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GINFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Annyssia Gonsalves
NetID agon017 8270929
Group Number: 087
Website Link:
http://infosys1102014s1group87.blogspot.co.nz/

Tutorial Details
Tutor: Day: Time:
Olivia Tuesday 9-10am
Time Spent on
Assignment:
40 hours + Word Count: 1647

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TRACK-IT MOBILE APPLICATION.
INTRODUCTION
It is difficult to keep track of our possesions in a consumerist society where people purchase
and add to their list of possessions. We often lose valuable objects because we cannot
locate them when they are lost.
A solution is to utilise tracking applications using Near Field Commuication (NFC) such as
Track-it. By synchronising the data on the mobile phone application with a supplementary
tag which is attached to an object, the application keeps track of the tag and hence the
object as well. Therefore, if the object is misplaced, the application can locate the tag on the
object and can guide you to the lost item.
3. BUSINESS SECTION
3.1 Vision
To use technology to facilitate customers in locating their belongings and create a simplified
world where if things are lost, they can always be found.
3.2 Industry Analysis: The Tracking Applications Industry.
This industry consists of all the applications that use GPS or NFC to find misplaced objects
and can be downloaded on a smartphone or any electronic device.
Buyer power: High There are hundreds of tracking apps in the Apple,
Google and Windows marketplaces with many
more being created each day (Windows, 2014).
Customers therefore have a large variety of
choices about what apps to buy and from whom
(Google Play, 2014)
Supplier power: Low There are numerous independent app

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developers, coders, NFC programmers and
software programmers of tracking apps and
therefore the organisations who hire these
suppliers have a large choice as to whom they can
choose to design their applications (Konrad,
2012). This gives suppliers limited power in this
industry.
Threat of new entrants: High An application can be created using basic
computer technology. Suter (2008) elaborates
that there are also low entry barriers like low
capital requirements, fixed costs and no inventory
needed. He also states that along with official
apps, 3
rd
party ones are also available in the
marketplace. For tracking apps, all that is needed
is the programming of GPS or NFC into the app or
phone. Therefore many applications can enter
easily into the marketplace.
Threat of substitutes: High There are many different versions and prices of
tracking applications that are available on
different app distribution platforms such as the
Apple App Store, Google Play Store, Windows
Marketplace etc (Google Play, 2014) (Microsoft,
2014). Another substitute is the web-based
version of apps on mobile phones. This involves
using a smatphones internet browser to access
similar information as the app (Suter, 2008).
Rivalry among High Since there are numerous apps available,

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competitors: competitors need to market their products
accurately to ensure a stable customer base.
Rivalry is intensified by app developers being
numerous and equal in size (Suter, 2008). This is
the case in the tracking applications industry as
there are many apps, however they are all
relatively small in scale . Most of the applications
are unknown to the public and therefore
companies have to struggle to create a strong
brand reputation.
Overall attractiveness of the industry: Since most of the forces are high, the tracking
applications industry does not appear to be an attractive industry to enter into. However, if
the application produced has a large appeal, the the industry can also prove to be very
profitable as larger businesses may purchase the successful application, generating sizeable
profits.
3.3 Customers and Thei r Needs
The target customers are active, busy multitaskers who have access to a smartphone
(Enaikoon n.d.). They value convenience and want their belongings to be synchonised with
their technology (Palenchar, 2012). Security is important to them and they want their
valuable items to be safe (Palenchar, 2012). Most of the customers are also students who
use techonology to simplify their lives (Teh et al., 2014). They need to get through their
schedules each day without losing valuable objects. If an object does get lost, it needs to be
easily located and retrieved without wasting time trying to find or replace their objects.
3.4 The Product and Service
Track-it retrieves data on the location of the tagged abject so that the customer can find
their items quickly. This instantaneous response allows the customer to save time looking
for their belongings and carry on with their daily routines, uninterrupted.

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It also prevents people from losing things. Once the tag is attached to the object, it regularly
sends out alerts to a smartphone, allowing the user to know where their tagged items are at
all times. If their belongings do get stolen or lost, the application allows customers to locate
and retrieve their possessions the minute they realise its been missing.
3.5 Suppliers and Partners
Supplier 1: an independent/professional app developer who creates ideas for apps and
designs them to be available in the marketplace.
Supplier 2: a software programmer or coder who creates the functions and animations that
make the application operational.
Supplier 3: NFC programmers who register NFC into the application so that customers can
trace their items.
Partner 1: an application distribution platform such as Google Play or Windows
Marketplace. These platforms allow the app to be sold to users of that platform.
Partner 2: advertisers who display advertisements on the app, e.g For Track-it, similar
producs like a navigation or map app would be advertised. Advertising allows the app to be
sold for a lower price to customers as adveritisers pay for some of the operating costs.
Partner 3: retailers (e.g. Noel Leeming) who sell the tags that are used with the application.
Track-it can work together with these retailers to negotiate prices of the tags.
3.6 Strategy: Differentiation
High cost: The Track-it app and supplementary tags are available for a low price, however,
purchasing a smartphone to use the app with can be expensive.
Competitive Scope: There are many potential customers of this product: busy individuals,
people who often lose things, those that live in crowded areas etc. Therefore it appeals to a
broad market.
The overall strategy is Differentiation.

