Innovation and Business Development of Wrinkle Free Clothes

Question: Discuss about the Innovation and Business Development of Wrinkle Free Clothes. Answer: Innovation and development are integral to the growth of the business organizations. The innovation can drive the business upwards and ease the business operations of the organization. The innovation refers to the development of new products and services which brings ease to the lives of the people. It can also denote to innovative technologies which can ease the business operations of the organization. The innovation process of an organization can increase the profitability of the organization as the companies can launch innovative products in the market and exploit its benefits. The implementation of innovative technologies can also assist in the business operations which can increase the efficiency and overall productivity of the organization (Rainey, 2010). In this regard, the present report presents a business pitch to the management of the business organization regarding an innovative product. The innovation of wrinkle-free fabric has a huge potential. In the present fast lives of the people, no one has the time to iron their clothes. The innovation can ease the life of the customers and a large number of people will be attracted towards the product as ironing is tedious job. Introduction to the Business Issue In the 21st century, the lives of the people have become immensely busy. The people have immersed themselves in their professional lives and have little time for their personal chores. In this situation, ironing remains as a tedious chore. Ironing is difficult; however, wearing crumpled clothes is unprofessional. As a result, there is increasing popularity towards the development of wrinkle free clothes. However, up to present, there are several issues in the development of wrinkle-free clothes as hazardous chemicals are used for the manufacturing process. The hazardous substance like formaldehyde is used for the manufacturing process; however, if they are leaked into the environment they pose potential harm to the human health. Other chemicals are highly expensive or do not have the same anti-wrinkling properties. Recently, there are a number of researches which focuses on the use of nanotechnology for developing wrinkle-free clothes. It has immense market potential (Piperopoulos,20 12). Proposed Innovation It can be critiqued that the ironing is a tedious chore and the people need clothes which require less or minimal amount of ironing. There have been number of innovations which have assisted the individuals in their daily chores; however, ironing is a basic chore which is required to be done by every person. A person cannot wear wrinkled clothes to the professional lives as well as to the other spheres of lives. The wrinkle-free clothes will ease the life of individuals as they will require doing fewer efforts and spending less time in the ironing which will be beneficial for the customers. The innovation will use nanotechnology for the development of the wrinkle free clothes. Benefits of Innovation People will desire clothes which are wrinkle free and that there dresses remains as shaped by iron throughout the day. The wrinkle free clothes provide wrinkle free and soft look fabric. The wrinkle-free finishes are commonly used in the textile industry to impart wrinkle-resistance by implanting cellulosic material on cotton fabric. The wrinkle resistant finish on the materials improves the wrinkle resistant properties of the fabric. The increasing demand for the pure cotton fabric has also driven the wrinkle resistant fabrics. It is also a determining factor in the perceived quality of the fabric. In the present market, there are several types of products such as shirts, T-shirts and pants which need wrinkle-free fabric for increasing their quality factor (Clark, Osterwalder Pigneur, 2012). This factor is in in line with the changes in the lifestyle, consumer requirement and the growing awareness of the customers towards natural clothes. However, wrinkles diminish the perceived qu ality of the product. The wrinkles occur when the fabrics are compressed such as washing or wearing them for prolonged period. Developing clothes which a person can wear anytime or anyplace will increase the perceived quality of the clothes. The people will find application of the clothes in different settings such as travelling or adventure sports like hiking or swimming. The organization can develop wrinkle-free clothes and sell them to the garment manufacturing companies to obtain huge amount of profits. The organization can also make collaborations with large garment manufacturing companies to supply them with wrinkle-free clothes. Such collaborations will provide stability to the company and it will increase the profitability of the organization. The company needs to start the commercial production of these clothes and make negotiations with garment supply manufacturing companies in order to make it a viable successful business plan (Fields, J2013). Timeline In the above section, a business proposal has been provided for the commercial production of wrinkle-free clothes. In order to make the innovation as a viable business model, the company needs to take several steps. The company needs to develop a business plan, obtain investment from the potential investors and create a product prototype of the product. The company will also require licensing and intellectual property rights from the copyright holders so that it can work on the technology. It will also require buying infrastructure and hiring employees for the running successful operations. It also needs an attractive marketing strategy and distribution plan. The company needs to develop a timeline for starting the business. It is estimated that the business will need one year period for implementing the business and running successful operations. Action June, July, August September, October, November December, January, February March, April, May Approval of Business pitch Development of Product Prototype Budget approval Acquisition of clients Acquiring human resources Starting commercial production of the product Strategic Response Ranking of Strategic Options The strategic response of manufacturing facility can be used for the present case. In the present case, the organization can use the different business models. There are four types of business models namely, manufacturer, distributor, retailer and franchise business model. In the manufacturing business model, the business organization takes raw materials and create a product and assembles pre-made components to manufacture a product. The manufacturer can sell the products directly to the customers or outsource sales to another company. The distributors refers to any business that purchases the products