Name Tayla Court NetID tcou762 Group Number: 256 Website Link: http://infosys1102014s1group256.blogspot.co.nz/p/d2.html Tutorial Details Tutor: Day: Time: Olivia Schultz Thursday 9am-10am Time Spent on Assignment: 16 hours Word Count: 1530
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2 CREATING A SAFER DRIVING CULTURE INTRODUCTION
From 20102012, 12% of car crashes on New Zealands roads were a direct result of distracted drivers; 179 of which were caused by cell-phone distraction. (Ministry of Transport, 17/12/2013). With the use of smartphones increasing, distractions for drivers are now increased due to new applications demanding constant attention. The solution to this problem incorporates the new technological error, it is an app which uses information systems to automatically disable the smartphone when the car engine starts, and re-start it when the engine is shut off. This app reduces the risk of car crashes as the distraction of the smartphone is removed, and therefore safeguarding New Zealands drivers from one leading contributor to car crashes. Sute3.1 Vision To instil safe driving practices in the minds and actions of current and future drivers on New Zealand Roads. 3.2 Industry Analysis: Smartphone Application Industry Industry: Smartphone Application Industry Force: High/Low: Justification: Buyer power: High The two largest app stores, Google Play and the Apple App store contain around 800,000 apps each (Global Mobile Statistics, May, 2013) As there is such a wide range of apps for a variety of different purposes, buyer power is high as there are plenty of apps to choose from. Supplier power: Low Services such as appmakr.com (App maker for Apple and Android n.d), make the basic creation of apps simple for all. Therefore supplier power is
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3 low as companies or other people interested in developing applications have plenty of suppliers to choose from, that range from a variety of expertise. Threat of new entrants: High As the creation of apps requires little capital, the threat of new entrants is high, because it is relatively inexpensive to improve and develop apps that better fit the needs of the user and keeps up with new technology. (Industry Analysis: Apple Smartphone Apps, Chapter 9) Threat of substitutes: High Substitutes to apps can include mobile-based websites, different mobile app platforms such as android vs iPhone, and analogue products such as paper calendars etc. (Suter, F. 2012). Therefore, there is a wide range of substitutes for this industry. Rivalry among existing competitors: High As there are so many competitors in the industry, The competition for consumer attention is fierce (Suter, F. 2012), this is due to the huge amount of apps available on the market, so applications need to be the best for the best price, in order to generate sales. Overall attractiveness of the industry: The overall attractiveness for the smartphone app industry is low. Although it may seem attractive due to low start-up costs and high demand, Low barriers to entry make the threat of new entrants high, and profitability reduced by high buyer power, making rivalry highly competitive and the industry extremely unattractive.
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4 3.3 Customers and Thei r Needs The target group of customers for this product is all New Zealand drivers who own a smartphone. Drivers who use their phone while driving are 23 times more likely to be involved in a car crash (NZ Transport Agency. Driver Distractions Infographic). Therefore, with the amount of New Zealand drivers owning smartphones increasing, they now pose a significant risk to the safety of all road users due to applications demanding attention at all times. Our customers need a product which can prevent applications from causing distraction when driving, to ensure their focus is on the road. 3.4 The Product and Service Our application satisfies the needs of the customer by using information systems to disable the smartphone when the car engine starts, meaning all txt messages and notifications from applications will not notify the driver until the car is turned off. The AA claims that drivers need to understand that hands-free mobile use is also dangerous as the driver is not fully focused on the road ahead of them. For this reason, the app also prevents the phone receiving phone calls. The app will also not allow the phone to be used or checked until the engine has stopped. New Zealand drivers need a service that will remove the distraction and temptation of a mobile phone while they are driving, and by syncing with the cars engine to do this, the app provides a hassle free solution for drivers. 3.5 Suppliers and Partners Suppliers to this product would be application stores and technology developers. Technology developers will design the app and its according information systems, so it is able to connect with a car engine, and recognise when it starts and when it is turned off, as well as making the app available to be used on all smartphones. The application store will also be a supplier to this product, as the stores such as iTunes and Google Play will provide the service for the app to be purchased and downloaded by consumers. The partners to this product will firstly be car companies such as Toyota and Holden. Car companies will provide cars with the technology installed to be able to link the car engine
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5 with the phone. Another partner will be mobile phone companies, which will provide advertising and information to encourage their own customers to use the app. 3.6 Strategy: Cost Leadership Our vision is to instil safe driving practices in the minds and actions of current and future drivers on New Zealand Roads. Therefore, the app needs to be readily available to a broad range of people. As there is a large amount of drivers in NZ, the competitive scope for this product is broad. The application also needs to be available to all of these drivers, and there must be little or no cost involved, to encourage all drivers to use it. The overall strategy is therefore Cost Leadership. 3.7 Value Chain Activity: Market and sell the product or service The most important value chain activity for this business is Market and sell the product or service. To instil safe driving practices for all drivers on NZ roads, the key value chain activity is to market and sell the application, to ensure drivers are aware of the app, what purpose it serves and how it will make roads safer for all. As the business strategy is cost leadership, marketing and selling the app is essential, to communicate the app to a broad range of people and to achieve a selling price that all drivers can afford. 3.8 Business Processes 3.8.1. DEVELOP MARKETI NG CAMPIAGN PROCESS A strong marketing campaign will ensure all NZ drivers are aware of the apps services. The campaign needs to be tailored to the broad market of NZ drivers to ensure that the companys vision of instilling safe driving practices in the minds of all drivers is accomplished.
