Business Development Report: Analyzing Pen Water Purifier Innovation

This report delves into the innovation of a pen-structured water purifier within the customer goods industry, focusing on the need for clean and healthy drinking water for global travelers. It identifies market problems such as lack of target customers and challenges in convincing people about the product, proposing a business model canvas by Osterwalder and Pigneur to generate value. The report explores the application of disruptive innovation, the working process, and financial feasibility, highlighting the role of investors in providing financial support and developing the company's resources. It emphasizes the importance of investors in ensuring financial maintenance by analyzing the budget and includes a bibliography of relevant academic sources. This report provides a comprehensive overview of the business development aspects of the pen water purifier concept.

INNOVATION AND
BUSINESS DEVELOPMENT

Introduction
Innovation in customer goods industry helps in
its development
The idea in focus is the pen structured water
purifier
The needs of the customers in drinking clean
water and maintaining healthy is required

New idea
A pen structured water purifier can help
the customers travelling around the
globe. It can help in analysing the salinity
and toxicity in the water

The market problem
Lack of target customers
Convincing the people about product
Lack of talented and efficient resources

Apply business model canvas proposed by Osterwalder and
Pigneur
It helps in generating ideas related to the value of the
innovation
Disruptive innovation can be used for developing changes
Business model used

Working of the process
Owners of cars can
register their cars with
the business using the
company’s mobile
application.
The owners’ cars
would be tested for
quality and legal
ownership
The customers who
wish to rent the car
can register on the
mobile application and
rent out their
preferred car for their
preferred time
duration
The customer’s identity
would be validated and
police verification
would be conducted
Car can be rented to
customer

Financial feasibility
Year 1 Year 2
Net income $193,522 $197,392
Depreciation $72,500 $73,950
Accounts receivable ($90,000) $0
Inventories $0 $0
Accounts payable $0 $0
Amortization 5,000 5,000
Other liabilities 10,000 10,000
Other operating cash flow items 0 0
Total operating activities $191,022 $286,342
Capital expenditures $0 $0
Acquisition of business 0 0
Sale of fixed assets ($82,725) ($84,380)
Other investing cash flow items 0 0
Total investing activities ($82,725) ($84,380)
Long-term debt/financing ($95,000) $0
Preferred stock 0 0
Total cash dividends paid 5,000 5,000
Common stock 0 0
Other financing cash flow items 0 0
Total financing activities ($90,000) $5,000
$18,297 $206,963
$0 $18,297
$18,297 $225,260

Role of investors
Investors need provide support in terms of finance
They need to develop the resources and capabilities of the company
Investors need to ensure that the finances are maintained by
analysing the budget

Bibliography
 Avital, M., Andersson, M., Nickerson, J., Sundararajan, A., Alstyne, M. V., & Verhoeven, D. (2014). The Collaborative Economy: A Disruptive
Innovation or Much Ado about Nothing?.
 Christensen, C. M., Raynor, M. E., & McDonald, R. (2016). What is disruptive Innovation. The Encyclopedia of Human-Computer
Interaction, 2.
 Corsi, S., & Di Minin, A. (2014). Disruptive innovation… in reverse: Adding a geographical dimension to disruptive innovation
theory. Creativity and Innovation Management, 23(1), 76-90.
 Cortez, N. (2014). Regulating disruptive innovation. Berkeley Technology Law Journal, 175-228.
 Dudin, M., Kucuri, G., Fedorova, I., Dzusova, S., & Namitulina, A. (2015). The innovative business model canvas in the system of effective
budgeting.
 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.
 King, A. A., & Baatartogtokh, B. (2015). How useful is the theory of disruptive innovation?. MIT Sloan Management Review, 57(1), 77.
 Muhtaroglu, F. C. P., Demir, S., Obali, M., & Girgin, C. (2013, October). Business model canvas perspective on big data applications. In Big
Data, 2013 IEEE International Conference on (pp. 32-37). IEEE.
 Osiyevskyy, O., & Dewald, J. (2015). Explorative versus exploitative business model change: the cognitive antecedents of firm‐level
responses to disruptive innovation. Strategic Entrepreneurship Journal, 9(1), 58-78.
 Osterwalder, A., & Pigneur, Y. (2013). Designing business models and similar strategic objects: the contribution of IS. Journal of the
Association for information systems, 14(5), 237.
 Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value proposition design: How to create products and services customers
want. John Wiley & Sons.
 Pisano, G. P. (2015). You need an innovation strategy. Harvard Business Review, 93(6), 44-54.
 Reinhardt, U. E. (2013). The disruptive innovation of price transparency in health care. Jama, 310(18), 1927-1928.
 Wallin, J., Chirumalla, K., & Thompson, A. (2013). Developing PSS concepts from traditional product sales situation: the use of business
model canvas. In Product-Service Integration for Sustainable Solutions (pp. 263-274). Springer, Berlin, Heidelberg.