INNOVATION AND BUSINESS DEVELOPMENT: A Report for Shine Beauty

This report focuses on an innovative product, a smart mirror, designed to improve Shine Beauty's business by enhancing customer satisfaction. It explores the application of the business model canvas to identify the company's value proposition and highlights the benefits of the smart mirror, such as allowing customers to virtually try on cosmetics. The report analyzes the challenges, including the need to effectively communicate the product's value to customers and address concerns about its size and cost. It uses a SWOT analysis and option analysis to evaluate strategic responses and potential project outcomes. Recommendations are provided for efficient product implementation, emphasizing the use of artificial intelligence and effective marketing strategies to overcome challenges, and maintain a competitive edge, and ensure customer loyalty. The report also includes a business model canvas and a table of project options with financial analysis.

Running head: INNOVATION AND BUSINESS DEVELOPMENT
Innovation and Business Development
Name of Student
Name of University
Author Note

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INNOVATION AND BUSINESS DEVELOPMENT
Executive Summary
The report focuses on a new and innovative product that can help in improving the business
of Shine Beauty. The product in focus is a smart mirror that can be utilised by the company in
order to satisfy the customers. However, the problem related to the product is that it needs to
be conveyed to the customers. The smart mirror can help customers choose a type of
cosmetic that they see fit for their face. The application of business model canvas for
identifying the value of the company is stated and the benefits that can be generated from the
products are provided in the report. Recommendations are provided so that the product can be
used in an efficient manner in the future.

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INNOVATION AND BUSINESS DEVELOPMENT
Table of Contents
Introduction................................................................................................................................2
Activity 1....................................................................................................................................2
Identification of the innovation..............................................................................................2
Activity 2....................................................................................................................................3
Evaluating business models...................................................................................................3
Activity 3....................................................................................................................................5
Develop case document..........................................................................................................5
Problem..................................................................................................................................5
Benefits..................................................................................................................................6
Strategic responses.................................................................................................................7
Option analysis of the project................................................................................................8
Recommended solution and feasibility..................................................................................9
Conclusion................................................................................................................................10
Bibliography.............................................................................................................................11

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INNOVATION AND BUSINESS DEVELOPMENT
Introduction
Innovation and business development is an important aspect that needs to be
considered in an organisation. Organisations need to mitigate the important issues in business
by considering innovative approaches that are essential for the development of a market.
According to Avital et al. (2014), innovation assists in developing the market and providing a
competitive advantage in the business. It helps in enhancing the production and increases the
level of satisfaction of the companies. The report focuses on the innovation model that can be
adopted by Shine Beauty so that it can provide proper choice of cosmetics for the customers.
The developed product in focus is the Fx Smart Mirror that can help customers to choose
their preferred cosmetic of their choice.
Activity 1
Identification of the innovation
It is important for every organisation to maintain sustainability in the business.
Without sustainability, organisations cannot gain the trust of the community. Therefore, the
innovation needs to be made keeping in mind the sustainability (Batra & Keller, 2016). The
idea generated can be provided to Shine Beauty, can help in maintaining such sustainability.
The idea of Fx Smart Mirror can help the company attract customers. Customers can try on
the customers by using the smart mirror without actually applying it on the face. The
uniqueness of the product is that it can be used like smart phone and the customers can see
the choice of cosmetics that appear after sliding instantly as to whether it suits their
requirement. It can help in analysing the face and suggest suitable cosmetics required for the
face. Therefore, Shine Beauty had aimed at customer satisfaction and utilised a product that
can be used in a manner that is identical to the use of smart phones.