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3.7 Value Chain Activity: Market/Sell the appl ication.
An important value chain activity for this business is marketing and selling the application.
Track-it needs to be portrayed effectively to customers so they can comprehend its
functions and benefits. Marketing and selling the app to the correct platforms allows more
cutomers to purchase the app and creates a successful brand reputation.
The correct marketing techinques allow potential customers to see how the app will benefit
and facilitate their lives everytime they lose something. With the app, they can retrieve their
lost items quickly.
Effective marketing campaigns differentiate the app from similar apps in the marketplace.
The app will also be conveyed in an appealing way to all of its target customers.
3.8 Business Processes
CUSTOMER BILLING PROCESS This process provides the means by which revenue (through
the sale of apps) enters into the organisation. This ultimately leads to determining how
much profit is generated by the business. Those involved in this process also have direct
customer interactions and could affect how the business is portrayed to the public.
CUSTOMER BILLING PROCESS MODEL:


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Start
Receive Customers
order
Order processed
correctly?
Recheck Customers
order
Find invoice amount
No
Yes
Does the customer have
enough credit to pay for the
order?
Sales Department
Pay to
$
Order Processing System
Accounting
Accounting System
Bill customer and
receive payment
Yes
Decline order No
Verify payment
Notify customer of
processed payment
End

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DEMAND FORECASTING PROCESS This process allows the company to see consumer trends
and the demand of their product. If the demand is low, the company needs to produce new
marketing campiagns or improve the products features and appeal so that more customers
will be inclined to purchase the application. If the demand is high, the company has to
ensure its partnered retailers have tags in stock to sell to the customers of the app.
DEMAND FORECASTING PROCESS MODEL:

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Start
Identify the
forecast time
period
Identify the target
market
Is this time period
realistic?
Find another time
period
No
Yes
Gather historical
data about target
market
Is the data
reliable?
Gather more
accurate data
Create future
trends
No
Yes
Marketing Statistics Analysis System
End
Demand forecast
using Statistics tools

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3.9 Functionalities
CUSTOMER BILLING PROCESS:
Sending an invoice to a customer.
Verifying the customers account details and payments.
DEMAND FORECASTING PROCESS:
Constructing graphs to analyse data more efficiently.
Creating trend assumptions for the future.
3.10 Systems

ACCOUNTING SYSTEM This system accesses the customers account information and
provides managers with data about the customers purchase history with the company. It
supports decions by allowing users to decide if customers can pay the bill for the goods they
are about to purchase and prevents transactions from being declined due to unavailable
funds. It also processes transactions by verifying if the money has been transferred correctly
into the right accounts from the customer to the business.
GRAPH PRODUCTION SYSTEM This system produces graphs which are used to analyse data
easily. It uses inputs such as data from various departments in the business, customer
trends and purchase history to produce tools of analyses to facilitate and support decions
that are made. It also gives managers a different perspective as it allows them to compare
data across different departments more effectively.
STATI STICS ANALYSIS SYSTEM This system uses historical data that has been entered into
the system to forecast trends about the business and its customers. It allows managers to
see what the effects of their decions will be in the future and gives them the opportunity to
implement different strategies if they believe the ones they are currently using are not
successful.

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3.11. Summary Table: Value Chain to Systems

Value Chain
Activity
Processes Functionalities Specific Information
System(s)
Broad Information
System(s)

Marketing
and selling
the
application.
1. Customer
billing
process.
1. Sending an invoice to a customer.

2. Verifying the customers account details
and payments.
Accounting system

Decision Support System
and
Transaction processing
system.
2. Demand
forecasting
process.
1. Constructing graphs to analyse data
more efficiently
2. Creating trend assumptions for the
future
Graph production system


Statistics Analysis system
Decision support system
and
Management Information
Systems.

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CONCLUSION
Track-it uses technology to facilitate the lives of people who are constantly on the go. This
business aims to reduce the amount of time that is wasted by people trying to find or
replace items that have been lost. Through the use of the mobile application in conjunction
with a tracking tag, users will be able to locate any lost item. It confirms the increasing role
of technology as an aid in our daily lives.

REFERENCES

1. Palenchar, J. (2012). Bluetooth, NFC Potential Seen In Aftermarket. TWICE: This
Week in Consumer Electronics, 27(9), 24. Retrieved from Business Source Premier.

2. Teh, P., Ahmed, P. K., Cheong, S., & Yap, W. (2014). Age-group differences in Near
Field Communication smartphone. Industrial Management & Data Systems, 114(3),
484-502. doi:10.1108/IMDS-06-2013-0274

3. Enaikoon. (n.d). Who can benefit from Near Field Communication technology?
Retrieved from http://www.nfc-tracker.com/en/guard-tour-monitoring-system/

4. Google Play. (2014). Tracking Apps. Retrieved from
https://play.google.com/store/search?q=tracking&c=apps

5. Microsoft. (2014). Windows Phone Track Apps. Retrieved from
http://www.windowsphone.com/en-nz/store/search?q=track

6. Suter, F. (2012). Analysis of the app market based on Michael Porters five
competitive forces. Retrieved from http://3xhappiness.com/analysis-of-the-app-
market-based-on-michael-porters-five-competitive-forces/

7. Konrad, A. (2012). Romancing the App Developer. Fortune, 165(6), 38. Retrieved
from Business Source Premier.