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 Since the pandemic began, the toy industry, like many others, has
changed tremendously. Hamleys is one such company which has faced
huge losses due to decline in the sales.
The reason behind the changes we've witnessed is the shift in consumer
values because of the pandemic. The decision taken by parents regarding
toy purchases are now impacted by:
• the need for toys that children can play with only at home
• Toys for families to enjoy together
• Toys that promote science and technology education
• Priority of environmental and sustainability issues
• the need for anxiety alleviation
• reliance on streaming at home, with less attention paid to outside
entertainment
One innovative solution Hamleys may consider is the manufacturing of
STEM (Science, Technology, Engineering, Math) toys.

WHY STEM TOYS?

STEM toys promote analytical thinking and creativity among children
and provides hands on experience to them. They keep them engaged as
these toys teach them live lessons more than just memorizing facts and
figures. They give children broader knowledge of concepts and enhance
their thinking capacities. Playing with STEM toys can help children
develop their innate curiosity.

Apart from improving their fine motor skills, they also help children gain
confidence in their physical and mental abilities. For example, creation
of sensors or chips through simulations that will arouse their interest the
newest tech field, exploration of solar system through visualizations, 3D
technology printing design tools, etc.
As Hamleys moves into the digital domain, all the toys will be available
on the E-commerce websites. This makes it accessible to everyone in
different geographical locations and to customer segments. STEM toys
may assist many children with their learning when they are unable to
attend school.
They also provide relaxation to parents who are under the stress of
homeschooling. This innovation will help Hamleys sales grow as the
demands for these toys will be high across the globe.

Due to Covid-19 outbreak, every task or work is now performed online,

beginning with Work from Home to Online classes for children. As
children attend their classes online, it strains their eyes and might want
to learn certain concepts of some subjects in a different manner. STEM
toys will play a vital role in this scenario. As children invest their time
to arrive at a solution, this not only enhances their cognitive skills it also
enhances many valuable skills that children will remember throughout
their lives. These toys give youngsters plenty of opportunities to think
critically, assess an issue, and devise the best method or solution.

WHY HAMLEYS S.T.EM. TOYS?

Hamleys provides an online demo and guides children in the first step to
arrive at the solution. This will boost confidence and encourage children
to use these innovative toys. Hamleys employees are keen to engage their
customers with online demo sessions. Hamleys stands out and shows
how important Customer Relationship is for them. This innovation is
also adding to the value proposition of the company by engaging
children in education-based learning, keeping parents’ tension-free as
their children are occupied with toys that keep them engaged their skills.

The type of Innovation Hamleys is into: Sustainable-Incremental. As

Hamleys is a well renowned brand and due to pandemic, the sales and
profits have declined, hence Hamleys is currently trying to sustain itself
 in the existing market with their innovation and by making incremental
changes, they want to ensure their sales increase overtime though they
are facing difficulty currently.

Conclusion:
Hamleys company should invest in innovation for STEM Toys as the
market is rightly advancing towards such toys. The boom in technology,
the introduction of new job roles, the support ecosystem for innovation
and entrepreneurship, the incentive for invention, etc. provide children
an opportunity to invest in new skills, thus incentivizing the parents to
opt for toys that aid their children’s holistic growth. Hence, Hamleys
must not lose any chance that will push their marker outreach and invest
in innovation for STEM toys.

3. Evaluating performance of a digital business

3.1 Calculate the two metrics

1. Bounce Rate: As Hamleys has now newly moved digital it needs to have a
record of people who have visited the website but haven’t purchased
anything and try to figure out the reason. This will Hamleys understand
what rectifications need to be done from their end and get a clarity on the
customer’s demand.
2. Customer Satisfaction (CSAT): As mentioned that Hamleys has now moved
digital it needs to assess customer contentment and how satisfied are the
customers with its services and products that are now being delivered
through E-commerce channels. It is calculated by: Total number of positive
feedback customers/ Feedback received from all customers.

3.2 Write your inferences based on the calculations made above and summarize the
performance of the platform
1.
• Average Revenue per transaction: Sales per month/Total number of
transactions
• % of repeated transaction: Number of repeated transaction/ Number of
transactions
Month January February March April May
Average revenue per
transaction 34.6021 53.569 38.889 36.735 35.165
% of repeated transaction 30.0% 32.0% 31.0% 31.0% 30.0%

Average revenue per transaction

60

40

20

0
January February March April May

% of repeated transactions
33%
32%
31%
30%
29%
January February March April May

2.
• Average revenue increased in the month of February from 34.6(January) to
53.6, it later decreased in a constant rate in the coming months from March
to May.
• The % of repeated transactions increased in the initial months from
January to February and later decreased in a constant rate in the coming
months from March to May.
3.Summary:
The overall performance of Hamleys is good, based on the performance metrics:
sales, number of positive feedbacks, has increased gradually and has later declined
in a constant rate. The average numbers of pages visited, and average time spent
on site has increased drastically over the months which is a plus point for Hamleys
as it is keeping its customers engaged. Hence moving into digital has helped
Hamleys grow and will help improve its performance and services to its customers
in the upcoming months.