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6 Develop Marketing Campaign Start Research customer needs Does customer need thi s product? Re-develop/ tailor product to customer needs No Create marketing plan and budget Yes Select target audience Trial campaign on focus group Does focus group positivel y respond to campaign? No Run campaign Yes End Marketing Research & Development Technology Development Budgeting System Customer Research & Analysis System
Process
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7 3.8.2. PRICING PROCESS As the businesss strategy is cost differentiation, low costs are essential to ensure that the product meets the companys vision. Therefore the Pricing Process will establish a price to satisfy customers and cover the businesss costs. Pricing Process Start Budget costs associated with developi ng, running and mai ntaining product Research how much customer would pay for product Does the customers demand price cover the budget costs of providing product Determine price of product Yes End Accounting System Accounting Research & Development Customer Research & Analysis System Re-budget costs No Accounting
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8 3.9 Functionalities 3.9.1. DEVELOP MARKETI NG CAMPAIGN PROCESS Analyse and draw conclusions from research Assign available funds to campaign 3.9.2. PRI CING PROCESS Calculate cost of development, running and maintenance of product Value the price of the application 3.10 Systems
3.10. 1. CUSTOMER RESEARCH AND ANALYSIS SYSTEM incorporates the Analyse and Draw Conclusions from Information functionality, as it analyses the research provided to recognise similarities, trends and discrepancies from the data, in order to draw a conclusion on what the customer needs in the terms of this application. 3.10. 2. BUDGETING SYSTEM incorporates the assignment of available funds functionality as it calculates the costs involved in developing the application, evaluates the costs needed for the marketing campaign and then determines a suitable marketing budget, to achieve a successful campaign. 3.10. 3. ACOUNTING SYSTEM incorporates the functionality of calculating the cost of development, running and maintenance of the application. By determining all the cost factors involved with producing, running and maintaining the app individually, the accounting system calculates the total budgeted costs for providing the app, which will help to determine the application price.
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9 3.11. Summary Table: Value Chain to Systems
Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s)
Market and sell the product 1. Develop a Marketing Campaign Process 1. Analyse and draw conclusions from information
2. Assign avaliable funds to campaign Customer Research and Analysis System
Budgeting System Transactional processing system
Decision Support System 2. Pricing Process 1. Calculate cost of development, running and maintainence of product
2. Value the price of the application Accouting System
Decision Support system
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10 CONCLUSION In conclusion, the vision of the business is to instil safe driving practices in the minds and actions of current and future drivers on New Zealand Roads. In order to successfully achieve this goal, the company needs to focus on the value chain activity of marketing and selling the product, so that the application can become recognised and then used by all New Zealand drivers. The value of IS/IT in this organisation is essential in providing marketers key information about what the needs of the customers are, as well as assessing the costs involved to create marketing campaign budgets, and also to value the price of the application, through the use of information systems that are imbedded in the business process.
REFERENCES
1. Ministry of Transport (17/12/2013). Diverted Attention Crash Facts. Retrieved from URL: http://www.transport.govt.nz/research/crashfacts/divertedattention/ 2. Global Mobile Statistics (05/2013). Global mobile statistics 2013 Section E: Mobile apps, app stores, pricing and failure rates. Retrieved from URL: http://mobithinking.com/mobile-marketing-tools/latest-mobile-stats/e#lotsofapps 3. Appmakr.com (n.d) App Maker for Apple and Android. Retrieved from URL: http://www.appmakr.com/ 4. NZ Transport Agency (30/5/2013). Driver Distractions Infographic. Retrieved from URL: http://www.nzta.govt.nz/traffic/driving-safely/distraction/infographic.html 5. Industry Analysis: Apple Smartphone Apps. Chapter 9, Designing Business Information Systems: Apps, Websites and More. Retrieved from URL: http://2012books.lardbucket.org/books/designing-business-information-systems- apps-websites-and-more/s13-industry-analysis-smartphone-a.html 6. Suter, F. (2012) Analysis of the App market based on Michael Porters 5 Forces. Triple Happiness. Retrieved from URL: http://2012books.lardbucket.org/books/designing- business-information-systems-apps-websites-and-more/s13-industry-analysis- smartphone-a.html 7. Ministry of Transport (17/12/2013). Diverted Attention Crash Facts. Retrieved from URL: http://www.transport.govt.nz/research/crashfacts/divertedattention/ 8. AA (n.d). Mobile Phones and Driving. Retrieved from URL: http://www.aa.co.nz/about/safety-on-the-roads/safer-drivers/staying-focussed-and- alert/mobile-phones/