ENT 600: NPD (NEW PRODUCT DEVELOPMENT)

TITLE PAGE

NEW PRODUCT DEVELOPMENT OF POSTO APP

Faculty : FACULTY OF CHEMICAL ENGINEERING

Program : BACHELOR CHEMICAL ENGINEERING
Program Code : EH 220
Course : TECHNOLOGY ENTREPRENEURSHIP
Course Code : ENT 600
Semester : 7
Group Name : 7H
Group Members : 1. MOHD AIZUDDIN B SALIHFUDIN
(2016250314)
2. NUR ILHAM BT ZAINUDDIN
(2016250248)
3. FATIN NABILA BT ARIPIN
(2016250476)

Submitted to
DR MOHD AZMAN IBRAHIM
Submission Date
20 December 2018

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ACKNOWLEDGEMENT

First and foremost, we would like to thank ALLAH S.W.T and His messenger, Prophet
Muhammad S.A.W. Due to His blessing, it is possible for us to finish this case study. We had
finally managed to finish up this group project with great enthusiasm and determination. All the
time spent to search and discuss the ideas as well as justifying theoretical clues to drive the output
were worth our effort and time.

Therefore, we would like to acknowledge with thanks, the individuals who had guide us in
making this project. Firstly, we would like to thanks to our lecturer, Dr Azman Ibrahim. He had
guided us on how to complete this case study. During his classes, he always provides his idea
for us to improve our study. Then, we would like to thanks to all our friends who had helped and
share their opinion with us. They also gave us support and advices. Lastly, we also want to thanks
to our parents who always prayed well for us and support us.

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TABLE OF CONTENT

PAGE
TITLE PAGE ................................................................................................................................................ i
ACKNOWLEDGEMENT ........................................................................................................................... ii
TABLE OF CONTENT ............................................................................................................................. iii
LIST OF FIGURES..................................................................................................................................... v
LIST OF TABLES ....................................................................................................................................... v
EXECUTIVE SUMMARY ......................................................................................................................... vi
1. INTRODUCTION ................................................................................................................................ 1
1.1 Background of Study .............................................................................................................. 1
1.2 Problem Statement .................................................................................................................. 2
1.3 Methodology .............................................................................................................................. 2
2. NEW PRODUCT DEVELOPMENT ................................................................................................. 4
2.1 Definition .................................................................................................................................... 4
2.2 Classification of NPD .............................................................................................................. 5
2.3 New Product Development Process ................................................................................... 6
2.3.1 Research and Development .......................................................................................... 6
2.3.1.1 Idea Generation ........................................................................................................ 6
2.3.1.2 Idea Screening .......................................................................................................... 7
2.3.1.3 Market Survey ........................................................................................................... 8
2.3.1.4 Customer Trend Canvas ...................................................................................... 12
2.3.1.4.1 Analyze .................................................................................................................. 13
2.3.1.4.1.1 Basic Need .................................................................................................... 13
2.3.1.4.1.2 Driver of Change.......................................................................................... 14
2.3.1.4.1.3 Emerging Customer Expectation ............................................................ 15
2.3.1.4.1.4 Inspiration ..................................................................................................... 16
2.3.1.4.2 Apply ...................................................................................................................... 17
2.3.1.4.2.1 Innovation Potential.................................................................................... 17
2.3.1.4.2.2 Who ................................................................................................................. 17
2.3.2 Product Design and Features ..................................................................................... 18
2.3.3 Concept Testing ............................................................................................................. 21
2.3.4 Prototype .......................................................................................................................... 21
2.3.5 Test Marketing ................................................................................................................ 22

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3. CONCLUSIONS ............................................................................................................................... 23
4. REFERENCES ................................................................................................................................. 24
5. APPENDICES................................................................................................................................... 25

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 ENT 600: NPD (NEW PRODUCT DEVELOPMENT)

LIST OF FIGURES

LIST OF TABLES

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EXECUTIVE SUMMARY

This entrepreneur report is a part of the elective subject for our Degree of Chemical Engineering

(Hons) Program. The objective of this subject is to help students to familiarize the basic of

business management. This writing report is about the causes that leads to the improvement of

ready apps. This report included the introduction that discuss the detail of the main objective and

problem statement. In order to understand the objective specifically, we need to collect and

analyze data from people that involved to support the research of the study. From the feedback

obtained by customers, the possibility success for this new app development can be forecasted.

