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
2. Type of digital innovation and its justification.

Your Answer One of the innovative solutions which Hamleys can take up to counter
the challenges which pandemic posed is to go create a 3D-Online store
with presence of virtual assistants who can help the customers to tour the
virtual store and help the customers to buy the products based on your
requirements.

This concept has been used by multiple car-showrooms and hi-tech

automobile companies who provide a fully virtual tour of their stores as
well as their products. This enabled the companies to reach to much
wider audience as compared to their traditional offline reach.

This concept has not been used by any of the current competitors of
Hamleys and this will also enable Hamleys to bring a similar experience
to their customers which they offer offline at their retail stores, without
the need of customers to visit the stores physically. In this manner,
customers will be able to stay connected with Hamleys and enjoy the
experiential buying with sufficient safety.

This could be a disruptive innovation as this technology will be first of

its kind in the toys market and it will be an entirely new business model
which will be seen for the first time by a toy brand.
3. Evaluating performance of a digital business

3.1 Total Unique Visitors – Continuously increasing month on month. This

metric tells us if the website and the contents have been able to attract
newer customers over time. An increasing trend tells us that it is positive
reflection of the company’s digital innovation.

Revenue per transaction – This metric determines the average revenue

generated from each of the customer who is transacting at the site. The
continuous incremental value of this metric determines that the
customers find the online platform engaging and they are being
persuaded to have higher purchases.

Bounce Rate% - This metric determines how many customers are

navigating away from the website due to poor engagement. The
declining trend of this metric tells us that the visitors are getting highly
engaged and thus positively reinforcing that our online content is highly
engaging for the viewers.

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

months:
  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

Inferences: Conversion rates have been going up, ensuring that over
time, the rate at which viewers are actioning to transact in site is
increasing.
Average revenue per transaction, initially increased for 3 months and
then decreased. This signifies that as number of visitors increase to the
site and conversion rate improves, the value per purchase initially
increased and then decreased. This signifies in the shift of the purchasing
power and purchasing choices of customers.
Repeated transactions have steadily showed approx. 31% in the trend
which says that the repeated transaction is steady on the portal.

E-Store and applications will provide the ability to deliver better

customer experience.
Customers will now find it easy to identify products, related information
and reliable purchasing options.
Customer will be more engaged because of E-Store experience, customer
support service.
The organization has opportunity to expand global reach to different
geographies.
By digitizing the business, it will give more accurate and timely insight
of company’s performance.