Importance of Innovation in the Consumer Goods Industry

Discuss About The Designing Business Models Similar Strategic.

The customer or market problem is related to issue faced by the organization, due to which, enabling innovation is essential for facilitating the production and enhance the quality of products and services too. Collaboration and communication at work are considered as important aspects of performance indicators to manage unique selling and promoting innovation and creativity all throughout. The different aspects of the change in the functioning of the business are supported through the generation of constructive ideas through brainstorming or fishbone analysis. It helps the organization to bring in progression in its systems of the business.  

The report is aimed at understanding the capabilities of bringing in innovation sin the consumer goods industry to maintain their sustenance in the markets.  The generation of an idea for a pen structured water purifier has helped the industry in supporting the needs of the customers who goes round the globe. The purifier is portable and informs the user of the salinity or the heavy metal contents in the water.  Identification of the needs of the customers has helped the industry to bring in changes in the line of products through continuous innovation. The continuous innovation of the business is backed by the generation of the business idea, which helps in coping up with the needs of the customers in the business.

The customer or the market problems that might be faced by the industry while bringing in the product in the market is to promote the same and to convince the people to make a buy of the product based on the utilities (King  & Baatartogtokh,  2015). The different issues that might be faced by the industry while marketing the product is due to the lack of identification of the target customers of the business and the volume of the products that are required to be manufactured to suffice to the need of the customers in the market. To maintain a sustainable position in the market, disruptive innovation can administer the business functions through use of artificial intelligence and machine learning for enhancing the brand experiences and influence their buying behaviors too (Pisano,  2015). This would create an entirely new market and value network for displacing the existing market and value network, thereby attracting more customers and gaining more profit in business. The utilization of technologies has created an impact on the way the business organization can communicate with the other organizations and engage the employees altogether to facilitate innovation procedures. On the other hand, the availability of the key resources that is required for undertaking the venture is another important factor that affects the production and the marketing of the pro duct by the industry (Wallin,   Chirumalla & Thompson,  2013).

Challenges Faced by the Industry in Marketing their Products

Resolving the issues that are faced by the industry while undertaking their activities helps in the promotion of the smooth functioning of the businesses. On the other hand, the identification of the risk factors and thereby planning their mitigation will be helping the organizations in the industry to adhere to the innovation and the new business idea. Mitigation of the different factors that affects the functioning of the business will be helping the same to bring in improvements in the system and the performance of the same in the market.

The new idea that is generated by the industry is aimed at sticking on to the concept of continuous innovation based on the needs of the customers.  Idea generated by the industry relating to the pen structured water purifier is due to the identification of the needs of the traveler and the issues that are faced by the travelers while adapting themselves to the water in the new places. The pen structured water purifier is designed to purify the water and measure the rate of toxic elements in the same, which will be helping the traveler or the potential customer to understand the edible nature of the fluids that are consumed by them. It will be facilitating the needs of the customer through the provision of a portable filtering device that will help them in regions where there are issues relating to the purification of the fluids.

The nature of the disruptive innovation enables use of artificial intelligence to enhance the functioning of the purifiers and thereby helps in bringing in changes in the systems of the business as per the needs of the customers (Osterwalder et al., 2014). The product that is offered by the industry is based on the innovation depending on the needs of the customers to carry a portable purifier. It can be taken as a digital personal assistant, which will be assisting the customers and facilitating the same with the knowledge of the edible nature of the fluids that are consumed by the customers while traveling to distant lands (Reinhardt,  2013).

On the other hand, the identification of the different issues that might be faced by the industry while developing the products as per the needs of the customers might be affected through the resourcefulness of the industry to cope up with the demands of the customers (Joyce & Paquin, 2016). The inclusion of the Ph detectors in the devices and the utilization of potassium permanganate, which is reusable in nature, have helped in the development of the product. However, the low availability of the Silver ion tablets is comparatively less, which might affect the productivity of the industry in the market. The industry’s adherence to the innovative technologies has expanded the scopes of business in the international markets (Dudin et al., 2015). The identification of the needs of the potential customers, especially the travelers, will be helping the industry to bring in positive changes in the systems of the products and their offerings in the market. The innovative product will be helping the industry to grow rapidly in the international markets.

Disruptive Innovation in the Consumer Goods Industry

Osterwalder and Pigneur model is used to manage value proposition and ensure creation of products and services that the customers actually want (Osiyevskyy & Dewald,  2015). According to Osterwalder and Pigneur  (2013) , the business model canvas is designed as a strategic management and lean startup tool to develop or document the existing business models and ensuring disruption of the existing market conditions to promote innovation and creativity for the industry. The visual chart presented as the business model canvas describes the value proposition or value offered through the selling and distribution of products to the customers (Corsi & Di Minin, 2014). It also include the organizational infrastructure, culture and finances to adapt to the changing needs and requirements of the customers, furthermore aligning the business activities through the illustration of potential tradeoffs (Cortez,  2014). Often the competitors could prevent successful management of disruptive innovation by the industry and this might create issues to penetrate the new markets and transform into established markets (Osterwalder et al., 2014). 

The different success factors of the new idea is based on the identification of the needs of the customers relating to the purification of water and the manner in which the unhealthy toxins can be removed and make the water fit for meeting the purpose of the customers (Christensen, Raynor & McDonald,  2016). The success factors of the business are dependent on the innovation that is aimed at sufficing to the needs of the customers, especially the travelers. On the other hand, the innovation made by the industry will be helping the same to sustain in the international markets through the accommodation to the needs of the customers. The product will be helping the customers to identify the modifications and the manner in which the product will be helping the m to judge the toxicity of the fluids that are consumed by the same (Muhtaroglu et al., 2013).  The critical success factors have helped in reinventing or innovating the new line of products based on the needs of the customers which will be helping the industry to sustain in the international market structures.

The feasibility of the business idea is identified through the steps that are undertaken by the industry that facilitates the continuous innovation in the products developmental process (Avital et al., 2014). It helps the product to stand out to be unique in the market. Although, the idea of a portable filtering device that is generated by the industry is derived from the previous idea; however, the inclusion of a Ph level tester has helped the product to identify the different toxins that are present in the fluids consumed by the customers. It has helped the industry to bring in changes in the devices resulting to its sustainability in the international markets. The feasibility of the idea is based on the understanding of the needs of the customers and thereby facilitates the same to meet the purpose.

Conclusion

Therefore, from the above analysis it can be stated that the proper identification of the needs of the customers has helped in bringing forth innovation in the product, portable filtering device. The changes in the device are based on the constructive business idea and the assessment of the same as per the market dynamics. The business model canvas has helped in enumerating the different sustainability factors of the products while balancing with the needs of the customers in the market

References

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Osterwalder, A., & Pigneur, Y. (2013). Designing business models and similar strategic objects: the contribution of IS. Journal of the Association for information systems, 14(5), 237.

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Pisano, G. P. (2015). You need an innovation strategy. Harvard Business Review, 93(6), 44-54.

Reinhardt, U. E. (2013). The disruptive innovation of price transparency in health care. Jama, 310(18), 1927-1928.

Wallin, J., Chirumalla, K., & Thompson, A. (2013). Developing PSS concepts from traditional product sales situation: the use of business model canvas. In Product-Service Integration for Sustainable Solutions (pp. 263-274). Springer, Berlin, Heidelberg.