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INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS SECTION SUMMER 2014 Name NetID Group Number: Website Link: Tutorial Details Time Spent on Assignment: Andrew Student Mkel739 15 http://infosys110groupxxx.blogspot.co.nz/ Tutor: Day: Time: Anastasia Tutor Saturday 10am 25 hours Word Count: 1421



New Zealands population levels are on the rise and in particular Auckland. According to Macpherson (2013), Auckland is the fastest growing region in New Zealand and at the year ending June 2013, Aucklands population had grown by 1.4%. To cop e with the population growth, the use of public transport must be encouraged. Our company believes that to help boost the use of trains and buses, we need to make the trip more enjoyable and to introduce an incentive to use public transport. We have come up with an idea run through an application on smart devices which provides entertainment and a rewards system. By offering incentives for commuters, we will hope to see a reduction In private car use and a rise in the use of buses/trains. Not only will public transport companies reap the financial rewards, but there would be a reduction in pollution, reduction in car accidents and the nation as a whole would save on building more roads to keep up with the demand.

As a company we want people to be happy to leave the car at home, and to make public transport a fun and rewarding journey.
3.2 Industry Analysis:

Industry: The app industry




Buyer power:


The buyer power in the app industry would be high. There are a huge selection of apps available for buyers to choose from. According to Jones (2013) at the end of November 2013, the Apple App store had just under one million apps

available, of these 62% were free to download.

Supplier power:


The supplier power of the app industry is low. According to Doesburg (2013) it is estimated that there is about 100-200 app developers in New Zealand alone. This means companies that are looking to get an app made for their company have the luxury of choosing the cheapest and the best developer for their app.

Threat of new entrants:


The threat of new entrants is high in the app industry. There are low barriers to entry, as long as you have the money, anyone can go to an app developer to build one.

Threat of substitutes:


There are many apps available, as previously stated; according to Jones (2013) there were just under one million apps at the end of November 2013 and growing by 138 per day.

Rivalry among existing High competitors:

Competition within the app industry is very high, Lessin and Ante (2013) state that 5 years after the app craze started the industry is now booming and that global revenue from app sales had expected to rise by 62% to $25 billion.

Overall attractiveness of the industry: Within the app industry there is a lot of competition. The buyer power is very high as there is a lot of apps to choose from. There is potential for apps to be very successful, like instagram which was bought by Facebook for $1 billion (Lessin and Ante, 2013), however they also state there are a lot of apps that do not catch on

by consumers. With so many choices, apps need to be unique and hold a certain competitive advantage over another.
3.3 Customers and Their Needs

Our company is making an app for anyone who has a smart device and capable of taking public transport. People who are looking to save money on petrol, parking and/or other costs associated with taking the car would benefit from the app.

People who are reluctant to take public transport because its is boring or non -rewarding would also be seen as a target customer.
3.4 The Product and Service

The app provides the customers with a fun game that gives the potential to win free rides. The more the game is played the more chance there is to win (encouraging the use of buses/trains). There would be a leaderboard displayed on the buses/trains on a LCD screen. Each person would be assigned a username through their HOP card.
3.5 Suppliers and Partners

A potential supplier could be an app developer, Mobile Apps is a possible supplier to build the app and to service after the sale. http://www.mobileapps.co.nz/ PB Tech is another potential supplier for the LCD screens to display the leaderboard. http://www.pbtech.co.nz/ Our company would need to partner with HOP card to be able to set up systems so customers can use their HOP card number to set up a login username/password for the app. http://www.myhop.co.nz/ The company would need to also partner with Auckland Transport. In order for the app to run at all, we would need full support and co-operation from Auckland Transport. http://www.aucklandtransport.govt.nz/
3.6 Strategy:

The company would follow a cost leadership strategy. Our company appeals to a broad market. According to Carney (2013) in New Zealand there is over 2 million smart phone owners, thats over 60% of the population. We feel that is enough for the app to appeal to a broad market. The cost of setting up the app is unknown until further research and specifications are made. However it would not be in the hundreds of thousands, it would be a low cost strategy as set up costs would not be that high. There would no need for many employees or big office spaces. The overall strategy is therefore Cost Leadership
3.7 Value Chain Activity:

The most important value chain activity for this businesses Market and sell the product/service The point of the app is to get people out of cars and into buses/trains. To do this out company must market the app as a fun and exciting game that offers generous rewards. Without having a big focus on marketing/selling the app our company will not reach the broad market we are seeking.
3.8 Business Processes

In order to know who won the prize (free rides) there must be a process which collects the results from the app. The process starts off from people playing the game, submitting their results, the results are then recorded and the user is given a placing if there result is good enough. The top 5 results will be displayed on the screens, and whoever finishes up in the top 5 at the end of the week will win the prize. REPLACE WITH BUSINESS PROCESS 1 MODEL

Start User given option to start again or quit


User plays game User congratulated, username put on LCD screen

Finishes game, submits result

Top 5, no Top 5,yes

Data Data stored stored


It is important for the business to know if user activity is going up down or platauing. If activity is going up then we know we are on the right track to reaching customer satisfaction, if user activity is going down, it means we probably need to change something.


User downloads app

User access app Data analyzed

Data Data stored stored

Plays game Decision made whether users increase or decrease


If increase

Need to look at marketing strategy

3.9 Functionalities

Data Storage functionality Placing top users 1-5 functionality


3.10 Systems

User recognition functionality Level of activity functionality


To know whether marketing tools are paying dividends, we

must have a system to read how many people are downloading the app. We need to know if

they are playing the game regulary or not, as many people may download the app but never actually play the game.

To know what the app could improve on we must be

able to have a feedback system in place. This would be placed in the app, and users can make a quick comment on it. Feedback would be filtered from good and bad and we can make judgements on what the customer is liking and disliking. To know who will the prizes at the end of the week results must be stored throughout the week and tallied up on Sunday to recognise who has placed 1-5. This is an important system and must be track, if the winners fail to receive their prize, the app will lack integrity potentially causing user activity to drop.

3.11. Summary Table: Value Chain to Systems

Value Chain Activity

Processes 1. Results collection process 2. User activity process

Functionalities 1. Data Storage 2. Placing top players 1-5 1. User recognition 2. Level of activity

Specific Information System(s) User Reading system Result storage system User reading system User reading system

Broad Information System(s) Collaboration System Collaboration system Collaboration system Customer relationship management system

Market and sell the product or service



Eventually nearly everyone will own a smartphone, to tapp into the app market could prove to be very successful for Auckland Transport. Making the trip fun and rewarding for commutors could see a rise in the use of buses and trains. The app itself may not solve all of Aucklands transport issues however it may entice some people to take the bus/train. If this proves to be somewhat successful then the app could go global and help other countries facing the same problems as Auckland.

C, Jones. (November, 2013). Apple's App Store About To Hit 1 Million Apps. Retrieved from http://www.forbes.com/sites/chuckjones/2013/12/11/apples-app-store-about-to-hit-1-million-apps/

Doesburg, A. (2013, Febuary) The digital Goldrush? Retrieved from http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10864137

E.lessin.,& E.Ante. (March, 2013) Apps Rocket toward $25 Billion in Sales. Retrieved from


L, Macpherson, (2013). Subnational Population Estimates: At 30 June 2013. Wellington: Statistics New Zealand.

M, Carney. (May, 2013). New Zealand Mobile Statistics 2013. Retrieved from http://marketingweek.co.nz/2013/05/new-zealand-mobile-statistics-2013/