The app development idea for the POS Malaysia company was adapted based on the previously

SWOT Analysis conducted on the company. The POSTO app seems to be the most effective to

solve the problems that become public knowledge nowadays. POS Malaysia company is

commonly known as company that provide postal and courier services by the public perspective.

In addition, the company also known with inefficient services that resulted with bad review from

the most of the customers. POSTO app design with updated and user friendly technology that is

highly accessible via internet connection become major effort proposed that capable to fix the

problem. With simple simulation of the app prototype, the features and user interface of the app

was shown in the report. Progressively, quick testing on the app concept and marketing were

conducted to study the feasibility of the app in the future. It is because the public opinions which

are the main customers for this company does matter to ensure the company position in market

in the future.

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1. INTRODUCTION

1.1 Background of Study

Currently, the world depends on technology and everyone from the young to the old seem
to be deeply involved. Technology has become one of the most important elements in today’s
societies and its role in our daily live keeps getting complex. It is true that it has impacted all
sectors of the society and even helped to increase efficiency and effectiveness. However, some
people also say that it induces laziness and can cause people to focus more on the fun side of it
instead of working and using one’s time well. It is true but no one can dispute the fact that
technology has helped to improve our lives and changed things for the better. The integration of
technological innovations into different dimensions of our lives has indeed helps to transform the
world and to improve the efficiency in almost everything we do. Technology takes different forms
and nowadays people provide various descriptions about it and a majority these are dependent
on what or how it has been effective in one’s job.

Mobile apps are one of the innovation of technology. Custom mobile apps can be partially
or fully personalized to suit the specific business needs. These apps are altered to address a
particular audience rather than providing a solution which caters to a large group with varying
requirements. This is the main reason why custom mobile app development is gaining attraction
and providing to be an attractive option for businesses.

Nowadays, businesses of all kinds whether small, medium or large scale are taking
advantage of the customized business apps as it helps them stay competitive and increase
productivity. POS Malaysia also included for this opportunity in order to gain more profit. There is
an app from POS Malaysia that can be installed. However, the option of applications and
transaction provided seem to be less effective due to the limited option.

In this study, improvement of the readily apps of POS Malaysia will be focused on. the
current mobile apps of POS Malaysia only offered five simple options which are track and trace,
postage calculator, postcode finder, outlet finder and validate prepaid. Regarding to this offer,
majority the customers have no interest for downloading the apps. This is because there are no
beneficial to own this app on the screen of the mobile.

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1.2 Problem Statement

Regarding to the readily apps of POS Malaysia, there are only five option provided and
there is no involvement of bill payment transaction which most of customer used it. This showed
that POS Malaysia did not fully utilize the usage of internet at the maximum limit even though they
have that opportunity because the profit gained from that apps will improve their financial.

Tracking number lead to bigger issues to online seller and customers. This is because
people tend to do mistakes when they need to rewrite the numbers because tracking number
contained 13 numbers included with letters. It is impossible for people to memorize those number.
Besides, the possibility of losing the receipt is higher. This is highlighted by rewriting tracking
number is a troublesome to the customer.

For the track and trace system, there are always had problem for the delay in update of
information. The system only update twice in a day and when comes to the holiday, there is no
information regarding to the parcel because no staff working on that day. The implementation of
real tracking system by using GPS is possible however the implementation requires high
investment cost.

The common issues that occurred for all the kiosk in Malaysia is the kiosk will be crowded by
employed customer during lunch hour because only that time they have opportunity to settle all
their responsibilities regarding to utilities bill.

1.3 Methodology
In order to analyze the problem and find the solutions to overcome the problem regarding
to the business, the main method used is observation of a few center of POS Malaysia, POS Laju
kiosk and the system that involved with this company.

Based on observation method, we found that only lunch hour the POS Malaysia center
become crowded. From the observation, majority of the crowded consist of government employee
or people that have to work during office hour. This decision had been made from their
appearance and types of dress code. From our view, most of them queue up not to post any
parcel because they don’t bring any parcel but they paid the utilities bill and license renewal.

Regarding to the losing of tracking number, we as customer of POS Laju always

experienced ourselves. Not only by us but we also interviewed some of the walk in customer that
available at POS Laju. The answers are same with us. The similar answers that we get from them

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were they forget where they keep the receipt and they throw away the receipt because they can’t
differentiate between old and new receipt.

