DI Individual Assignment

8/20/2019 DI Individual Assignment

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DIGITAL INNOVATION

INDIVIDUAL ASSIGNMENT

Submitted to:

Prof. Raj Gururajan

Submitted By: Satyajit Behera

Roll. No.2011IPM093

Section: A

TERM-VI, IIM INDORE



Contents

1. INTRODUCTION .............................................................................................................................. 2

2. THE INNOVATION ........................................................................................................................... 2

3. BUSINESS MODEL ........................................................................................................................... 2

4. COMMERCIAL SUCCESS .................................................................................................................. 3

5. RAISING OF FUNDS ......................................................................................................................... 3

6. RISKS ............................................................................................................................................... 3

7. TIME LINE ........................................................................................................................................ 4

8. COST-BENEFIT ANALYSIS ................................................................................................................ 4

9. MARKETING COMMUNICATIONS PLAN......................................................................................... 4

BIBLIOGRAPHY ........................................................................................................................................ 5

PLAGIARISM REPORT ............................................................................................................................. 5



1. INTRODUCTION

In the present times, almost every consumer has a smartphone. Everyone is looking for a

customized and personalized experience. For any customer only one thing matters: Convenience.

Most of the customers at present are looking for the most desired product which should be available

to them at the right time in the right size and colour. In a retail shopping experience, data is collectedonly when a customer completes a purchase. Whereas if the customer decides not to buy anything

and only browses through the store then retailers fail to collect any data from them. So, by

implementing the right technology which helps them to track and understand their customers, off-

line retailers can also compete with the e-commerce market. Also at the same time, this technology

can help e-tailers who are planning to get into brick and mortar to provide a seamless shopping

experience. (Salmon, 2015) By adopting this technology retailers can become and provide an Omni-

channel experience to its customers. Becoming Omni-channel is the need of this hour. Companies

especially retailers are toiling hard to integrate their online and offline stores/services so that

customers have a seamless shopping experience.

2.

THE INNOVATION

The solution that we will be providing is for the offline stores. It involves the digitalization of

catalogues that display the information of products kept in the store. Each product will have tablet

besides it that will have the information of the product. Besides having information of the product,

the tablet will provide information about other specifications like whether there are colour variants

available of the product or whether there are any design, size variants of the particular product. The

main objective of this innovation is to make the whole offline store a digital store. The complete

service will be digitalized. The main objectives of the innovation is to ensure that offline retail stores

who also have an online store can combine both the service and make it an Omni-channel experience.

When the customer browses information about the product, the retailer can then create a cookie ID

of a customer that follows them their online and physical store visits, no matter where they begin

their journey, or whether or not they make a purchase.

3.

BUSINESS MODEL

Retailers, Big Retailers

like future bazaar,shoppers stop

Online retailers like

Flipkart, Amazon, and

Snapdeal etc.

Also some kirana stores

situated in metros.

It will complete

transformation of stores.

Training of employees

regarding the use of

technology.

Proper Installation of so

many technological

Equipments

KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITION

More Options to the

customers.

Customized offerings to

the customers.

Compare prices and other

attributes before buying

Seamless shopping

experience



4. COMMERCIAL SUCCESS

We can utilize a variety of methods for ensuring the commercial success of the innovation. By

using the existing resources we can market our innovation. Since our innovation is completely

technology based so we will try to target our potential customers by mostly using technology and

internet only. There are a variety of methods available these days but following are the three mainways by which we can market or commercialize our innovation.

i) Targeted E-Mail Campaigns

This type of method is the most effective way of reaching out to your potential clients.

Existing as well as new customers can be reached through this method.

ii) Social Media Marketing

Social Media Marketing are the best way to reach out to large number of customers.

Facebook and twitter are the two most significant ways to reach out to your customers.

iii)

Search Engine Optimization/AdvertisingSEO and SEA have been the driving force for all e-commerce companies. Companies have

been thriving on the advantages and benefits these services provide them with. We will

have a website that will give the demo of our product that we are offering. So to lead

potential clients to our website we will use SEA and SEO. (Deloitte, 2015)

5.

RAISING OF FUNDS

Funds are the most important part of any project. This innovation also requires funds for its

production, marketing and implementation. Since the company is a public company, what the

management can do is to ask for funds through public. Whenever a company starts selling its shares,people begin to speculate that some big investment is going to happen so they start buying shares. So

the company should start selling its shares and hence it will help them in raising funds for the project.

6.

RISKS

Any innovation comes with a lot of risks. Manufacturing any product has a lot risks associated

with it. A product cannot be completely risk-free. So naturally this product, the innovation that

we are suggesting also comes with some amount of risks.

i) One of the most important risks the innovation has is that it can be easily replicated

by any other company. The innovation is not like a complete foreign technology. It is

more of using various technologies to innovate in your process or service. So another

company can easily replicate the procedure that we follow and hence a similar or a

better product to clients.

ii) The second most important risk is that the innovation doesn’t necessarily guarantee

instant success that is the revenue generation might not increase instantaneously.

The investment is more of a service innovation so it will help in building customer

trust and in the long run will help in raking up profits.

iii)

The third risk that this innovation faces is that of the customer perspective. Although

with the introduction of this technology it is bound to increase the service efficiency,

but we can hardly guess how the customers are going to accept the change. (Wong,

2011)



7. TIME LINE

1-3 Months 2-5 Months 6-10 Months 1 Year

Developing the

technology

Reaching out to

potential clients and

customers

Training of the

employees

Final roll out

8.

COST BENEFIT ANALYSIS

9. MARKETING COMMUNICATIONS PLAN

Marketing is a very crucial part of any product. Without marketing a product or service cannot reach

to the desired customer or consumer. So marketing communications is the way by which companies

try to inform, persuade and remind consumers and clients- directly or indirectly – about the products

and brands they sell. (Kotler, 2012) The marketing communications mix consists of various modes of

communication. Some of the modes that can be adopted by us to reach out to potential customers

are:-

i)

Advertising: - Through extensive use of print media and broadcast media.

ii) Sales Promotion: - A variety of short term incentives to encourage trial or purchase of our

product.

iii) Events and Experiences: - Company-sponsored activities and programs designed to create

daily or special brand-related interactions with consumers.

iv) Public relations and publicity: - A variety of programs directed internally to employees of

the company or externally to consumers.

v) Personal Selling: - Face-to-face interaction with one or more prospective purchasers for

the purpose of making presentations, answering questions, and procuring orders.

Activity Cost Drivers Cost Level Benefit Drivers Benefit Level Overall Impact

Digitalization

of Stores

Equipment High Improved

experience

High

Highly

Beneficial

Training Costs Medium Ease of operations Medium

Maintenance Medium Efficient service High

Brand

Development

Advertising High Larger Varieties Medium

Highly

Beneficial

Promotions High New segments High

Tablets Medium Higher revenues High



BIBLIOGRAPHY

Deloitte, 2015. Omni-channel retail, s.l.: Deloitte.

Kotler, P., 2012. Marketing Management. s.l.:Pearson.

Salmon, K., 2015. The core of omni-channel retailing, s.l.: Manhattan Associates .

Wong, M. C. S., 2011. The Risk of Investment Products: From Product Innovation to Risk Compliance.

s.l.:World Scientific.

PLAGIARISM REPORT

DI Individual Assignment

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