Innovation and Business Development Report: Fx Smart Mirror Project

This report explores the concept of innovation and its importance in organizational development, specifically focusing on the application of the Fx Smart Mirror for Shine Beauty. The report highlights the Fx Smart Mirror as a potential smart phone-like device that allows customers to virtually try on cosmetics, addressing the market problem of dissatisfaction among the older generation and the need to meet the demands of the younger generation. It details the business model, identifies the benefits of increased customer visits, and analyzes Shine Beauty's capabilities and strategic response to this innovation. The report also includes an option analysis of the project and a comprehensive bibliography of relevant academic sources on innovation, marketing, and business development.

INNOVATION AND
BUSINESS DEVELOPMENT

Introduction
Innovation is important for organisational
development
It assists in developing the market
Focus is on the development of Fx Smart
Mirror used by Shine Beauty

New idea
Fx Smart Mirror can be used like a
smart phone
The customers can identify the
cosmetics that suit them and apply the
cosmetics after choosing from a variety of
items

Business model used
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

The market problem
Dissatisfaction among the older generation
Too large and expensive
Lack of talented and efficient resources

Benefits
Increase customer visit to the physical
stores
Meet the needs and demands of the younger
generation
Identify the capabilities of Shine Beauty

Strategic response
Strength
 Smart and innovative 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
 Threat from the competitors
 Lack of ability to convince the old school
customers

Option analysis of the project
Project option 1: Do Nothing Project option 2: Do Nothing
Analysis Period (years) Year 1 Year 2
Capital Costs ($m) $0 $0
Output Costs ($m) $100 $100
Present Value of Benefits ($m) $50 $80
Present Value of Costs ($m) $45 $90
Benefit Cost Ratio 3:2 4:5
Net Present Value ($m) $78 $100
Intangible costs / benefits (e.g. small, med., large) $10 $10
Distributional impacts (e.g. small, med., large) $40 $60
…
Preferred option

Bibliography
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