The last method that we did is accessing the system of track and trace while waiting for
our parcel. We accessing the system that in progress. Normally, the system is updated twice in a
day which are at the morning and evening before 5 p.m. However, there is no update information
in the system during holiday due to there is no staff that working. Besides, the location showed in
the system was very general.

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2. NEW PRODUCT DEVELOPMENT

2.1 Definition
For the new product development, POSTO app is invented as a new improvement product
that were developed as the effort to solve the problems identified from the case study paper. The
name, POSTO is selected to represent the app because back in the past, most of the Malaysian
called the service delivery as “Posto” and this name actually suitable to be used due to its
nostalgic memories that matched with the original identity of POS Malaysia company in the past.
The POSTO app is a platform created to interact with the customers whether existing or new
customers that suitable with the current era that utilized most of the technology facilities to conduct
any transaction.

In the report, the details on how the app is developed were carefully explained and
discussed from the beginning phase until the final phase. NPD report only highlight on the
preliminary stage and the development stage. In the preliminary stage, the research was carried
out based on the specified methodology to obtain data and market insight on the idea proposed.
Meanwhile, in the development stage, the report highlight on the features and design of the app
functionality that will be available in the app, once it launches in the future.

Other than that, the trend of the customer onto the product innovation was also study with
the usage of the CTC, Customer Trend Canvas tool. CTC used to understand and apply the idea
of the product innovation concept onto the customer trend. A set of specific aspects were identified
and pinpoint to enable early insight on the innovation capability towards the customer once it
available for customer access in the future.

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2.2 Classification of NPD

For the classification of new product development, generally there are two types of
classification that available to identified any new product development process which are consist
of 6 steps. The stages are new to world products, new product lines, additions to existing product
lines, improvements and revisions of existing products, repositioning and cost reductions. Before
begin classification, the new product development process of the POSTO app, two main or
principal need to be considered. The consideration is how new is the product to the company and
the next is how new is it to the market place.

Based on the 6 stages mentioned above, four classifications are applicable to the POSTO
app except for the first and second stage which are new to world products and new product lines
respectively. The first one is exempted because online apps products are not a new kind of
product that entirely in the market. There are millions of online apps that available in the online
store for both free apps and paid apps. Meanwhile for the second stage which is new product
lines is also exempted because POS Malaysia already established online apps that provide a few
services and this POSTO app introduction is not a new online platform business approach done
by the company.

POSTO app is a new addition to existing product lines which are two online apps that
already established by the company which are POS Malaysia Online and POS Laju Track and
Trace apps. This new app main purpose is to improve the current app capabilities by include a
numbers of new transactions and features that never been done by any delivery business
company. This app will be the first in its kind to available in Malaysia. Through this app, the
repositioning of the existing customer that utilized current POS Malaysia services to utilized the
same services but in the easier ways as strategy to continue monopoly the delivery market
segments in Malaysia.

This NPD also serve as purpose to reduce the cost especially, the operating cost because
it will reduce the need for the skilled staff for the customer services purposes that carried out over
the counter in the outlet. It also will reduce the traffic of customers’ visit to the outlets for do any
transactions as most of the transactions will be available in the online platform.

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2.3 New Product Development Process

2.3.1 Research and Development

In the whole journey of developing this digital product, the research and
development process is the most vital part to start develop the product. During R&D
process is where the foundation for the conceptual thought and ideology were built and
analyze. For the new product development R&D process consist of three main element or
stages which are idea generation, idea screening and market survey. In the idea
generation stage, the details on how the app solution were conceptualized based on the
real problems faced by the company were discussed. Meanwhile for the idea screening,
most of the ideas conceptualized from the idea generation were analyzed in more depth
and rough estimation on the feasibility were done to segregate the ideas. Then, the
selected ideas that screened will be conceptualized in terms of its new intervention and
its capability to market were assessed based on the real life market segment.

2.3.1.1 Idea Generation

Based on the case study outcome, the solution on how to fixed the lack of online
platform app performances and the company incompetency in developing a large
community of customers in online platform were discussed. Idea is. The idea generation
process was done through brain storming in the team. All the team members are free to
speak on their opinions and plan on how to improve the weaknesses. As one of the POS
Malaysia loyal customers, each of the team members have their own feedback and
comments regarding the services provide by POS Malaysia company. Most of the ideas
generated highly fulfill other customers’ needs. Other than that, the idea generation also
were collectively by review the other customers’ complaints and feedback online through
the browser, blogs, social media and other relevant reading materials.

