MGMT20132: BHP Innovation and Sustainable Business Development Report

This report focuses on innovation and sustainable business development within BHP, an Anglo-Australian mining company. The report identifies the problem of achieving decent work and economic growth in the mining industry, considering the risks and environmental impact. It proposes the use of robots as a key solution, outlining their application in various tasks to improve efficiency and safety. A detailed value proposition canvas is used to highlight the gains, pain relievers, and product/service benefits. The report also analyzes the targeted customers, competitive advantages, and strategic fit of this innovation. Furthermore, it includes an assessment of business model assumptions using the Business Model Canvas and explores alternative innovation tools like Porter's Five Forces and SWOT analysis. Finally, the report provides a self-reflection on the student's learning and understanding of business model innovation and sustainability.

Report innovation and sustainable business
development

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
The problem to be solved............................................................................................................3
Problem insight............................................................................................................................3
Portfolio of generated solution concepts.....................................................................................3
Solution selection.........................................................................................................................4
Novel value proposition...............................................................................................................4
Targeted customers......................................................................................................................5
Competitive advantage................................................................................................................5
Strategic fit...................................................................................................................................6
Assessment of critical business model assumptions and uncertainties.......................................6
Argumentation for selection of innovation tools.........................................................................7
Self-reflection..............................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Innovation and sustainable business development refers to developing innovation for
growth of business and making it successful in long term. In this report sustainable business
development will be discussed through innovation. In this report business innovation for BHP
will be proposed. BHP is an Anglo-Australian multinational mining, metal and petroleum
company. It was founded in 1885 and is headquartered at Melbourne, Australia and London, UK.
Products of BHP include Iron ore, coal, petroleum, copper, natural gas, nickel and
uranium. In this report innovation will be based on Robots technology trend and this will enable
to achieve decent work and economic growth.
MAIN BODY
The problem to be solved
Problem that is to be solved is How to achieve decent work and economic growth in
mining company BHP.
Problem insight
Mining industry is one of the sector in which working involves significant risk for
humans working there. Along with this, after a certain time mining can also become uneconomic
as further economic activities of mining cannot be solved with existing methods. This is why it is
important to understand how decent work and economic growth can be achieved in mining. Also,
there is need to focus on sustainability as well because mining industry highly impact on
environment. It results in high pollution and affecting ecosystem to a great extent (Press, Robert,
and Maillefert, 2020). Thus, this issue requires to be solved through decent work and economic
growth.
Portfolio of generated solution concepts
There are different solutions for solving the problem and solution concepts include using
Robots, Big Data and use of affordable clean energy and responsible consumption and
production.

Solution selection
Among these solutions, Robots have been selected as a solution for the problem to
achieve decent work and growth economic in mining company. Robots are to be used for several
tasks within mines, however Robots will be used alongside humans rather than in place of
humans, this will ensure that humans do not lose their job because of Robots. Robots can be used
to navigate flooded passages (Grehl, Mischo and Jung, (2017). Robots can also be used to
recognize different minerals and metals. Robots can also be used for identifying risks and
hazards in mines and this reduces risk for employees and workers working in the mines.
Novel value proposition
Value proposition canvas can be used for proposition of value. This is a tool through
which businesses can ensure that a product or service is positioned around needs and
requirements of customers. This was developed by Osterwalder to ensure fit between product
and market.
Figure 1 Value Proposition Canvas
Value Proposition

Gain Creator- This is concerned with how product or service create gain. Using Robots by
BHP will increase and enhance quality of its products. Also, it will enable in performing
complex tasks and activities.
Pain Relievers- This is concerned with how innovation alleviates pain and using this innovation,
BHP will become able to reduce risk involved in its functioning and along with this, BHP also
becomes able to sale at low price (Belleflamme and Neysen, (2021). The risk related to health
and safety will be reduced because of use of robots.
Products and service- In this, Robots are included and this will underpin creation of value for
the customers. Robots will increase and enhance quality of product and this is how customers
will get value. Moreover, efficiency of company will increase as well.
Customer Profile
Gains- This involves benefits that customer expects and needs and through use of Robots BHP
will be able to provide enhanced quality of products and use of Robots will also reduce cost and
price of products.
Pains- This involves negative experiences, emotions, and risks that customers experience in the
process of completing job. High price of the product is a negative experience and use of Robots
by BHP will reduce price of high quality products.
Customer jobs- Product offering of the BHP is required for performing several functions by
customers, because BHP is selling different products. This involves Iron ore, coal and these are
required for selling products that are made of iron and other products of BHP.
Targeted customers
Targeted customers of BHP includes industrial segmentation and customer sector group
involves iron ore, base metal, petroleum, coal for energy, stainless steel material, manganese and
diamonds and specialty (Zhai and McDermott, (2021). This means that BHP has differentiated
target market in which industrial customers working in different industries are customers of
BHP.

