Business Model Innovation: Platter's 3D Virtual Reality Integration

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Contents
Introduction......................................................................................................................................3
Issues Identified in the Existing Innovation Needs.........................................................................4
Benefits to Customer from New Idea..............................................................................................4
Key Interrelationships in the Proposed Model................................................................................6
Key Success Factors of the Proposal...............................................................................................7
Assumptions and Critical Risks for New Business Model..............................................................7
Conclusion.......................................................................................................................................9
References......................................................................................................................................10
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Introduction
Whenever a new idea is introduced into an organisation it is seen that it takes a lot of time and
adjustment for the new and innovative idea to full take its place into the operational process.
Also it takes time for the customers to get used to such new and innovative services or products
offered by the organisation. There needs to be changes done in Platters business model so that
the idea can run successfully. The old business model could not support this idea because new
strategies and functions would have to be introduced into it.
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Issues Identified in the Existing Innovation Needs
One of the issues that can be seen in the business model is that there are a lot of competitors
which are present in the market that may increase the level of substitute products. The other issue
that can be seen is that the organisation does not have a stable revenue stream. This financial
issue can lead to other issues because the organisation is spending more and more on innovative
products while not realising that there is a need to properly manage these expenses. One main
issue that can be identified is that without doing market service it will become difficult for the
organisation to sell their new and innovative products. The organisations main focus is on hiring
people who know how to work with new and innovative technology because in today’s world it
is seen that technology will change quickly and then the organisation would have to hire new
people who have the skills to operate the new technology. The cost structure of the organisation
needs to be set in collaboration with the value proportion. If these two are set then there will be a
better and stable revenue stream for the organisation.
Benefits to Customer from New Idea
The benefits that can be seen from the new ideas are that both the customers and the organisation
will benefit. The introduction of 3D virtual reality is a new and innovative idea that will give a
change to the customers so that they can fully analyse the products that are being sold on the
website of the organisation. Also what can be seen by the new idea is that the revenue stream
will be more stable because it is aligned with the activities and the customers. The products that
will be shown to the customers will be in 3 dimensional and virtual reality way so that they can
look at it carefully from every angle possible (Akpan, & Shanker, 2017. pp. 201).
Key Partners
Online Websites
Fashion Brands
Technology/
Electronic
Brands
Key Activities
Introduce new
and innovative
products and
services.
Use development
programs for
Value
Propositions
The use of
virtual 3D
description and
visualisation.
New technology
Customer
Relationships
Customers have
a more better
understanding of
the products that
they want to
Customer
Segment
People who use
the internet often.
Retail
organisations
who want to sell
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Retail
Organisations
increasing skills
of original
employees.
Update the
application to
new software
use.
Merchandising
of various
products.
is used.
Analyse the
products more
clearly.
Range of
Products to select
from.
purchase.
Will lead to
customer loyalty
as products are
assessed
thoroughly
(Ramanathan et.
al. 2017. pp.
778).
their products in
a better and
efficient way
online.
Key Resources
Employees who
now how to
operate various
softwares.
Employees with
update skills
about new
technologies and
a workforce with
innovative ideas.
3D virtual
automation.
Channels
Online websites.
Smartphone
application both
on Android and
IOS.
Cost Structure
The cost structure of the organisation is
making sure that its sales are high while
implementing innovation practices.
Revenue Streams
The commission that is received from the
industries that wants to advertise their products
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Research of markets.
Proper technology arrangement.
Higher level of automation.
on the organisations websites.
The innovative products that are sold to the
customers by using virtual reality technique
hence lead to customer awareness and higher
benefits.
Key Interrelationships in the Proposed Model
The relation between the customer relationship and Revenue are needed to be working in
collaboration. It is needed to be seen that customer relationship or customer value is necessary
for an organisation to achieve a high and successful revenue. The level of customers that are
loyal to the organisation will show how much of revenue a firm can generate. The organisation
needs to maintain a healthy relationship with the customers so that the customers keep on using
the services and keep on buying products from the organisation (Shi, 2019. pp. 980).
The customer segment and revenue are two of the other interrelationships that can be seen. If a
proper segment is not identified by Platter then it may not be able to sell its products or offer its
services accordingly. For example, if Platter did not to proper research and targeted the old age
department then they would not generate any profits as old people do not use the internet that
much to do their shopping. On the other hand if it targeted the youth or millennial then there
would be high profits that would be obtained. This would directly affect the revenue stream as
more money would be provided to the organisation (Mohaupt & Hilbert, 2015. pp. 323).
Key activities and customer segment are another key relationship of the business model canvas.
The activities which are new and innovative need to be indicated towards the customer segment.