Most of the customers prefer POS Malaysia improved the existing services by any
mean of methods to ensure the smoothness operation daily. Nowadays most of the people
in the planet own their personal smart technology gadget that has direct access to the
internet such as smart phones, tablets, laptop and even personal computers.
Subsequently, most of the transactions nowadays are available on online platform such
as educational applications, shopping, banking affairs, finance trade, transportation

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access and even to ordering food. As the result, due to easy access to these transactions,
most of the consumers prefer to use online platform to fulfill their transaction needs. Other
than that, the emergent of new online apps such as social media and online shopping
apps have tremendously improve the e-commerce growth business. These kind of apps
allowed the customers to have their own personal account that capable in notify and
participate in the active activity provided in the app. So the idea generated focus more on
online apps introduction that can provide personal account for each customer and
eliminate the needs for them to go to the POS Malaysia outlets to complete the
transactions.

To develop an efficient app, many features need to be added to ensure the

effectiveness and usefulness of the app for the customers. Numerous ideas of what kind
of features and services available in the app were generated and the significance of the
ideas were evaluated through the idea screening process where a closer look upon each
idea were done collectively. Among the ideas generated are implementation of personal
account for the users, bill payment services, advanced track and tracking system, real
tracking system of on route delivery, ASB online transaction system, online prepaid top-
up, instant transaction submission via internet, unique id system, detail notification system,
POS Delivery prepaid system and virtual membership card.

2.3.1.2 Idea Screening

In the screening process, all the ideas generated were evaluated one by one to
ensure the feasibility of the features added will give benefit to the company. The ideas
were evaluated based on the strategies and marketing trends of the features that available
in other apps in online platform. Firstly, for the account registration and personal account
ownership for the users. This is the most basic features that need to present in any online
apps and it is a must have item for most of the services apps. Even most of the games
apps have account system. The registration can be done easily with usage of email or
mobile number. Only basic information such as name, address and contact numbers that
required for each of the account. This information will be used for delivery purposes. On
top of that, this information can be presented at any POS Malaysia outlet in digital form
such as unique id code number and ready scanned personal QR code. These form readily
contained three basic information that required for delivery transactions. This features

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already exist and available in app like WeChat for contact exchange, Boost for payment
transaction or GSC Cinema app that used as ticket for access the cinema hall.

For the other ideas that mainly focused on the features and transactions that will
be available in the developed app only the common and useful ideas were accepted. The
idea that were not feasible or risky will be screened away from the consideration.
Examples of ideas that were screened to the next evaluation process are advanced track
and tracking system, ASB online transaction system, online prepaid top-up, instant
delivery transaction submission via internet, unique id system and detail notification
system. These ideas were considered as features that should be included into the app
because most of these features are the basic necessities required by the customer. Other
than that, most of these conceptual ideas are generated based on the demand of the
customer that proposed these kind of solution that should be available.

Meanwhile for the real tracking on route delivery system where the customer can
track the ongoing parcel delivery the deliver by any POS Malaysia transport such as Grab
app where the customers can track the arrival or view the arrival or on route trips on live
feed. This system required advanced preparation for the company as all the transport
have to be equipped with GPS device to ensure ongoing connection for location trace
purposes. For the last idea, which is the POS Malaysia prepaid system that have similar
function like Touch N Go where it can be used for online payment purposes when doing
business in the physical outlet. Both of these ideas, are less feasible to be pursued by the
POS Malaysia that lack of experience in online platform management. Other than that,
very expensive investment was required to realize these features as very high initial
operating cost that required to start up this features operations.

2.3.1.3 Market Survey

To study the feasibility of the new product development, preliminary study on the online
app were done to estimate the product survival capability for both short term and long term
duration. Two types of study were done which are the study on the existing online app
market in Malaysia and the other one is the study on the potential customers. In the survey
that involved the potential customers, brief questionnaire was distributed via online apps
such as Whatapps and Twitter. The questionnaire focus on customer opinion and

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perspective on the POS Malaysia current operational performance. Other than that, the
questionnaire also asked for their opinion on the POSTO app innovation and their
acceptance towards the app. About 30 respondents responded on the questionnaire and
the summary of the results will be summarized in this section.

