INFOSYS110-2014 Deliverable02 Jackson Yap

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

Name Jackson Yap
NetID JYAP734
Group Number: 167
Website Link: http://infosys1102014fcgroup167.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Helen Chen Tuesday 2pm
Time Spent on
Assignment:
25 hours Word Count: 1782

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ROMANROOM APPLICATION
INTRODUCTION
Students from college to university face the problem of spending heaps of time and effort
remembering key materials, and when examaminations come along, students forget what they’ve
been studying. The RomanRoom solution is an ancient memorisation technique that is effective in
memorising information. We have made this work all on your smartphone!
3. BUSINESS SECTION
3.1 Vision
Give humankind the best studying methods and techniques by using the level of technology made
avaliable to us all.
3.2 Industry Analysis: Mobile Apps
Industry: The Mobile Apps Industry is new but a very profitable industry. For example ,in the
Appstore alone, Cohen, P (2014) indicates revenue in 2013 reached $10 Billion.
Force: High/Low: Justification:
Buyer power: High Latitude Insights (n,d.) shows that only 1 in 4
consumers would pay an excess of $10 for an app. The
consumers in this industry are price sensitive and
would not pay too much for an application. There are
many different apps in this industry, for example
Wikipedia (n.d.) indicates googleplay has +1,000,000
apps on the market. Meaning consumers will have lots
of choices to choose from. This will give more power
towards the buyer because they can find alternatives
very easily.
Supplier power: High Supplier power is high because there are only two

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major places for apps can be sold on. The major
suppliers of marketplace are Appstore owned by
Apple and Googleplay owned by Android. Currently to
sumbit apps on to the appstore and googleplay is free
of charge, but if Apple and Adroid decides if they want
to charge a fee to sell an application, App developers
will have no choice but pay that fee in order to earn
revenue. Therefore the supplier power is high.
Threat of new entrants: High Intial investment to enter the app industry is very low.
A computer and internet-connection is all the capital
that would be needed to create an application and
make it avaliable to download on the app market. The
barriers to entry to this industry is low. To enter a the
app market, you may be required to meet a few
simple requirements, exmaples of requirements are
non-malicious software, stable software, testing
software, and finally software validation. It is also free
to sumbit app onto the market.
Threat of substitutes: Low The benefits of mobile apps is very hard to emulate in
other subsitutes. For example, unqiue apps can only
be used on smartphones and cant be used on laptops
or computers. Therefore customers don’t switch to
other subsitutes because benefits of mobile apps are
not realized in existing subsitutes.
Competition High Competition is high because they are so many apps
being sold on the appmarket. It will be difficult to
show product superiority as most apps can be easily
emulated by other competitors. Also most
competitors are at equal size. Most competitors are

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soletraders.
Overall attractiveness of the industry:Unattractive This industry is a thriving industry with lots of
competitors. The table would indcate the industry is unattractive. It is very difficult to earn a big
portion of the revenue because they are just too many competitors in this industry due to low
barriers to entry. Suppliers hav more power which can be a disadvantage to business, its very easy
for a businesses to enter the industry which can create new unwated competition, buyer power is
high so it is difficult to manipulate prices. Competition is high which can be difficult to earn a big
share of industry profits.
Overall the industry is unattractive. However, although this industry is unnattractive, it would not
‘hurt’ to try in this industry. Compared to other industries such as food manufacturing industry,
investing in the app industry is not very risky. To create an app, all you need is a computer. Where as
a food manufacturing businses require buildings and machines which can be complex and costly to
set up.
3.3 Customers and Thei r Needs
Our target customers will be college students and highschool students. They will most likely have
low disposible income. Our price will reflect this by making our app affordable. Our customers want
to have flexibility , they do not want to have to be at certain location just to use the app. Our app
will need to be functional at any given place. Since our customers are mostly college and highschool
students, between the ages of 13 and around 23, we will to make our app appeal to this age group
by using using reward systems or the graphics we use in our app. PewResearch (2013) reports “that
81% of online teens using some form of social media, and that 77% use facebook.” Teachers at Risk
(n.d.) also shows “that teens spend 7 hours and 38 minutes on social media – more than a full time
job.” This indicates social media is a hobby for teenagers.
3.4 The Product and Service
Our RomanRoom app will be priced at $1.99. This is a standard price as most people do not pay a lot
for apps. This is a affordable price for students , for an example , in NZ, the minimum wage is $14.25
(Ministry of Business, 2014). Suppose our customers earn $14.25 per hour, our price of $1.99 would
be appropriate. Our application can work offline, meaning the user does not have to be connected
to the internet to access their information. Users can therefore have the flexibilty to use the
application anywhere they like to. Our applications user-interface will be themed to appeal to our

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customer age group. Since our customers spend lots of time using social-networking websites, the
app will have a system where users can comment on each others ‘rooms’ and share their results
with friends through major social media websites such as facebook and twitter. This will encourage
the users to use the application more frequently and create a competitive enviroment among the
peers
3.5 Suppliers and Partners
We need a supplier of internet connection so we can send update files to app market. We also need
a supplier electricity so we can run our computer to write/correct files.

We will be partnering with government education agencies to show legitmacy , and also partner
with software developers such Microsoft to back up our R&D department.