If the customer segment is decided then it will be easier to introduce new and innovative services
or products that will capture the market easily.
Key Success Factors of the Proposal
There are many key success factors that can be seen of the new proposal. Platter can use the key
activities to make sure that innovation is done properly by the employees. Meaning that the
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present employees could go through development so that they understand how to implement 3
dimensional using virtual reality techniques. New employees would have to be hired each time a
new skills is required, this issue would be dealt with if proper development is implemented.
Another factor that can be success factor is that the revenue stream is more stable and linked to
the other factors. As the revenue is linked with the other factors of the model then it will run in
collaboration with the other factors. The cost structure is now more focused on innovation as
well as on research of the market. This will lead to a better understanding of what the customer’s
needs are (Kesting & Günzel-Jensen, 2015. pp. 285).
Assumptions and Critical Risks for New Business Model
Assumptions that can be made from the model are that the idea of using three dimensional virtual
reality will lead to a better understanding for the customer hence making the customer base
larger for the organisation. Another assumption is that it is seen that the economy is stable in
which the idea is launched because if not then virtual reality will be a flop in such places.
In this model there are some risks which can be identified. One of the risks is that too much
focus on put on innovation and less on seeing what operations can be put into the model so that
performance can be evaluated. It is necessary that with innovation effort of the employee should
be put in order to increase the efficiency of the innovative products or services. The next risk is
that too much expenses can be adjusted to the research and development department which will
make resources less available to develop a new product.
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Part 1
Preference Changes of
Customers
High New and innovative changes
would have to be made
regarding the services.
Services are for all segments Moderate Identify the targeted audience
and then get feedback from
them.
Part 2
Organisation’s development
High The Customers can request for
certain changes to be made as
per their demands.
Part 3
Customer Awareness
High See how much the customers
know about the virtual reality
services that are provided by
Platter
Part 4
See if the structure/model
meets the customer’s need and
organisations goals.
High The organisation must focus
on both the needs of the
customer and whether it is
achieveing the goals set out
through its new and innovative
idea.
Feasibility: it can be seen that the organisation’s new idea will meet the demands of the
customers as well as make sure that the organisation functions in a proper manner.
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Conclusion
The new idea of three dimensional virtual reality has led Platter to gain a higher customer base.
To implement such an idea into their operational processes it is necessary for an organisation to
make certain changes in its business canvas model (Fang et. al. 2014. pp. 412). After
implementing these changes it was seen that the organisation’s understanding of how to
implement the idea in both its operations and for its customers was achieved. There were issue
which were arising due to the last business model that were solved in this model. New marketing
techniques and the stableness of the revenue stream led to the success of the organisation.
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References
 Ramanathan, U., Subramanian, N., Yu, W., & Vijaygopal, R. (2017). Impact of customer
loyalty and service operations on customer behaviour and firm performance: Empirical
evidence from UK retail sector. Production Planning & Control, 28(6-8), 478-488. DOI:
https://doi-org.ezproxy.cqu.edu.au/10.1080/09537287.2017.1309707
 Mohaupt, M., & Hilbert, A. (2015). A customer value-based airline revenue management
approach considering both opportunity costs and misclassification of heterogeneous
clients. Journal of Revenue and Pricing Management, 14(5), 321-341.
DOI:10.1057/rpm.2014.31
 Shi, X. (2019). Can revenue management be integrated with customer relationship
management? International Journal of Contemporary Hospitality Management, 31(2),
978-997. https://doi-org.ezproxy.cqu.edu.au/10.1108/IJCHM-01-2018-0039
 Akpan, & Shanker. (2017). The confirmed realities and myths about the benefits and
costs of 3D visualization and virtual reality in discrete event modeling and simulation: A
descriptive meta-analysis of evidence from research and practice. Computers &
Industrial Engineering, 112, 197-211. DOI:
https://doi-org.ezproxy.cqu.edu.au/10.1016/j.cie.2017.08.020
 Kesting, & Günzel-Jensen. (2015). SMEs and new ventures need business model
sophistication. Business Horizons, 58(3), 285-293
 Mason, & Chakrabarti. (2017). The role of proximity in business model design: Making
business models work for those at the bottom of the pyramid. Industrial Marketing
Management, 61, 67-80. DOI:
https://doi-org.ezproxy.cqu.edu.au/10.1016/j.indmarman.2016.08.005
 Fang, Zhang, Şensoy, & Magnenat-Thalmann. (2014). Reputation mechanism for e-
commerce in virtual reality environments. Electronic Commerce Research and
Applications,13(6), 409-422. DOI:
https://doi-org.ezproxy.cqu.edu.au/10.1016/j.elerap.2014.08.002
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