Infosys Deliverable 2:

INFOSYS.110 BUSINESS
SYSTEMS:
DELIVERABLE 2: BUSINESS
SECTION
SUMMER 2014

Name Gregor Macdonald
NetID Gmac444
Group Number: 274
Website Link: http://infosys110group274.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Yvonne Hong Thursday 10am
Time Spent on
Assignment:
28 Hours
Word
Count:
1649

Introduction: For most students, a student life is a budget life (a very low budget), most
students do not have a large amount of money to sustain their basic needs. The purpose of
the Student Shopwise App is to provide the user with detailed information on sales in stores
i.e. which products are on sale, by how much have they been reduced and which stores the
sales or discounts are available in. This will help students reduce their spending costs.

3.1: Vision: To make university life easier and more affordable for students studying in New
Zealand by providing them a way to reduce their living expenses.

3.2: The Information and application industry:
Force: High/
Low:
Justification:
Buyer power: High
Consumers have many different options when it comes to buying
an app. There are multiple, large businesses that they can buy this
product from such as Apple, Google and Facebook. Also there is
likely a range of different products that the consumer can choose
from. For example a consumer may be looking to send photos to
other people using an app. They are not limited to one option for
this. They could use Snapchat, Instagram and many other different
products available from other businesses.
Supplier power: High
For companies such as Apple, supplier power would be high as it
is likely that the consumers in the app market already own a
product from the company from a different market. For example
Apple would have a high supplier power with consumers that
already use there producs such as the ipad or iphone
Threat of new
entrants:
Low
The app market is reveltively new and there is not a large demand
for apps as of yet. Yet already the market has large businesses
such as Facebook, Apple and Google. App success rate is also
very low which deters businesses from entering the market
(JESSICA E. LESSIN & SPENCER E. ANTE, 2013). On the other
hand however the global demand for apps is expected to grow by
200% in the next 2 years, going from $50 Billion U.S to $200
Billion. (Anindya Ghose & Sang Pil Han, 2014) Despite the low
success rate we might see businesses come into this quickly
growing market to attempt to secure some of the market share of
this new market.
Threat of
substitutes:
High
Although the app market is growing rapidly, there are still
alternatives to them. For example people may prefer to use a
cookbook rather than searching for recipes with a cookbook
alterative app.
Rivalry among
existing
competitors:
High
The App market has a quickly growing demand across the globe
so current businesses in the market will be trying to secure as
much of the market share as they can. We have evidence of a
competitive market as large companies such as Facebook and
Google are trying to buy out smaller, fast growing companies that
are already having huge success in this market such as
Snapchat,Inc (EVELYN M. RUSLI AND DOUGLAS
MACMILLAN, 2013), (JACOB KLEINMAN, 2013)

Despite low success rate and high competition in this market, businesses would find this
market attractive as successful apps will most likely reap a high amount of income for the
business due to the markets rapid growth. Whether they maintain the product themselves or
sell it off to one of the larger businesses.

3.3: Customers and their needs:
The Customers are students on a tight budget, this product will be aimed at the students
who have smartphones as research shows that over half of students use some sort of smart
phone, also this product is aimed at students that have a limited income and struggle to
afford day to day necessities, the average student income is $14,400 per annum (Leyla
Norman, 2014) and the average cost for rent and groceries a year is $26,000 (The University
of Auckland, 2014), from this we can tell that students who are not financially backed by their
parents, partners ext. , will likely need to take out a loan in order to afford their basic needs,
such as paying for rent , paying back their smartphone plan and paying for groceries.
3.4: This product is designed to help students save costs where they can by notifying them
of discounts in stores. For example Pak N Save has a sale on for fruit and veg, this
information will be received by the app, other details such as which store this applies to and
the duration of the sale will also be sent to the app. Overall this app matches the customers
needs as it provides them a way of saving costs with their day to day lives, helping them
save money and lessen the stress of trying to get by on the bare essentials. (Melissa, 2014)



3.5
Suppliers:
Vodafone: Supplies us with the customers, i.e. their smartphone users
NetApp: Based on the assumption that the business does not create its own apps. Can
outsource the manufacturing of the product to a company such as NetApp that can create it
for you.
Partners:
Google: Rival companies could potentially be partners, joint ventures could be established
that would be mutually beneficial for both groups. For example Student Apps could use the
resources available from Google in order to advertise the product and improve the quality of
it, in return Google would receive part of the profits made.
Countdown: Suppliers such as Countdown could also be potential partners, the success and
use of this app by students would be mutually beneficial for both Student Apps and
Countdown. Countdown could see this app as a way of attracting new customers to their
stores and so frequently provide and update information that Student Apps receive.





