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 Answer Add the image of your business model canvas here

2. Type of digital innovation and its justification.

Your Answer Hamley's can devise a number of innovative solutions to counter the
challenges posed by the pandemic by creating a 3D-online store with the
help of virtual assistants who can help customers to tour the virtual store
and purchase products.

This concept has been used by multiple car showrooms and high-tech
automobile companies who provide a fully virtual tour of their stores as
well as their products. Due to this, the companies were able to reach a
much wider audience than they could through traditional offline
methods.

In addition, Hamley’s will also be able to bring a similar experience to

their customers that they currently offer offline at their retail outlets. This
will be without customers having to visit the stores in person. So,
Hamley’s customers will be able to enjoy experiential buying and stay
 connected to the company.

Toy brands will be able to adopt a brand new business model thanks to
this technology, which is a first in the toys market.

3. Evaluating performance of a digital business

3.1 List down two metrics that you are going to look at - along

with  appropriate justification for each of them.
Write your answer here

Total Unique Visitors – Continuously increasing month on month. We

can determine if the website and its contents have attracted new
customers over time through this metric. It is a positive reflection of the
company's digital innovation that the trend is increasing.

Revenue per transaction - This metric calculates the average revenue

generated by each customer transacting on the website. Customers are
being persuaded to make higher purchases by the continuous incremental
value of this metric.

Bounce Rate % - This metric indicates how many customers leave the
website after poor engagement. In this metric, the trend is downward,
which reflects the fact that visitors are becoming more engaged and thus
enhancing the quality of our content.

3.2 A. Calculate the below-mentioned metrics for each of the four

months:
1. Average revenue per transaction
2. % of repeated transactions
B. Draw inferences from the trends observed for each of the three
metrics
C. Summarise the performance of the platform business over these
five months; for this part of the question, you can include all the
relevant data points
Write your answer here
A.
ANSWER:
  Jan Feb Mar Apr May
Conversion
2.50% 2.62% 3.00% 3.50% 3.50%
Rates
Average
Revenue per 34.6 53.6 38.9 36.7 35.2
transaction
% Of Repeated
30.00% 32.00% 31.00% 31.00% 30.00%
Transactions
B. Inference :

Conversion rates are increasing, ensuring that over time, viewers

continue to transact on the site at an increasing rate

Increasing conversion rates ensures that viewers interact with the site
more frequently over time, resulting in more transactions.

The average revenue per transaction initially increased for 3 months and
then decreased. The value per purchase initially increased and then
decreased as the number of visitors rose to the site and the conversion
rate improved. Customers' purchasing power and choices are shifting,
indicating a shift in their purchasing power.

There has been a steady increase in repeat transactions. According to the

trend, repeat transactions on the portal have been steady at 31%.

 C. Summary:

Intelligent Retail’s website solution gave Hamley’s the ability to deliver

integrated customer experiences to online shoppers, mirroring – and even
enhancing – the in-store experience.

Online shoppers now find it easier to identify products, check stock and
information, place orders and feel more engaged with the brand. From a
business perspective, bringing the various channels together provides a
more accurate and timely insight into business performance across the
organisation. This includes orders and revenue, as well as stock levels
and replenishment.

In today's global retail landscape, Hamley’s has the ability to add

enhanced applications, services, and channels as the market and industry
evolve - a major advantage. With Hamley’s expansion into new
geographies, the solution can be implemented across those locations as
well.