Competitive advantage
Use of Robots by BHP is likely to provide several competitive advantages to BHP. The
competitive advantage involves better quality of products (Metals and Minerals) of BHP. Along
with this reduction of cost is also a competitive advantage that customers will be able to buy high
quality products at less price. Competitive advantage through Robots includes perfection in
activities of the BHP and this will lead to increase in quality of overall business activities of the
company (Distanont and Khongmalai, (2018). Along with that, robots will be able to do complex
tasks in less time. Thus, it will increase productivity and efficiency of company as well. So, in
this way goals will be achieved in effective way and competitive advantage is gained.
Strategic fit
Strategic fit is achieved when products and services that are offered as a part of value
proposition is able address most significant pains and gains from the point of view of customers.
In this gains for customers is high quality of metals and minerals that they are buying and pain
are price, however price of product of BHP are sold at less price, use of Robots in working will
further reduce cost of its metals and minerals (Shankar and Shepherd, (2019). This is why
customers will be able to buy products at lower prices.
Assessment of critical business model assumptions and uncertainties
Business model assumptions can be made using Business Model Canvas (Ojasalo and
Ojasalo, (2018). A business model canvas for BHP is as follows-
Business Model Canvas for BHP
Key Partners
Suppliers for
machinery and
equipments are
key partners.
Key Activities
Key activities of
the business
include Mining
and transactions.
In this metals
and minerals are
Value
proposition
BHP creates
value by mining
and giving
material in form
of minerals and
Customer
relationships
Customer
relationship is
managed by
BHP by in
different ways
Customer
segments
BHP is solving
customers for
Industrial
customers who
convert metal

extracted for
further use by
industrial
customers.
metals to
customers.
mainly it is One
to one and
Online and
through phone.
and material into
useful things for
end customers.
Key Resources
Resources for
BHP includes
financial
resources,
Human
resources,
machinery and
equipments for
mining.
Channels
Certain channels
that are to be
used for value
proposition
includes Online
and through
social media.
Along with this
networking,
trade shows are
channels for
communicating
to customers.
Cost Structure
BHP incurs significant cost in operating its
business and other than this, cost is also
incurred in legal, insurance activities.
Revenue Streams
Revenue model for BHP includes Price of
products and gain on equity. In this BHP
extract minerals and metals and then these are
sold for price on the basis of value of product.

Argumentation for selection of innovation tools
In this other innovation tools can also be used and applied instead of business model
canvas. The other tools such as porter five force can be used. It enables in doing competitive
analysis and how innovation can enable BHP to gain competitive advantage in market.
Moreover, SWOT analysis tool can be used which provide an in depth data and info about
strength and weakness of innovation done and opportunity and threat in it. Along with that, the
tools can have shown that how BHP will be able to gain competitive advantage in market (Lee,
and Seo,2018). In value chain analysis it can be evaluated in what area robots are being used
and how it results in innovation. Thus, these are some tools which can be used instead of
business canvas model. Along with it, there are certain features of tools which make things easy
to understand them. Besides that, pricing framework innovation tool was also used by which
price of product was decided. In that cost of product was estimated and then according to that
price was decided. Another innovation tool applied was to find out key assumptions. In that
assumptions related to innovation of product and how it can benefit in market. Then,
assumptions were tested and on basis of effectiveness changes was made into innovation.
Self-reflection
In my personal experience, I have been shared the opinion or view point about the
Innovation and sustainable business development, which may refers as developing innovation for
growth of business and making it successful in long term growth or development in marketplace.
On the basis of report, I have been examined that innovation for BHP, which has become
proposed. In order to promote the sustainable development and value proposition as business
model. I have been determined the capability of innovation in term of sustainability which means
that gain competitive advantage. According to me, I have reflects on the particular business
model innovation in the mining field or area. Despite, I have gained a lot of importance of this
business innovative model in order to focus on the sustainable, unique value proposition. I have
been described about the significant risk for humans working there. This is because of
uneconomic as further economic activities of mining cannot be solved with existing methods. As
per analysis, I have been clearly define as best solution as modern technologies in order to
resolve the problem to achieve decent work and growth economic in mining company. usually, I
have been expressed the interest and perform different kind of tasks such as mines, however it
become easier for me to understand the importance of innovation where how they can easily