In Malaysia, according to Google the smartphone penetration in Malaysia is now 51%

and this made every 1 in 2 adults in Malaysia are smartphone users. Other than that,
Malaysia also is one of the highest internet penetrations in South-East Asia at 85.7% and
mobile penetration at almost 140%, making it one of the fastest growing emerging e-
commerce markets in the region. Due to the strategic demographic factor of Malaysia, it
become strong foundation to launch digital products across South-East Asia, where the
digital economy is expected to grow from US$50bil (RM205.3bil) to US$250bil (RM1.03
trillion) in the future about the next seven years. Grab which is one of the main e-
commerce company is started in Malaysia and currently expanding to the almost all
country in the South East Asia. Department of Statistics in Malaysia also forecasted that
e-commerce business growth rate in Malaysia will increase at almost double, from 10.6%
in 2016 to 20.8% by 2020. This market outlook in Malaysia provide a good signal to
continue with the app product development because the market seems promising and the
less competitions available in the online platform could assure company position in the
future.

Meanwhile for the market survey that were conducted with the 30 respondents, a brief
questionnaire that already answered are summarized below. The results are represented
in pie chart form to improve visual comparison. Only significant questions were highlighted
from the whole questionnaire.

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Current Over-counter Services Provide by POS

Malaysia
7%

17%
20%

13%
43%

Highly satisfied Satisfied Neither Unsatisfied Highly unsatisfied

Figure 2-1: Respondents opinion on current counter services at POS Malaysia outlets.

Current Delivery Service Provide by POS Malaysia

10%
27%

27%

3%
33%

Highly satisfied Satisfied Neither Unsatisfied Highly unsatisfied

Figure 2-2: Respondents opinion on the current delivery provide by POS Malaysia.

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Current POS Malaysia apps installation in

smartphone

7%

93%

Yes No

Services will be available through online platform

3% 3%
7%

33% 54%

Highly agree Agree Neutral Disagree Highly disagree

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2.3.1.4 Customer Trend Canvas

Basic Need Driver of change Innovation Potential
 Logistic need  Economic uptick that improve purchasing  Reduce crowded consumer traffic in the
 Common government and private sector power. major outlets.
services  Emergence of online-shopping apps on  Reduce operating cost on hiring staff for
the internet. customer services purposes.
 Increasing demand in product from e-  Reduce number of transaction procedure
commerce industry. required for delivery business.
 Utilization of highly used social media  Improved logistic efficiency.
platform for business purposes.  Improved data management.
 Change in many organization policy by  Attract strategic partnership.
provide online access for most of the
common services and transactions.
Emerging Customer Expectation Inspiration Who
 A simpler procedure for delivery and other  Efficient services provided by well-  Existing customers.
services. established e-commerce organizations in  Early adopters in online business.
 The ability to satisfy most of the interact with their customers through  Online shoppers.
customers’ needs and desire in one online online platform.  Online sellers.
app platform.  Advancement in technology industry that
 A more efficient delivery services system. improved consumer access to the market
 Freedom to conduct transactions anytime and knowledge.
and anywhere.
 Direct access to basic and necessary
transactions or services.

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Customer Trend is a business tool that inspired by Alex Osterwalder’s, and the Consumer
Trend Canvas was created by Trendwatching.com. It is a simple framework that can help to
understand any consumer trend and help the application to launch successful consumer-facing
innovations. Generally, the canvas is a key for building an innovation. The customer trend towards
the new innovation of Posto app which developed by the company become the main interest in
constructing the canvas. The canvas framework consists of two main elements which are analyze
and apply. The analyze elements were written on the left side of the canvas meanwhile the apply
elements were written of the right side of the canvas. The analyze elements were made for
understand the interested trend that were examined and consists of basic needs, drivers of
change, emerging customer expectations and inspiration. For the second element aspects are all
about what kind opportunities that these trend can deliver to the business. The aspects are
business potential and who apply to this trend. The details on the Customer Trend Canvas are
explained below:

2.3.1.4.1 Analyze

2.3.1.4.1.1 Basic Need

For fulfill the basic needs requirements, the most important question that need to
be answered during its development is what kind of deep consumer needs & desires does
this trend address. Obviously, the company innovation is target to solve or fix all the
problems explained in the previous problem statement section. For the Posto app
innovation, it fulfills the most basic need for logistic desire of the customer because
obviously, the POS Malaysia Berhad is the most well-known postal organization business
in Malaysia. By launching this new innovation, the logistic need of the customers could be
fulfilled as the one of the main purpose of this app creation is to improve the current
delivery system that always upset the customers.

