The document summarizes a business plan for a mobile app called RomanRoom aimed at helping students study. Key points:
- The app uses an ancient memorization technique and will be available on smartphones to provide studying methods using modern technology.
- The mobile app industry is very profitable but also competitive with low barriers to entry. The business strategy is focused on a narrow target market of students with a low-cost price point of $1.99.
- The most important business process is research and development to continually improve studying techniques using advancing technology. This will help achieve the vision of providing the best studying methods.
The document summarizes a business plan for a mobile app called RomanRoom aimed at helping students study. Key points:
- The app uses an ancient memorization technique and will be available on smartphones to provide studying methods using modern technology.
- The mobile app industry is very profitable but also competitive with low barriers to entry. The business strategy is focused on a narrow target market of students with a low-cost price point of $1.99.
- The most important business process is research and development to continually improve studying techniques using advancing technology. This will help achieve the vision of providing the best studying methods.
Original Description:
Plubished by Jackson Yap
Auckland University
Infosys 110 deliverable 2
The document summarizes a business plan for a mobile app called RomanRoom aimed at helping students study. Key points:
- The app uses an ancient memorization technique and will be available on smartphones to provide studying methods using modern technology.
- The mobile app industry is very profitable but also competitive with low barriers to entry. The business strategy is focused on a narrow target market of students with a low-cost price point of $1.99.
- The most important business process is research and development to continually improve studying techniques using advancing technology. This will help achieve the vision of providing the best studying methods.
The document summarizes a business plan for a mobile app called RomanRoom aimed at helping students study. Key points:
- The app uses an ancient memorization technique and will be available on smartphones to provide studying methods using modern technology.
- The mobile app industry is very profitable but also competitive with low barriers to entry. The business strategy is focused on a narrow target market of students with a low-cost price point of $1.99.
- The most important business process is research and development to continually improve studying techniques using advancing technology. This will help achieve the vision of providing the best studying methods.
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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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2 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 theyve 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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3 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 dont 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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4 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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5 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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6 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 didnt 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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7 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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8 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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9 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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10 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
S.110 Business Systems: Deliverable 2: Business Section 2014 Name Marthalena Heather Netid Group Number: Website Link: Tutorial Details Tutor: Day: Time: Time Spent On Assignment: Word Count: 1641