which help to generate more significance to implement the idea.
 Optimization and budget of scale: The business model helps to determine and optimize
the budget of the organizational structure as it helps to analyse the overall organization
structure. The organization requires adapting the resources for organizational structure —
this help to determine the need for resources (Muro, & Turner, 2018).
 Decrease of hazard and improbability: The systematic and appropriate model helps to
reduce the probability of risk and other influences. This enquiry helps to reduce the
possibilities of risk occurs in the organization.
 Procurement of specific possessions and activities: The Drone Delivery System
adapted some strategies to determine the current stage of the market. The resources do
not only include the tangible requirements rather than that it also includes the personal
and professional capabilities like skills, talent, capabilities of employees which are most
necessary to adapt the company growth (Geissdoerfer, et. al., 2018).
9

Critical success factors to be managed during the execution of the idea
The strategy of Drone Delivery System adopted a very effective and strong business model but
the strong execution of the model requires adapting some significant factors to achieve growth
and success.
 Modest estimating conserved to confirm consumer importance: The strategy had
adapted some significant services to provide benefits to the customer. The thing which is
necessary to be concerned is to determine the reasonable and satisfactory cost to the
customer (Hietschold, et. al., 2018).
 Topmost administration cognizes and tracks strategic commercial records: The
Drone Delivery System had maintained some data to understand the working culture of
different department. These records help the organization to understand the current
market value of the company.
 Self-reflection: Self-reflection is most necessary for each employee of the organization.
As it provides a determination of self-capabilities and skills. The organizational structure
can only be developed with equal support of internal and external factors (Hietschold, et.
al., 2018).
 Marketplace Exploration: Each organization adapted their own market value and these
values need to be analysed as it is the major factor which encourages going further
towards the growth (Mavi & Standing, 2018).
 Conveniences and apparatus are sufficient for the work: Every organization needs to
do the hard work to achieve more success and growth but to achieve the same the most
necessary thing is to have the required resources and capabilities (Mavi & Standing,
2018).
10

Identification of critical risks and assumptions
The business model of an organization is a very tricky and crucial concept is this is necessary to
understand the risk or hazard it can adapt. The risk can impact the organization in a negative
manner to reduce the possibilities of negative impact most necessary thing is to determine the
risk.
 Brainstorming: The most necessary thing to avoid the thing is to understand the risk.
The brainstorming or thinking about the different aspects of an organization can help to
determine the probabilities of scenarios which can affect the organization in a negative
manner (Muro, & Turner, 2018).
 Assumption Analysis: After the analysis or thinking of risk the next step is to determine
the justification of the assumption. As the assumption can only help to make some certain
efforts to avoid the risk. But the probability can help to build risk management
(Geissdoerfer, et. al., 2018).
11

Evaluation of the overall feasibility of the idea
It is easy to make an idea or strategy.
Score(-5 to +5) The overall potential of the
Business Idea Based on
Each Part
Suggestions for improving
the Potential
Part 1
Alteration of client’s
partialities
Moderate The strategies and policies are
inventory to be a module to
achieve growth.
Implication of services to
customers
high The communication and link
with customers provide
opportunities to get there
feedback.
Part 2
Industrial progress level
Moderate This is necessary to determine
the needs and requirements of
customers to provide
profitability.
Part 3
Consciousness of facilities
Module Good and strong strategies
can help the organization to
achieve the goals.
Part 4
Predictable endeavour
understands the market and
High The strategies and approaches
help to determine the
satisfactory advantages which
help to achieve organizational
and individual growth.
12