Other than that, this innovation also aims to fulfill the customer need in government
and private sectors services as it will feature a lot of services that could be accessed
directly without arise the need for visiting the outlet to do the transactions manually.

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2.3.1.4.1.2 Driver of Change

The drivers of change foresee the factors that cause the drift for the change to
occur. These drivers provide opportunities and allow the creation of the innovation. The
drivers of changes could be identified as shifts and triggers. These two types of driver
categories are differentiate based on their short- term or immediate and long-term
changes that affecting the customer trends. Shifts are the long term changes that playing
out for a long period of time or even decades that help in shape the directions of the
customer trend such as urban transition or climate challenge. For this Posto app
perspective, the macro changes that cause for the urge to serve the customer basic needs
in better ways is the economic uptick that improve the consumer power in the market as
the time goes by.

Nowadays, as the economic bloom, the human living standard are getting
increases day by day and these phenomena has increases their basic needs and desire
in daily life. These situation has created opportunities for the business organization to fulfill
their demand with numerous products and services in the market. Due to introduction of
new products and services that match with technology development and newest era, the
customers nowadays have a lot of choice and these has improved their purchasing power
in the business industry. These trend were developed for a long time ago and has cause
many revolutions in many business natures.

Meanwhile, for the second category which is the triggers that define as more
immediate changes that drive the emergence of the consumer trend. In this report, there
are many triggers that drive for the change to create this Posto to fufill customer needs.
Increasing demands of the customers towards the e-commerce products have become
one of the main drivers that trigger the trend. Not only trigger the customer trend, the
increasing demand also have created another major trigger which is the emergence of
online shopping company that available in the online platform to fulfill the increasing
demand. The famous e-commerce online shopping companies that have well-established
public image nowadays are Lazada, Shopee, Mudah.my and Zalora.

Other than that, the explosion of the social media utilization in online business also
become one of the immediate changes that drive the customer trend. Nowadays, most of
the smartphone users have their own social media account in various social media
platform such as Instagram, Facebook, YouTube and Twitter. Most of the social influencer

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that have thousands of followers will utilize this platform to generate income by market
any kind of products or even services. This kind of platform is very strategic and effective
in getting customer attention and improve business marketing. In addition, the changes in
policy for certain organization in introduce new channel of access to their products or
services have instantaneously become one of the major trigger.

Most of the organization that provide product or services business nowadays

introduce a new way to communicate with their customer by putting their business up into
online platform to improve business transaction with the customers. Huge international
company like Watson and local company like Mr. DIY have putting their business online
by launching an app where the customers can buy their product online and will be
delivered to customers by the courier companies. All of these drivers of change have
cause the POS Malaysia Berhad company to adapt with the changes and grab the
opportunities to create technological invention to fit between these drivers in order to serve
the customer needs.

2.3.1.4.1.3 Emerging Customer Expectation

With the existing customer experience with numerous online apps that provide
variety of services such as online shopping app and online banking, the customer
expectations on the Posto app will be very high. This is because POS Malaysia is well
known company that have well diverse experience in many business nature and so many
resources to create a new innovation. Firstly, customers will expect the app will improve
their access towards the basic and necessary transactions that currently only available on
the POS Malaysia counter services. The common transactions that normally do by
household communities will be expected to be available in the online app.

Secondly, as the delivery business organization, the customer will be expected the
Posto app will provide a simpler procedure for delivery transactions for both postal
business and courier business purposes. The app will certainly reduce a few steps that
normally required in delivery transactions such as filling personal information form for
parcel attachment. Other than that, the customer also expect the Posto app have the
ability to satisfy most of the customer needs and desire in one online app platform. This is

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because POS Malaysia outlets are well known for one stop facilities that provide numerous
services for certain private organization and most of the government organization.

Finally, the customer trend expectations towards this new innovation are there will
be a more efficient delivery services system and common delivery problems could be fixed
with the assistance of the app. The track and trace of the delivery parcel can be made
easier with the immediate notification features provided in the app. With the launching of
this app, the customer will be expecting that they were given the freedom to conduct
transactions anytime and anywhere through the Posto app online platform.

