MGMT20143 Idea Generation and Business Model Development Assignment Sample

• Subject Code : MGMT20143
• University : Central Queensland University My Assignment Services is not sponsored or endorsed by this college or university.
• Subject Name : Management

Table of Contents

Introduction.

Problems and Innovation.

Benefits of innovation.

Business Canvas Model

Inter-relationships of business model elements.

Critical success factors.

Identification of risks and assumptions.

Overall feasibility.

Conclusion.

References.

Introduction to Idea Generation and Innovation

Idea generation and innovation play an important role in the business environment by enabling an organization to expand a wide range of concepts, rationale, and ideas to create something advantageous. In relation to such circumstance, it is vital to magnify one’s thinking to comprise more questions, variables, and ideas before initiating any business plan or proceeding towards an improvement process (Geissdoerfer et al., 2018). Creating an innovative business idea assists an organization to solve existing and identified issues effectively to enhance the business profitably with the assistance of effectual business model (Geissdoerfer et al., 2018). Relating to such fact, this report will focus to analyse critically and assess the feasibility of an online medicine facility via technology to boost the business organization's economy. Thus, this study will help assess the issues of consumers to generate an innovative business idea concerning various factors such as benefits, success rate, risks, and assumptions of implementing the business idea.

Problems and Innovation

Health is an important factor for society and healthcare facilities are what a community typically needs. Considering such a fact, the healthcare sector is one of the emerging businesses for decades (Wirtz et al., 2016). It is been considered as one of the fastest-growing industries in the world (Wirtz et al., 2016). The healthcare sector is been always on demand by consumers meeting their critical needs efficiently (Wirtz et al., 2016). However, there is always a possibility of hidden issues which business organizations often overlook which leads to organizational ineffectiveness and poor business services. By looking at the present scenario, the world is facing a terrible health crisis across the globe with a viral disease - COVID 19. At this stage, pharmaceutical companies have an essential part to play. Due to strict nationwide lockdown, consumers and patients are often finding it difficult to reach retailers to purchase medicines. This problem of consumers has triggered the idea generation of making an online pharmaceutical mart dealing with varieties of business across the region. Besides that, a smartphone application to help consumers access thousands of retailers to select the right medicine and order at their doorstep. This business idea and business model shall act as a heavy advantage for the business organization to grab the opportunity and maximize profit enormously and at the shortest time.

Benefits of the Innovation

Relating to the innovation, there are end numbers of benefits which can be generated through the business idea of online pharmaceutical mart to serve millions of consumers across the community at large, and those are as follows:

• Ease of access: The said business idea of building an online pharmaceutical mart will be beneficial for the consumers and patients to access thousands of stores by a mobile application or website as per their preference and buy medicines delivered right to their homes.
• Transparency: With the online mode of doing business, it will help to keep the transparency of all transactions made, validity, reviews, and policies. This will create a positive impact and perception on the mind of customers which may lead to high return customers and customer loyalty (Massa et al., 2017).
• Cost-effective: The prime idea of the business model to keep it cost-effective for both the parties, i.e. customers and organization both. For the organization's outlook, it does not need any physical establishment to run its business or employees to work. Perhaps, it will operate its business via online and all of its employees and customers can communicate over the internet proficiently. This will save cost for both customers in terms of avoiding all middlemen involved and for the organization, it will help omit office rent to run business.

Business Canvas Model

Creating an effectual business model is essential to ensure its effectiveness in the real business world (Foss & Saebi, 2018). For this particular business idea, the business model would be:

• Vital partners: Associating with local chemists, pharmacies, and medical stores to provide a smooth supply chain of products.
• Vital resources: An effective website domain, well-functioning server, potential web designers and content curators, customer support employees, and shareholders of the business.
• Market segmentation: the market segment would be based on demographics and behavioural segmentation approach. Ranging from customers 12 to 75 years old and buying activities and preferences of consumers.
• Channels of communication: The key channel of communication would be via email, telephones, chatbots, mobile apps, and telegrams based on consumers choice and preference.
• Cost structure: Initially the investment cost will be a minimum of building a website, purchasing server, artificial intelligence, maintaining a domain, and associating with sellers. After the business begins growing, the investment shall be increased through return of investment or ROI.
• Revenue flow: With the anticipated business model, the revenue flow will be high as per the market conditions and consumer’s emerging demand. The revenue stream will be on a continuous flow with a low chance of shrink or decline.

