COURSE: DIGITAL BUSINESS INNOVATION

PROJECT: HAMLEY’S

Instructions for the submission:

● Please maintain the following: Font - Times New Roman, Font Size - 12, Line
Spacing - 1.5

S.No. Assessment Submission Marks

Format

1 Value creation through business model canvas Image 22 marks

2 Digital innovation process Text 18 marks

3 Evaluating performance of a digital business Text 30 marks

Project Maximum Marks 70 marks

1. Updated business model canvas

Your Add the image of your business model canvas here

Answer

2. Digital innovation process

Your Answer Write your answer here

1, The suggested solution
Developing an Interactive connected platform - online, through an app and toys.
● The major challenge that parents face during the pandemic and post-
pandemic scenario is that kids are spending a lot of time at home and require
constant interaction.
● To address this issue Hamley can develop an interactive
connected online platform by integrating Virtual Reality and
Augmented Reality, with a subscription as well as an open source content
development option. Here, the producer can be a
consumer and vice versa.
● The customers can visit the website take a virtual tour of the store and do
the purchase as they move. They can also use the brand
mascot, develop content and stories around it.
● Hamley's can introduce a referral option to increase its reach, as the target
group is a close-knit audience who frequently interacts with each other. This will
result in the same side network effect as well as a cross side network effect.
● These STEM (Science, Technology, Engineering, and
Math)/STREAM (Including Arts) based toys will help kids to develop key skills and
will make education exciting. Resultantly, this will provide value to the target
group.
● Additionally, the interactive platform can be used to co-create and
collaborate with different brands who would like to participate in the endeavor.

2, Proof of concept

1. Bedtime Stories
- It's an innovative app that takes the idea of kids' storytelling and makes it
interactive.
● Designed for children up to the age of 12, it's based around story 'worlds',
spanning multiple genres, and has a vast amount of content that you can access.
● The App has a feature that lets you build your own story with your child,
making it as tailored to them as you want.

2.Wonderworks -
An independent toy store with three locations in South Carolina - has completely
reinvented its shopping experience.
● Using immersive reality, shoppers can explore Wonder Works flagship
location in the Belle Hall Shopping Center through an interactive virtual tour.
● Items marked with red dots open product videos while green dots link to
shoppable pages on the Wonder Works website. Store owner Christine Osborne
enlisted the help of H3 Photography to create the experience.

3.Value proposition of Hamley's

● This intellectual property in the form of a smart toy and the online platform
can be offered as a demo version in the store or online by way of interactive videos
 and content.
● These would-be high-quality products and solutions covering the whole
target segment.
● A new revenue stream via licensing and subscription fees will be created.
● There should be strategic shift from being a toymaker to an edutainment
provider.

4,The type of innovation

Radical Innovation : It's using revolutionary technology and a new business
model.
● This requires a lot of technological development and capability building.
● A whole new product category will be created.
● This will give Hamley's a competitive advantage and the overall value
proposition would go up considerably.

3 Evaluating performance of a digital business

3.1 Add the three metrics and reasoning behind selecting them here
1.Bounce Rate:
It indicates the percentage of the visitors who do not stay long on your website and
leave your site after visiting only one page. Mostly this is a result of the poor user
interface or website design issues like long page load times, delay in navigations,
and unappealing appearance. This
metric has considerably decreased in the last 5 months.
2.Conversion rate:
A measure of calculating the number of customers that make a purchase (sale
happens) after they visit the website and spend time viewing a product. It's directly
related to overall revenue metrics and represents actual sales. The conversion rate
has seen an upward trend from
January to May as sales number & the total number of visitors have increased
gradually.
3.NPS (Net Promoter Score):
 The total number of positive feedbacks has doubled from January to
May. This metric strongly supports the growth of the business. It helps in
understanding who are the promoters and detractors of your platform and gives
you an insight that Promoters will renew and grow with you.
It's important to understand that the cost of acquiring a customer is much higher
than the cost to cross-sell to an existing customer.
4. Average Revenues per transaction:
Average revenue per unit is the amount of money a company can expect to receive
from selling one unit of product. It's calculated the same way as average revenue
per unit by dividing the company's total revenue by its number of units sold.

3.2 Write your answer here

Month Average Conversion % of repeated

revenue per Rate (%) transaction (%)
transaction
(INR/unit)
January 34.6 2.5 30
February 53.57 2.62 32
March 38.89 3 31
April 36.73 3.5 31
May 35.16 3.5 30

INFERENCE

Average revenue per Conversion Rate (%) % of repeated

transaction transaction (%)
(INR/unit)
ARPU is decreasing from Higher conversion Stagnated growth.
February to rate means higher investment in
May. helps in revenue click through rate. marketing required to
forecasting for expand customer base.
subsequent months.
Effectiveness of User We need to
We should revisit our Experience (UX) aggressively pursue
target costing and efforts has increased. second sales to increase
opportunity for cross sell Lifetime Value metric.
exists.
Performance of the platform
● Average time spent on the website has amplified.
● Customer Engagement has increased as number of feedbacks improved.
● Traffic volume: swelling month-on-month.
● Fluctuation in sales, possibly due to marketing campaign success rates.
● Declining bounce rate signifies improved UX of the website.
● Increasing Retention rate as more and more consumers are
coming back for repurchase, indicating we are providing more value to them.
● Repeat customer rate as mentioned above has also improved.
● Session duration has amplified, showing positive consumer interest in the
different products and categories.
● Increased activity on the website has resulted in higher Pageviews.