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 collected
only 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, offline 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 Omnichannel 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
KEY PARTNERS
Retailers, Big Retailers
like future bazaar,
shoppers stop
Online retailers like
Flipkart, Amazon, and
Snapdeal etc.
Also some kirana stores
situated in metros.

KEY ACTIVITIES

VALUE PROPOSITION

It will complete
transformation of stores.

More Options to the

customers.

Training of employees
regarding the use of
technology.

Customized offerings to
the customers.

Proper Installation of so
many technological
Equipments

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 main
ways 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/Advertising

SEO 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)

ii)

iii)

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.
The second most important risk is that the innovation doesnt 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.
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
Activity

Digitalization
of Stores

Brand
Development

Cost Drivers

Cost Level

Benefit Drivers

Benefit Level

Equipment

High

High

Training Costs

Medium

Improved
experience
Ease of operations

Medium

Maintenance

Medium

Efficient service

High

Advertising

High

Larger Varieties

Medium

Promotions

High

New segments

High

Tablets

Medium

Higher revenues

High

Overall Impact

Highly
Beneficial

Highly
Beneficial

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)
ii)
iii)
iv)
v)

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

Sales Promotion: - A variety of short term incentives to encourage trial or purchase of our
product.
Events and Experiences: - Company-sponsored activities and programs designed to create
daily or special brand-related interactions with consumers.
Public relations and publicity: - A variety of programs directed internally to employees of
the company or externally to consumers.
Personal Selling: - Face-to-face interaction with one or more prospective purchasers for
the purpose of making presentations, answering questions, and procuring orders.

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