resolve current business problems in proper manner. Sometimes, I have ensured that humans do
not lose their job because of the innovation of technology in term of sustainable development.
In my personal opinion about the transformation which I have learnt from this report. I am
trying the approach more sustainable economic system that increasingly desirable. Before
implementing a solution of problem, I have been established a good communication with
different stakeholders, commanding the most essential resources and capabilities. On the basis of
study, I have been encouraging myself to focus on technological advance towards sustainability
which are primarily incremental.
I have been improved my own understanding towards business model innovation which means
that identify with own thoughts pattern on the subject of sustainability and also confirm
accordingly. I have investigated the importance of sustainable and value proposition, anticipated
for various kind of practices. Through this report, I have been expressed own idea, assumption
where technological aspect become an important part in sustainable business. Where I has been
established a coordination with different people and discuss in regards of technical innovation.
Whenever, I have expressed the own understanding towards the sustainable and value
proposition in order to improve overall business need or requirement. Generally, I am acquired a
lot of information from different sources to find accurate details. This will help me to find
appropriate idea in which enhance the overall business growth and development. this reflection is
all about the experience, thoughts, viewpoints and assumption, which may gained at the time of
analysis. That’s why, I could believe on the topic of novel value proposition and sustainable
innovation development. I have realized that each and every business depends upon these
factors, which may help for enhancing the capabilities or performance.
CONCLUSION
From report it can be summarized that BHP is an Anglo-Australian multinational mining,
metal and petroleum company. The problem to be solved is achieve decent work and economic
growth in mining. So, robots are selected as a solution. The use of robots will increase and
enhance quality of its products. Also, target customers of BHP are industrial segmentation and
customer sector group involves iron ore, base metal, petroleum, etc. the company will gain

competitive advantage in market. The innovation tool used in it is business canvas model. But
there are some other tools as well which can be used such as porter five force, SWOT, value
chain, etc. this provide an in depth info about competitive advantage.

REFERENCES
Books and Journals
Belleflamme, P., & Neysen, N. (2021). A Multisided Value Proposition Canvas for Online
Platforms. Journal of Business Ecosystems (JBE), 2(1), 1-14.
Distanont, A., & Khongmalai, O. (2018). The role of innovation in creating a competitive
advantage. Kasetsart Journal of Social Sciences.
Grehl, S., Mischo, H., & Jung, B. (2017). Research perspective-mobile robots in underground
mining. AusIMM Bulletin, (Feb 2017), 44-47.
Ojasalo, J., & Ojasalo, K. (2018). Service logic business model canvas. Journal of research in
marketing and entrepreneurship.
Shankar, R. K., & Shepherd, D. A. (2019). Accelerating strategic fit or venture emergence:
Different paths adopted by corporate accelerators. Journal of Business
Venturing, 34(5), 105886.
Zhai, N., & McDermott, E. (2021, April). Research and Design of Screening Model of Target
Customers for Internet Bank Financial Product. In 2021 6th International Conference
on Social Sciences and Economic Development (ICSSED 2021) (pp. 41-47). Atlantis
Press.
Lee, Y.H. and Seo, Y.W., 2018. Strategies for sustainable business development: utilizing
consulting and innovation activities. Sustainability, 10(11), p.4122.
Press, M., Robert, I. and Maillefert, M., 2020. The role of linked legitimacy in sustainable
business model development. Industrial Marketing Management, 89, pp.566-577.