directly from the manufacturing organization and resale it either to the public or the other retail outlets. The retailers refer to those organizations which directly sell the products to the public (Akdeniz, 2015). The retailers may have a physical presence or an online presence. The franchise can be either a manufacturer, distributor or a retail organization. The franchise is a type of license which a party acquires to have access to the businesss propriety knowledge, processes or trademark and allows the business to sell the product or service in the name of that business. Option 1 (Manufacturer) Option 2 (Distributor) Option 3 (Retailer) Option 4(franchisee) Benefits Signigficantly less competition due to high investment requiements, Intellectual property benefits from obtaining licenses of the invention Less capital requirements, Lower risk due to fluctuating customer requirements One of the major benefits is large number of customers. Therefore, low dependency on customers If the organization will take the franchisee of the organization, it can create positive brand image of the company Cost Initial set-up cost will be approximately 50,000 $ AUD Initial set-up cost will be approximately 30,000 $ AUD Initial set-up cost will be 20,000 $ AUD Initial cost of the set-up will be 20,000 $ AUD Time If the company will independently conduct research and development of the innovation, it will require long period of time (Cafferky, 2010) Low time requirements as the organization only needs to obtain distribution rights Low time requirement Low time requirement Risk High Low low medium Recommended Strategic Option From the analysis of the above options, it is recommended that the organization develops a manufacturing plant for designing the wrinkle-free fabric. Although the initial cost of setting up the plant will be higher, the organization will need to obtain higher benefits from the production process in terms of profitability. The cost of the production plant will involve the cost of raw materials, cost of setting infrastructure, cost of hiring employees and research and development process. Moreover, the acquisition of basic prototype of the product will require investment regarding the intellectual property rights. However, once the company obtains the intellectual property right, it can curb the competition in the marketplace. With appropriate marketing strategy, the company can attract a large number of customers. The total cost of establishing the new project is determined in the below section: Initial cost of setting up plant 50,000 $ AUD Rent, insurance, marketing, licensing Variable cost 10,000 $ AUD Equipment, technology and fabric Total Cost 60,000 $ AUD Project Option Analysis In the present case, it is determined that a manufacturing organization will be developed for selling the product. There are two ways of developing a business model, either the business attains the customer knowledge and make products accordingly or firstly, the organization make products and sell them to the customers. There are several steps in developing a manufacturing business. Firstly, the organization should select a product category and focus on it in the beginning. In garment business, there are several product categories such as knit garment or woven products; the company needs to choose a single product category for the. The next step is to gather production requirements (Forsyth, 2013). It is difficult to make estimation requirements in the beginning; however, a rough number is required in the beginning. Later, this figure can be modified according to the budget and customer demand. The management also has to determine the number of production machines and other equipment . It is based on the production figure and the product type (Soorjoo, 2012). The next major step in setting up a garment factory is to determine the type of machines which will be most suitable for the manufacturing process. In the market, there are a large number of machines available; however, it is important for the organization to select the best machine for the manufacturing process. In addition to sewing or weaving other machinery are also required. It encompasses pressing tables, cutting machineries, boilers, power back-up and furnishing. Delivery of Recommended Solution In the above section the best business model for the organization has been selected. Additionally, the company requires factory space. The management has to decide regarding the space required for the machinery, office space and setting departments for the production process. The recommended solution can be delivered after the determination of manpower requirement, internal process flow and listing the suppliers of the organization. The human resource or the manpower resource is one of the primary resources of the business. It includes determining the number of staff members, supervisors and the workers. The company also requires operators and helpers to run the operations smoothly. In order to run successful operations, the company needs to develop a detailed process flow of an order. With the help of this plan, the company can plan hiring of the people. It is also important that the organization start working on finding reliable suppliers for the fabric and other raw materials (Bor oss, 2011). Conclusion It can be concluded that the wrinkle-free shirts are innovative product and require a unique business model. In this regard, the present report has taken the business model of manufacturing organization. The company needs high initial investment for setting up the organization. The return on investment is high in manufacturing organizations. Moreover, the company can also curb competition by acquiring the intellectual property rights of the product. References Piperopoulos, P.G. (2012). Entrepreneurship, Innovation and Business Clusters. Gower Publishing, Ltd. Boross, P. (2011). The Pitching Bible: The Seven Secrets to a Successful Business Pitch. CGW Publishing. Soorjoo, M. (2012). Here's the Pitch: How to Pitch Your Business to Anyone, Get Funded, and Win Clients. John Wiley Sons. Akdeniz, C. (2015). TOP Business Models: Examples of Most Effective Business Models. Can Akdeniz. Clark, T., Osterwalder, A., Pigneur, Y. (2012). Business Model You: A One-Page Method For Reinventing Your Career. John Wiley Sons. Cafferky, M. (2010). Breakeven Analysis: The Definitive Guide to Cost-Volume-Profit Analysis. Business Expert Press. Forsyth, P. (2013). Successful Pitching For Business In A Week: Teach Yourself eBook ePub. Hachette UK. Fields, J. (2013). The Ugly Truth About Wrinkle-Free Shirts. Retrieved 28 May 2017 from https://laundry.reviewed.com/features/the-ugly-truth-about-non-iron-shirts Rainey, D.L. (2010). Sustainable Business Development: Inventing the Future Through Strategy, Innovation, and Leadership. Cambridge University Press.