Name Zane Crawford NetID zcra134 Group Number: 346 Website Link: http://grp346.blogspot.co.nz/p/d1.html Tutorial Details Tutor: Day: Time: Yvonne Thursday 11am Time Spent on Assignment: 25 hours Word Count: 1647
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2 FAMILY SAFETY INTRODUCTION Having fun in the city, or going out to town is one of the most popular past times among New Zealanders in the Auckland area. The Auckland City night life can be a scary and sometimes even dangerous place. As such this application was developed to help combat these issues by linking people together, helping them make friends and interact as well as keeping them safe. 3. BUSINESS SECTION 3.1 Vision To provide a service to help people socialize and connect in a safe and meaningful way so that they are able to fully enjoy urban nightlife. 3.2 Industry Analysis: The Mobile Application industry Industry: The Mobile Security Application Industry Force: High/Low: Justification: Buyer power: High In the mobile application industry there are many buyers with many sellers. This is to the extreme that any application, no matter how large has become a single application in a sea of apps.(Perez, 2014). Furthermore with 86% of all mobile web being used by applications (Perez, 2014) there is clearly a very high number of app creators, providing buyers with many options. Supplier power: Low Supplier power in this industry is very low as there are many suppliers with heavily diluted
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3 power. There are many examples of applications that can help in these situations such as As stated by Flurry CEO Simon Khalaf despite massive efforts by Google and Facebook, the market hasnt consolidated over the past couple of years, we have seen new franchises emerge in almost every sector of mobile. (Perez,2014). As such there is no one supplier with control over security applications. Threat of new entrants: High There is a very high threat of new entrants in this market. There are few barriers to entry and aside from the large companies many third party apps are currently making it into the industry (Ajmera, 2014). Many other security apps exist including Find My Phone, Find My Friends, and GPS Tracking Pro among numerous other (Google, 2014). As such is this makes the ability of a new a security application breaking into the industry very good. Threat of substitutes: High There are many substitutes in New Zealand. A major example of this is the traditional 111 emergency services which took over 560,000 calls in the December 13 th to February 2014 quarter. (Telecom,2014). That being said the police also abdoned 16,296 calls in this time period and failed to answer over 10,000 calls as well. This indicates that although there are substitutes present there is still a solid customer base in this
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4 industry. Rivalry among existing competitors: High There is a good deal of competition in this market for both downloads (Perez,2014) and advertisers (Ajmera,2014). Google drive alone has 5 different free security applications (Google, 2014). That being the case because of the sheer number of people with smart phones with just under 50% of adults reported to have smartphones in 2013 (New zealanders moving away from standard mobiles, 2013). There is still room in the market for Family Safety. Overall attractiveness of the industry: Despite the high level of competition in the industry because of its sheer size and the fickle nature of app downloaders (Fitzpatrick, 2013) there is still room in the market for this product. There are many other security applications but none so far have the socially connective aspect of the Family Safety. As such this point of difference will make the application stand out. 3.3 Customers and Thei r Needs Although this app has broad appeal the main target group for this application are young women aged 15-25. The main reasons behind this are because of the current situation in the Auckland region. Sexual assault numbers in the Auckland region increased from 278 to 340 in the Auckland region from 2012-213 (Police National Headquarters,2014). This, combined with the recent Roastbusters epidemic which involved young men taking advantage of young women with and the likelyhood of this behaviour spreading (Dougan,2013) have lead to increased awareness and demand for security applications. Although the main consumer group is young women it is important that a security application also appeal to their parents as they are as important, if not more so then appealing to young women. Therefore the application needs to provide adequate saftey features to make parents and
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5 young women feel safe whilst at the same time providing social networking and entertainment features that will appeal to the younger generation. 3.4 The Product and Service .The GPS tracking and emergency contact functions present on the phone will help both family and friends keep track of one another. The addition of a friend system to this application much like facebook friending would also make it easier to find other known people in town especially if a problem arises. By adding a social networking side to the application it also helps to differentiate Family Safety from other more traditional security applications. As stated by (Fitzpatrick,2013) most applications only enjoy temporary success and interest does eventually begin to decrease as newer trendier applications come out but Family Safety could start that new trend. Its safety aspects will keep parents happy combined with an instant messaging system that will appeal to milenials (Fitzpatrick,2013) would really appeal to our designated consumers. 3.5 Suppliers and Partners One key supplier would be Google Maps which would provide the mapping and location technology to enable the GPS functions of Family Safety to work reliably. Another major supplier would be the major phone companies such as Telecom and Vodafone who would provide the hardware that would allow the phones to track one another with GPS technology and locate one another regardless of cellular phone provider. Key business partners would include the Apple App Store as well as Google again as they would provide the platform from which Family Safety would be downloaded from. A second Key partner would be local bars and nightclubs which would need wifi hotspots so people can communicate with one another and send and receive distress signals well in those environments. Lastly, another major key supplier would be advertisers from which Family Safety would generate the majority of its revenue. 3.6 Strategy: Focused Low Cost By nature the mobile security application industry is low cost. Most if not all of the security apps already in existance are (Google,2014) and there are a large number of conusmers with
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6 71.9% of students owning smartphones (New Zealanders Moving Smartly Away from Standard Mobiles,2013). As such a low cost strategy that generates most of its revenue from advertisements (Fitzpatrick,2013) is the ideal direction to take this application. This application is geared towards appealing to young women and adults parents which make up two large groups of smartphone users (New Zealanders Moving Smartly Away from Standard Mobiles,2013) but is nonetheless taking a very narrow market view to appeal to those two demographics. The the overall strategy is therefore Focused Low Cost 3.7 Value Chain Activity: Market and Sell The most important value chain activity for this business is Marketing and Selling the Product/ Service This is because of the sheer number of mobile phone applications with about 86% of time spent on the mobile web being dedicated to applications (Perez, 2014). This combined with the multitude of other security apps (Google, 2014) make it absolutely vital Family Safety stands out in the marketplace. By presenting a safe yet fun image this will ensure that the product is targeted at the correct narrow customer group to create a competitive advantage by making Family Safety a trendy application and therefore more appealing.