3.6: Porters Generic Strategies
Focused, Low cost
The Student Shopwise App is targeted at a narrow market. We know this because the
product is aimed at University students who have smartphones. Its a narrow market
because the product is being targeted at one specific group: University students who have
smart phones. If it were a broad market the target market group would likely be smartphone
users or university students. The Student Shopwise App is expected to have low costs. The
only real major cost for this product is the setup of the app itself (estimated around $25,000)
(http://howmuchtomakeanapp.com/). It is not like an expensive car company that has to
acquire costly materials to produce their product. The app is also one design to suit all the
consumers using it. It is not produced solely for the needs of a specific person. It is low cost
as the information needed for the product is not being gathered from scratch by Student
Apps. Rather it obtains the information it needs through the stores.

3.7: Porters Value Chain Model:
Sales & Marketing is the most valuable value chain activity for Student Apps in my opinion.
Although making the product can be argued to be the most important, the products relies on
the information gathered by the customer service team in order to improve the product.
Sales & Marketing is important as we need to obtain the most useful information available in
order to help students save costs on basic needs.








3.9

Process 1: App creation process
Functionality 1: Gather information on the current market and what the consumers are
looking for.
Functionality 2: Release beta project on market for consumers to trial.

Process 2:
Functionality 1: View customer complaints and their opinions on the product.
Functionality 2: Research new stores that the app can provide information on for the users.

3.10:
Customer Service System: (CSS) is the system used when dealing with the customers. It
incorporates the functionality of viewing customer complaints and their opinions on the
product. The system makes this function easier as it can involve things like online surveys
for example. Consumers can fill out the survey and that information will be sent to the Sales
and Marketing Department to help improve the product. This saves time as employees do
not need to speak to the consumers and record their complaints and comments manually.
Instead employees can focus on processing the information into improving the product
instead of just obtaining the information.
Manufacturing Execution System: (MES) is used in the management of the manufacturing
process, this includes the management of employees, equipment and resources. It helps the
functionality of releasing the beta project on market for consumers to trial as it is one of the
systems behind the manufacturing of the beta project. Ultimately MES is used to improve the
efficiency of manufacturing by keeping track of all the resources available and currently in
use and optimising production output. (McClellan, Michael (1997))
Digital Marketing System: (DMS) is used in the digital side of marketing as it manages things
like web design and other kinds of web promotion. This is very useful for a product such as
an App as there is no physical product and so the DMS is a priority.










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

Sales &
Marketing
1)App Creation
Process
1) Gather information on the
current market and what the
consumers are looking for.

2) Release beta project on
market for consumers to trial.
Manufacturing Execution System (MES) E.g. TPS
1) Update & Expansion
Process
1) View customer complaints
and their opinions on the
product.

Customer Sevice System (CSS)

Transaction processing
cheese system

Customer relationship
management cheese
system



In conclusion StudentApps is a business with a target market group of university students
with the vision of helping students through university by offering them a way to save money.
It uses a focused, low cost strategy and focuses more on the Sales & Marketing in Porters
Value Chain Model.


















References:
D1:
Bromet et al. BMC Medicine, (2011) Cross-national Epidemiology of DSM-IV Major
Depressive Episode, Retrieved from http://www.biomedcentral.com/content/pdf/1741-
7015-9-90.pdf
Statistics New Zealand, (2013) Student Loans and Allowances: 2012, Retrieved from
http://www.stats.govt.nz/browse_for_stats/education_and_training/Tertiary%20education/
StudentLoansandAllowances_HOTP12.aspx
3 News, (2014) Damp Dunedin Flats: Could this be the worst? Retrieved from
http://www.3news.co.nz/Damp-Dunedin-flats-Could-this-be-the-
worst/tabid/817/articleID/337213/Default.aspx
The Morning Sun, (2014) Empty Wallets, Empty Stomachs, Retrieved from
http://www.morningsun.net/article/20140323/NEWS/140329890/2134/NEWS

D2:

Books:

McClellan, M. (1997) Applying Manufacturing Execution Systems, Volume 2 of Resource
Management, CRC Press, page 54

Online Resources:

Ghose, A. and Han, S.P. (01/01/2014) Estimating Demand for Mobile Applications in the New
Economy, Management Science, Forthcoming, Retrieved from:
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2378007

TechnoBuffalo, Kleinman, J. (15/11/2013) Snapchat Allegedly Rejected $4B Buyout Offer from
Google, Retrieved from: http://www.technobuffalo.com/2013/11/15/snapchat-4-billion-google-
offer/

Bluecloud Solutions, (2014 copyright date) Tips for Mobile App Marketers Know Your Target
Market, Retrieved from: http://www.bluecloudsolutions.com/articles/tips-mobile-app-
marketers-target-market/

The University of Auckland, (n.d.) Cost of Living, Retrieved from:
https://www.auckland.ac.nz/en/for/current-students/cs-fees-and-money-matters/cs-cost-of-
living.html

The Wall Street Journal, Lessin, J.E. and Ante, S.E. (04/03/2013) Apps Rocket Toward $25 Billion in
Sales, Retrieved from:
http://online.wsj.com/news/articles/SB10001424127887323293704578334401534217878?mg=ren
o64-
wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB1000142412788732329370457833440153
4217878.html