Inter-Relationships of Business Model Elements

Every element of the said business model is crucially inter-related with each other. For example, to place an order and chose items from thousands of stores and millions of products, customers would interact via the website and process all required data to the server. Now, the customer support employees will help clients withing clarifying their queries, issues, and other neds. The artificial intelligence system will help assess the site visitors’ activities over the website and based on the behavioural perspectives, the marketing team would develop marketing campaigns based on the findings. All the sellers and retailers will be inter-related with the business organization to operate business mutually. Thus, this indicates that every element of the business model have an effectual inter-relationship to execute the business positively with a motive to earn maximum revenue in context to the current market situation.

Critical Success Factors

Concerning any business idea or model, it is essential to assess the critical success factor to prevent any consequences that would lead to business collapse or loss negatively (Clauss, 2016). To analyse the critical success factor of the business idea, the following are the factors that need to be considered important:

• Managing the database: With an evolving customer base, sellers, retailers, shareholders, and products, it would be challenging for the organization to manage the vast database effectively. Thus, it is essential to ensure the database management to be handled by potential teams or systems and constantly update the information to evade any negative consequences.
• Relationship with the customer: This is the most vital factor of critical success factor, as, for the customer, the whole business will be depending (Clauss, 2016). Maintaining and generating a healthy and solid relationship with every customer shall help the business to grow and create a positive impact on the society and market (Clauss, 2016). Hence, focusing on improving and maintaining a good and lasting relationship is vital for a long-term business association.

Identification of Risks and Assumptions

Identifying risks and assumption is important before initiating any business idea or process. Relating to such, the following are the identification of business idea:

• Issue of database assessment: Possibly, there might be chances of risks or issues assessing the database of the online medical mart business model. As due to server issues and breakdown of electronic technology, it is been assumed that there are possibilities of issues evaluating the database effectively. Thus, it is crucial to identify and risk and make a substitute plan to tackle the issue positively (Evans et al., 2017).
• Lack of accessibility to telecommunication: It has to be assumed that there might a possibility of access to telephones or mobiles as consumers who fall below poverty line might face challenges to place an order to access the online medical mart. Due to poverty reasons, consumers might end up losing hope and expectation, in such a case, having an alternative plan for the identified issue would be beneficial to solve.

Overall Feasibility

It has been identified that the overall feasibility of the business is profitable and have a promising future ahead. Since the online market place and e-commerce businesses are booming rapidly, it is assumed and expected positively that this business model will work extremely well in the market (Evans et al., 2017). Concerning the recent market situation, the business model will be a big hit if it is implemented accordingly and with a well-planned strategy and action plan. The business model is cost-effective, high demanding, ease of use provides transparency, and customer-centric. Hence, the overall, feasibility of the business idea and model is effective and has the potential to emerge at the nearest time possible.

Conclusion on Idea Generation and Business Model Development

Generating a business idea is important for improving a business; however, it is also crucial to note that making a sturdy business model succeed the plan effectively. With the business idea generation and formation of a business model, it has been understood that the online medical mart business model has the potential to perform well in the market. As the market is hit by a gigantic health crisis, implementing g or initiating this business model would help acquire a huge customer base, generate demand, and fulfil the societal need positively. Thus, it would be beneficial for the business as well as for new business launch to implement the generated business idea and model to grab the opportunity and maximize profit enormously.

References for Idea Generation and Business Model Development

Clauss, T. (2016). Measuring business model innovation: conceptualization, scale development, and proof of performance. R&D Management, 47(3), 385-403. https://doi.org/10.1111/radm.12186

Evans, S., Vladimirova, D., Holgado, M., Van Fossen, K., Yang, M., Silva, E., & Barlow, C. (2017). Business Model Innovation for Sustainability: Towards a Unified Perspective for Creation of Sustainable Business Models. Business Strategy and The Environment, 26(5), 597-608. https://doi.org/10.1002/bse.1939

Foss, N., & Saebi, T. (2018). Business models and business model innovation: Between wicked and paradigmatic problems. Long Range Planning, 51(1), 9-21. https://doi.org/10.1016/j.lrp.2017.07.006

Geissdoerfer, M., Morioka, S., de Carvalho, M., & Evans, S. (2018). Business models and supply chains for the circular economy. Journal of Cleaner Production, 190, 712-721. https://doi.org/10.1016/j.jclepro.2018.04.159

Massa, L., Tucci, C., & Afuah, A. (2017). A Critical Assessment of Business Model Research. Academy of Management Annals, 11(1), 73-104. https://doi.org/10.5465/annals.2014.0072

Wirtz, B., Pistoia, A., Ullrich, S., & Göttel, V. (2016). Business Models: Origin, Development and Future Research Perspectives. Long Range Planning, 49(1), 36-54. https://doi.org/10.1016/j.lrp.2015.04.001

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