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 9 marks

2 Type of digital innovation Text 10 marks

3 Calculation of metrics and drawing inferences Text 21 marks

Project Maximum Marks 40 marks

1. Updated business model canvas for digital business

Your Add the image of your business model canvas here
Answe
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2. Type of digital innovation and its justification.

Your Answer Write your answer here
There are two types of digital innovation at Hamleys:
1. Integration of Inventory Control and Order Fulfillment
System:
The most important job that Hamleys required to perform was the
integration of ecommerce with the existing Inventory Control and
Order Fulfillment System. This was important because the
product ordered through website should be available at the
warehouse/retail stores as well for delivery, meaning the product
should be in stock.
2. Digital Experience:
As explained in the case, Hamleys provided a unique, fun and
indulging experience at its stores. Hence, it was important for
Hamleys to offer a similar kind of experience at its website aswell to
fulfill and be in-line with its values.
Outcome: Integrated Customer Experience to meet the needs of
consumers and establish the brand in their personal identity.
3. Hamleys enabled Smart Retail ecommerce solution:
 To provide the online customers with comprehensive and
essential service
 Improving the store experience. Make energy use more
efficient through continuously monitored thermostats and
lighting Track.
 It is easier to track customers and their buying
patterns.
 This helps in upgrading the merchandise placement strategies.
 Detect. It is easier to detect inventory by using smart
shelves that help identify when inventory is running low.
 Digital Infrastructure. To enable Placing the order is easier.
The technology sector is constantly evolving, Hamleys has the potential
to develop and introduce new applications, channels, and facilities
taking
advantage of the current retail world scenario. Microsoft Dynamics 365
which is Hamleys Enterprise Resource Planning system used to manage
day-to-day business activities, was integrated, along with another
partner
solutions including payment providers which
allows businesses to accept ecommerce, mobile, and pointof-sale
payments.
4. Benefits for Hamleys in view of Value Proposition:
Online platform provides customers an interface to explore and select
products from the comfort of their homes.
Shopping is easier and more fulfilling, which in return creates customer
loyalty and increased revenue.
Order management is efficient as customers can view which products
are in or out of stock. Based on the data, the store can replenish the
inventory. Thus, enhancing the
company’s warehousing and fulfillment capabilities.
Growth and flexibility, allowing Hamleys to integrate
new channels, services, and other functionalities.
Through its international facility, Hamleys can achieve
better growth.

Types of Innovation:
 Sustainable – Through online medium, there will be
reduction in store costs, paper usage would be reduced as
customer can receive soft copy of their bill.
 Incremental – Since the retail stores already exists,
implementing innovation for digital platform require
small improvements on the existing products, services
and processes.
3. Evaluating performance of a digital business

3.1 Calculate the two metrics

1. Total no. of feedback received: To check negative as well as

positive feedback to know about the area of improvement for
Hamleys digital platform.
2. Sales & Revenue: To check the Return on Investment.
3. Bounce Rate: For the website visibility.

3.2 Write your inferences based on the calculations made above and summarise
the performance of the platform

  January February March April May

Average Revenue Per
Transaction 34.6 53.6 38.9 36.7 35.2
% of repeated
transaction 30 32 31 31 30

Inferences from the above results:

1. Average revenue per transaction is constant except for February.
2. Percentage of repeated transactions is decreasing.

Summarizing performance of platform business over 5 months

1. Improved customer satisfaction: Customer don’t want to wait
while a store executive searches through the storeroom whether
an inventory is in stock. Online platform fills this gap by instantly
displaying the items in stock and provide information about out
of stock items and the ability to intimate the customer when the
product will be in stock. The ease of using the digital platform
provides customers more satisfaction.
2. Automation of inventory control: Through the integration of
digital platform with existing system, Hamleys has better control
of inventory management. Electronic inventory control can
eliminate over-ordering and under-buying by referring to store’s
sales history.
3. Keep track of margins: The inventory control system can
suggest pricing and markdowns within the pre-set parameters and
track margins based on the prices.
4. Improving forecasting: Hamleys can further enhance the
capability to integrate additional applications and services. This
will help in better forecasting. The solution is capable of being
rolled out across different geographies, so that Hamleys reach
expands even further.