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INNOVATION AND BUSINESS DEVELOPMENT
The new idea adopted by Shine Beauty can help in the continuous development of the
company (King & Baatartogtokh, 2015). The basis of the innovative strategy is the need of
the customers and the manner in which the constraints can be solved. One of the constraints
of the product is the fact that it is large. Unlike pocket phones, the smart mirror cannot be
portable. Therefore, customers need to visit the physical stores so that they can apply the use
of makeup. At the same time, the cost of the product is expensive. The innovation can help
customers to identify from a wide range of products that are available in the market. The
smart mirror can help in the development of market value and ensure that the innovated
product can provide the customers with the ultimate satisfaction that exists in the market. It
can be said that the smart mirror can help a business to develop and at the same time ensure
that the products are continuously innovated. The smart mirror can be used in beauty salon
and can be used at home so that customers can get ready for any type of outing whether it is
done at a professional level or personal level.
Activity 2
Evaluating business models
Key Partners
 Investors
 Advertisers
Key Activities
 Purchase of
raw
materials
 Consumer
service
through the
identificatio
Value Propositions
 Competitive
pricing
 Various
choice of
cosmetics
 Broad range
of promotions
Consumer Relationships
 Identification
and the
segmentation of
the customers
 Consumer
satisfaction

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INNOVATION AND BUSINESS DEVELOPMENT
n of the
needs of the
customers
to attain
customer
attention
 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
Table 1: Business model canvas
(Source: Osterwalder & Pigneur, 2013)

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INNOVATION AND BUSINESS DEVELOPMENT
Activity 3
Develop case document
Problem
The problems that Shine Beauty may face can be comprised of the customers. One of
the biggest challenges that the company may face is to convince the customers about the
usefulness of the product. According to Kleinknecht (2016), most of the customers may be
old school and due to this, they may prefer to have physical evidence regarding the purchase
of the products. The managers of Shine Beauty need to be aware of the responses they may
receive particularly from the older generation. Hence, the target market can be narrowed
down to the fashionable youth capable of using smart phones and have a leisure time while
using the product. The reason behind the occurrence of this particular issue is that the
improper marketing and promotion of the products (Lusch & Nambisan, 2015). The
reputation of Shine Beauty had taken a downward turn in the market and it is important to
identify the reason behind the fall so that the product may be promoted in a proper manner.
Another problem that can be mitigated by the application of the smart mirror is the
fact that the customers can apply the make-up and remove it in a virtual manner. Unlike the
application of cosmetics in a manual manner, the application of the smart mirror can provide
customers with the choice of identifying the best make-up that can be suitable for the skin
(Osterwalder et al., 2014). Hence, testing the make-up before applying it can act as a means
of innovation that can be applied. Shine Beauty can develop the regular mirrors and ensure
that the application of the smart mirror can help the company to gain more customer base.
Hence, the adoption of disruptive innovative method can help in increasing the
reputation of the company and ensure that Shine Beauty regain their lost status in the market.
Dawes and Nenycz-Thiel (2014) stated that the input of artificial intelligence in the smart

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INNOVATION AND BUSINESS DEVELOPMENT
mirror could help it control the functioning. The customers can use the mirror in a dual
manner that comprise of the basic use of the mirror and the smart use. The artificial
intelligence can suggest the best outfit that can suit the customers. Therefore, it can be said
that excess talented resources is necessary for Shine Beauty so that it can implement the
disruptive innovation tactics. Therefore, the plan needs to be executed properly for the
promotion of the product (Newman, Wachter & White, 2018).
Shine Beauty need to resolve these issues as soon as possible so that it can try to
maintain its reputation in the business. For this, it can be said that Shine Beauty, can use a
proper promotional strategy so that smooth functioning of the production can take place. At
the same time, the risk factors that may be encountered by the organisations also need to be
taken into account (Thomsen, 2018). The risk factors in this case involve the development of
the business so that it can align itself with the changes in the market. Yan et al. (2018) stated
that effective management could help companies to mitigate any type of threats that exists in
the market. Therefore, Shine Beauty needs to adopt proper managerial skills so that it can try
to be competitive with the competitors (Serrat, 2017).
Benefits
One of the benefits that can be obtained from the manufacturing of the product is that
the development of the artificial intelligence can take place. This can help in enhancing any
new business ideas that can be used in the future. At the same time, the capabilities of Shine
Beauty can be analysed and the manner in which it can develop itself in the market can be
identified. According to Porter and Heppelmann (2014), the demands of the people can be
met by strengthening the current capability and ensuring that the consistency in the workforce
is maintained. Apart from the benefits of understanding the capabilities of the companies,
Shine Beauty can also measure the loyalty of the customers (Tanaka et al., 2017). The smart
mirror can help in the effective development of the organisation and can improve the