2.3.1.4.1.4 Inspiration

The advancement in the technology industry have cause the major revolution in
the worldwide human culture. The creation of the smartphone has change most of the
things were used be especially in information transfer. The uses of smartphone and other
technology gadget have improved the information sharing between the users. Various
medium and features available in the technology gadget such as via QR code scanning,
social media chatting apps and other relevant channel become one of the inspiration in
Posto app invention. These technology advancements have improved the consumer to
the product and services market and also improved their knowledge. These
advancements have become major inspiration to invent the Posto app, as POS Malaysia
believe the customer demand this kind of products to improve the business.

Meanwhile with the current reputation of online shopping company that provide
their services via online app platform that capable in deliver efficient services to their
customer become inspiration for POS Malaysia to do the same. The systematic
management especially in their direct interaction with customer through online
communication have allow for the customers to build trust and loyalty. This direct and
transparent transaction between the customers have become the objectives for the POS
Malaysia to achieve. This is because nowadays, customer demands to be more controlling
and notified on the business transactions that were done.

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2.3.1.4.2 Apply

2.3.1.4.2.1 Innovation Potential

The Posto app will certainly give a lot of positive potential on the current operational
system in POS Malaysia. The new product application improved the operational by fixed the
major issues that always bugging the management and even the customers for a long time.
The high and crowded traffic of customers in the dense area will be reduced as the app will
provide most of the transactions on the online platform. Other than that, the new innovation
also will benefit the financial position of the company as the annual budget for the operating
cost will reduced. This is because the need to hire more skilled employees will be reduced as
the manpower sources required at each outlet for customer services purposes decreases.

The Posto app also will improved the logistics department that handle the transportation
and segregation of the customer’s parcel will be more efficient. Due to the efficient notifications
features that capable in notify the customer beforehand when the delivery is on route will
decrease the undelivered parcel problem. As the Posto app will be record the personal
information of the customers in their own database, the data management on the customers
will be improved. The data will be easily handle and stored with more systematic and
computerized system. Furthermore, the innovation also will improve the transactional
procedures for completing delivery business as the Posto app will reduce the need to fill any
form during conducting business at any POS Malaysia outlet.

Finally, the innovation also will open new opportunities for the company to have improved
business diplomatic alliance relationship with any potential business organization as the app
will encourage strategic partnership with recognized business organization. This will certainly
improve the marketing image and public perspective towards POS Malaysia Bhd.

2.3.1.4.2.2 Who

During developing the app, groups of consumer are identified and included in the
target customer that will utilized this new innovation in the future. The main customer group
that were targeted to be using this app are the existing customers that are currently enjoy
POS Malaysia services. The current customers become the main target because these
existing customers are majority of the Malaysia citizens and the urban residence become

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the major highlight to be targeted. Most of these people required the logistics services
daily to deliver any of their parcel. Besides that, e-commerce customers that consist of
online shoppers and online sellers also become the target consumer in the future. It is
because the new interface introduce in the Posto app is very user friendly and highly
accessible by any smartphone users that used to any e-commerce app. The same
interfaces and concept were implemented during designing the app features. The new
adopters or newbies in the online business industry also become the target consumer
because this app will ease their daily business transactions especially in keeping records
and transactional history made with previous customers.

2.3.2 Product Design and Features

In this section, an explanation about POSTO mobile application that is functioning to upgrade
the service offers and help for the smoothness operation in the existing POS Malaysia mobile
application is being justified. This application is designed and created to satisfy the human current
needs, which we know that people nowadays almost get no time for the long queue up in post
office to settle their business.

The Design Explanation

1. The interface
The user interface for this POSTO
mobile application is to fulfil the people
current needs. The colour chosen is
still based on POS Malaysia theme to
maintain the identity of POS Malaysia.
2. The Icon
There are 11 icons in the POSTO
interfaces which are Recent News
about POS Malaysia, Location of the
Post Office in Malaysia, Postage Rate,
E-Wallet, Notification, POS Malaysia
Contact, Help Centre, Home, QR
Scanner, Menu and Profile Details.