3.6 Strategy: Focused Low Cost
Our competitive scope will be the ‘Narrow Market’. Our target market would be narrow because it
targets students in highschools and colleges. The target customers (students) are aged from 13- 23+
(around) therefore we would be missing out on younger students and people at older ages. We are
only targeting a section of the entire market. Our Cost strategy would be ‘Low cost” because we are
pricing our application consideraly low ($1.99) compared to other expensive apps that could be up
to $15 dollars. We price it low because our target customers does not pocess a lot of disposible
income.
The overall strategy is therefore Focused Low Cost
3.7 Value Chain Activity: Research and development
The most important value chain activity for this business is R&D.
Linking to the vision; we want to continually provide the best studying methods with what
technology can offer. We can achieve our vision by keeping R&D our top priority so that we can
create the newest and most ‘innovative’ ways of studying.
3.8 Business Processes

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3.8.1 RESEARCH AND DEVELOPMENT PROCESS
This process is after an R&D has been completed and is the process of the customer receiving the
new update. It begins by customer receiving notification that there is a new update. It will ask
permission for an update. If customer gives permission, customer will download update and install
update. Then the customer receives updated app and the process ends. If the customer didn’t give
permission to update. It will ask for permission again the next time they open the app.

Updating/delivering application BUSINESS PROCESS 1 MODEL
Displ ay update
notification to customer
Start
Ask permission to update
Customer starts
downloading update files
Does customer give permission to
update
Ask for permission to
update next time
customer opens app
End
No
Update is instal led
Customer uses updated
product
Product development department
Order Processing system
Yes
Send update files to
customer



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3.8.2. RESEARCH&DEVELOPMENT PROCESS
- This process begins by looking up the technological capabilities offered by the environment around
us. We then compare the technology with our current solution. Then we determine whether or not if
our current solution is behind the current technological level. If not, wait six months for technology
advancement to progress and repeat step ‘Look up current technological capabilities’. If yes, initiate
R&D, create a prototype of the product before releasing it. The process then ends.

Research and development BUSINESS PROCESS 2 MODEL
Look up current
technological capabilities
Start
Compare our current
solution level of
technology
Start research and
developing
Is our current ‘soluti on’ level of
technology under the current
technological capabilities?
Wait six months
End
Yes
No
Create prototype
Release product and
update application
Sales Region Analysis System
Research and development department



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3.9 Functionalities
3.9.1. UPDATING APPLICATION PROCESS
 Order processing system – identify that the customer said yes or no
 Order processing system - trigger ‘send update files’
3.9.2. RESEARCH AND DEVELOPMENT PROCESS
 Sales region analysis System - gather data about technology from enviroment
 Sales region analysis system - convert data into information
3.10 Systems

3.10.1. SALES-REGION ANALYSIS SYSTEM – We need this system to identify the current
techonological trends so we can update our product to the best technology can currently offer. It
must be able to collect and convert data that is understable so the R&D team can make a decision
whether or not we need to intiate product R&D. This is our core of our business which is improving
our product to the extent technology can offer.
3.10.2. ORDERING-PURCHASE SYSTEM – The process of asking permission will be automated,
we need this system to automatically determine if customer said yes or no. It will be inefficent if we
have to do this manually. Automation also speeds up the business process because its automatically
trigges the next step. In this case, it triggers ‘send update files’.
3.10.3. AUTOMATIC-INSTALLTION SYSTEM -
We will need the mobile app to automatically recongize the update files and install/change files
automatically to complete the update. Rather than having the customer replacing the file manually
which can taxing and if done wrong can cause errors.

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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)

R&D
1. Updating an
delivering
1. Identify if customer said yes or no

2. Able to trigger process ‘send update files’
Order-processing system

Order-processing System
Transaction-processing
system

Transaction-processing
system
2. R&D 1. Gather data from enviroment

2. Convert data into information
Sales-region analysis system

Sales-region analysis system

Executive-information
system

Executive-information
systems

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CONCLUSION
Overall, we are dependent on techonology such as the smartphone. We need the powerful
hardware for our app to run on.
Without automated systems everything will have to manully operated which can be costly and time
consuming.
This business requires only a few systems. The specific systems explained above are Order
processing systems and Sales Region Analysis systems. The industry in which this business would
operate in is unattractive, however it is a worthwhile investment to ‘have a go’ because the intial
investment cost is not huge compared to other industries. R&D is the leading value activity which
will continue to drive our business . We hope we can keep providing the best studying methods with
the techonology avaliable.

REFERENCES
1. Ministry of business, innovation & emplotement. (2014). The minimum wage.
Retrieved from http://www.dol.govt.nz/er/pay/minimumwage/

2. PewResearch, Teens fact sheet. (2013). Retrieved from
http://www.pewinternet.org/fact-sheets/teens-fact-sheet/

3. Teacher at risk. (n.d.). Retrieved from
http://www.teachersatrisk.com/2010/01/20/the-53-hours-a-week-teens-spend-
on-media-use-is-way-too-much-of-a-good-thing/

4. Cohen, P. (2014). Apple records $10 billion in Appstore Revenue in 2013, record
December. Retrieved from http://www.imore.com/apple-reports-10-billion-app-
store-revenue-2013-record-december

5. A sensitive issue. (2013). Retrieved from http://www.imore.com/apple-reports-
10-billion-app-store-revenue-2013-record-december

6. Wikipedia (n.d.) Google Play. Retrieved
fromhttp://en.wikipedia.org/wiki/Google_Play