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INNOVATION AND BUSINESS DEVELOPMENT
organisation in the eyes of the customers. Apart from a few constraints, the development of
the product can help Shine Beauty address the needs of the fashion sense of the customers
(Pappas et al., 2016).
In the case of the development of the smart mirror, it is essential that the constraints
regarding the development be identified. As mentioned earlier, the constraints are basic and
can be mitigated with proper managing techniques (Kogan et al., 2017). Another benefit that
can be received from the development of the smart mirror is that people will be encouraged to
visit the physical stores. Joyce and Paquin (2016) are of the opinion that with the
development of online purchasing, the visit to the physical stores have ceased. Hence, the
smart mirrors can compel the people to visit the stores so that they can admire the products
and purchase it from the stores.
Strategic responses
The strategic response that Shine Beauty needs to formulate is the identification of the
features that cannot be implemented in the product. For example, the size of the smart mirror
is large therefore; it cannot be fit in the pockets of the customers (Tukker et al., 2017). This
can be a challenging factor for Shine Beauty as the company need to shorten the size so that
extra cost of adding software can be reduced. Therefore, the financial condition of the
company can be maintained and Shine Beauty can use it to develop other innovative
products. More technologies can be input so that the product can be developed further. This
can also help in addressing the needs of the customers and ensure that the success of the
company and the product are enhanced (Porter & Heppelmann, 2015). The development of
the target market can help Shine Beauty to focus on the exact needs of the customers and
develop the products accordingly. A SWOT analysis can be provided to analyse the responses
further

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INNOVATION AND BUSINESS DEVELOPMENT
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
Table 2: SWOT Analysis
(Source: Thananuraksakul, 2018)
Option analysis of the project
The operational analysis can be done based on the financial analysis of the innovation
process that is adopted. The project options need to consider the development of the
innovative process and its application in the first two years of its production in the industry.
Project
option 1:
Do
Nothing
Project
option 2:
Utilise
Project
option 3:
Do
Nothing
Analysis Period
(years)
Year 1 Year 2 Year 3
Capital Costs ($m) $0 $0 $0
Output Costs ($m) $100 $100 $50

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INNOVATION AND BUSINESS DEVELOPMENT
Present Value of
Benefits ($m)
$50 $80 $67
Present Value of
Costs ($m)
$45 $90 $70
Benefit Cost Ratio 3:2 4:5 2:1
Net Present Value
($m)
$78 $100 $45
Intangible costs /
benefits (e.g. small,
med., large)
$10 $10 $10
Distributional
impacts (e.g. small,
med., large)
$40 $60 $50
…
Preferred option Do
nothing
Utilise Do
nothing
Table 2: Calculation
(Source: Created by author)

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INNOVATION AND BUSINESS DEVELOPMENT
Recommended solution and feasibility
After the analysis of the innovative product, it can be said that the feasibility need to
be considered based on the value proposition of the products. Steps need to be undertaken so
that the continuous innovation of the product can take place. Shine Beauty need to ensure that
the product remains unique with a few changes such as reducing the size of the mirror by
trying to incorporating the innovation in the hand mirrors that are used. One of the
recommendations that need to be considered is the fact that the product need to be smaller.
This can help Shine Beauty to sell the cosmetics to the customers.
The deliverability of the product needs to be done with the help of social media. A
direct delivery of the product can be done to the customers after the purchase the product via
any online source or from the physical stores that sell electronic equipments. The
deliverability can be associated with the promotion of the products and the manner in which
the customers can be able to be informed about the product. The target customers can be
sorted and with the application of social media searching, the customers can be provided with
an opportunity to identify the product.
Conclusion
Therefore, it can be concluded that Shine Beauty hopes to gain back the popularity of
the company by applying the use of smart mirror in the company. The innovative process can
help in satisfying the customers and ensure that they get the proper exposure while
implementing technical changes in the company. The changes in the company and the
adoption of the smart mirror can help Shine Beauty to solve any problem related to the
adoption of innovative practises in the company.

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INNOVATION AND BUSINESS DEVELOPMENT
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