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3. The Menu Interfaces

This one will display the business
offers in this POSTO mobile
application such as Bill Payment,
Transaction, ASB Saving and E-
tracking. Now, all this business can be
through online.
4. Logout and menu icon
This logout icon is for the safety of the
users; hence they can logout if they
have logged in others people hand
phone before. The menu icon is
functioning to go back to home page if
they have finished their business.
5. Bill Payment
This is the list for the bill payment
services offer such as loan payment,
Islamic product like ZAKAT, utility bills
payment, Telco bills payment, rents
payment and government service
such as taxes.

6. Transaction
There are two categories in
transaction which are the users’ on-
going transaction and their postage
history. Every time the customers had
received their items, the POS
Malaysia delivery man will update in

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this application and also they can view

their history of the transaction. For the
on-going transaction, the users will
know how many transaction or items
they haven’t received yet.

7. E-tracking
E-tracking is functioning to track the
users parcel using this POSTO mobile
application. In e-tracking system,
there are two options the users can
use, either using tracking number
where they need to key in the number
or using QR code, which they only
need to scan the QR code. It is more
convenient to use QR code rather
than tracking number because
sometimes the users forget to keep
the paper consist of the tracking
number.
8. The Profile Details
Here, the users can view their own
details in this application. The
application will display the users’
details such as their QR code, ID
number, name, present address, hand
phone number and email. This QR
code can be shared with other people

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to facilitate the dealings especially for

online sellers.
9. User Edit Icon
This icon is running to allow the users
updating their information. Each of the
information created at this page can
be shared through online chatting app.
The information can be shared by
send the QR code the unique ID
number. There is no need for the seller
to key in all the information required in
the transaction field. The QR code will
automatically generated all the
information of the customer.

2.3.3 Concept Testing

To assess the feasibility of this Posto app, a simple simulation or demonstration were
done. The function and the features of the app was introduced to the current POS Malaysia
customer that doing business at the POS Malaysia outlet. In this concept testing, the venue of the
demonstration that were conducted were at POS Malaysia that located at UiTM Shah Alam.
During the demonstration, random customers were chosen and the short video demonstration
that show the on how the app works. The step by step procedure on the functions of each features
that available were visualized and become it the major highlight in the demonstration video.
Before the video were showed to the customers, a basic question that demand the respondents
to rate the current POS Malaysia services were asked.

Then the demonstration video was shown to them. Most of the respondents

2.3.4 Prototype

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2.3.5 Test Marketing

For the test marketing strategy, we suggested the Company to utilize the existing business
platform to promote the new product innovation. The company has various business platform that
have close proximity with the customer and the public. For example, POS Malaysia company
have thousands of post office outlets and also existing well established website that can be used
as the platform to notify the customer regarding the new mobile app. In addition to improve the
number of users at the beginning of the launch of the new mobile app the company can open pop
up booth at the major outlets. The pop up booth will provide assistance to the customers to install
the app and provide brief tutorial on how to use the app. Due to wider coverage thanks to
thousands of outlets in Malaysia, the company do not have to organize major event or even join
any business expo to promote the product.

Meanwhile for the smaller outlets or outlets that located in the remote areas, the company
can provide reading materials to be distributed to the customers. The reading materials should be
interactive and user friendly so that the customers can easily understood and follows the
instruction to install the app. The printed QR code need to be included so that the app can be
download directly via scanning the QR code printed on the brochure. Other than that, POS
Malaysia also can notify the public via their official website.

In addition to the test marketing strategy, the company can do the strategic partnership
with the existing e-commerce company that have well-established marketing share in Malaysia.
The company can promote the app via their app home feed or even email their customers to notify
the information regarding the app. This is quite strategic proposal that can be done because most
of the e-commerce company that provide online shopping services rely on the POS Malaysia
courier and delivery services to deliver their customers' orders. POS Malaysia could utilize this
opportunity to reduce the marketing cost because the promotion was done through the online
platform. The well-established e-commerce company like Shopee fully rely on the local logistics
company to fulfill all of their customer’s order because they do not have their own delivery services
unlike Lazada that launched their own delivery service which is LEX, Lazada Express to fulfill
urban area order delivery.

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3. CONCLUSIONS

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4. REFERENCES

Read more at https://www.thestar.com.my/news/nation/2018/09/09/leading-the-way-in-new-age-

living-malaysia-now-poised-to-be-the-market-leader-in-app-development-
sec/#ClbHkfqzV781e71o.99

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5. APPENDICES

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