3.8 Business Processes 3.8.1 CREATIVE/SALES PROCESS The creativity and sales process is can be broken down into establishing customer likes and dislikes, promoting product features and communicating through a marketing campaign, attracting customers, processing downloads, and advertising wealth generation:
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8 3.8.2. IDENTI FY CUSTOMER PERSPECTIVE PROCESS The Customer perspective Process involves the conversion of customer ideas into a marketing campaign.These include identifyIing customer requirments, researching new marketing schemes, developing a protype, testing the product, and implementing the product. This is shown below:
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Develop Marketing Scheme
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3.9 Functionalities 3.9.1. CREATI VE/SALES PROCESS Implement a marketing plan Generate downloads 3.9.2. IDENTI FY CUSTOMER PERSPECTIVE PROCESS Develop a marketing plan Test marketing plan 3.10 Systems
3.10. 1. CUSTOMER INTEREST ANALYSI S SYSTEM This system would track customer responses to surveys and information in order to track their overall interests. This would help the team plan and implement a marketing plan and help market the app as something fun and yet safe. 3.10. 2. MARKETING TESTING SYSTEM This system would help test marketing schemes in controlled environments to ensure that the marketing plan will not be a diaster. This way crises can be avoided and this will mitigate bad marketing plans as well as aiding in their implementation. 3.10. 3. DOWNLOAD MANAGEMENT SYSTEM This will help track and manage the number of downloads being generated and can be used to both investigate the success of the marketing scheme and help track how and why downloads are being generated. This will help ensure that the application is being presented as family friendly, secure and fun.
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11 3.11. Summary Table: Value Chain to Systems
Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s)
Marketing/ Sales 1. Creative/ Sales Process 1. Implement a marketing plan
2. Generate downloads Customer Interest/ Analysis
Download Management CRM
TPS 2. Identify Customer Perspective Process 1. Develop a marketing plan
2. Test marketing plan
Customer Interest Analysis
Marketing Testing CRM
DSS
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12 CONCLUSION On a whole the overall business idea is to create a securtiy application that appeals to both parent and young adult women and is valuable to the organisation. Family Safety provides a way for people to connect safely and enjoy the benefits of the nightlife.
REFERENCES
1. Ajmera, N., Sato, L., and Stafford, B. (2014). Monetizing mobile apps: striking the right balance. McKinsey Quarterly, 2(2), 28-29. Retrieved from Business Source Premier 2. Dougan, P., (2013). Roast busters: new vigilante group promises justice. New Zealand Herald Website. Retrieved from http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11151474 3. Fitzpatrick, A. (2013). One stat that explains why instagram is adding ads. Time.com 10/28/2013, 1-1. Retrieved from Business Source Premier 4. Google. (2014). Family Safety Production. Retrieved from https://play.google.com/store/apps/developer?id=Family+Safety+Production 5. New zealanders moving smartly away from standard mobiles. (2013). Retrieved from http://www.horizonpoll.co.nz/page/297/new-zealande 6. Perez, S., (2014). Mobile app usage increases in 2014, as mobile web surfing declines. Retrieved from http://techcrunch.com/2014/04/01/mobile-app-usage-increases-in-2014-as-mobile-web-surfing- declines/ 7. Police National Headquarters. (2014). A summary of record and resolved offence statistics. Wellington: Police National Headquarters. Retrieved from http://www.police.govt.nz/sites/default/files/publications/crime-stats-auckland-city-20131231.pdf 8. Telecom. (2014). 111 report dec13-feb14 (2013-2104 Report) [Online PDF] Wellington: Ministry of Economic Development