INFOSYS.

110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014
Name Henry Le!n
Ne"ID #$e001
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Henry Le!n T#'r,4ay
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INFORMATION SYSTEM SOLUTIONS
INTRODUCTION
This startup plans to develop a mobile application that will allow users to make
donations and adopt pets from shelters, which are currently underfunded and
overcrowded. Working in partnership with the RNZS!", the program will provide
sophisticated matchmaking services between potential owners and pets, and
significantly streamline the formerly difficult adoption system, bringing elements of
convenience and fun to attract a new demographic to the process.
6. BUSINESS SECTION
6. 1 V! ,! &n
To generate a profit and solve animal welfare problems through the use of
technology and information systems.
6. 2 In4'," ry Ana$y,!,:
In4',"ry: The company operates in the mobile software industry, developing and
publishing smartphone software.
F&r2e: H!0#.L&7: 8',"!/!2a"!&n:
B'yer (&7er: H!0# #uyer power is very high in this industry.
!onsumers have many choices amongst
software, and there is no switching cost
associated with replacing a mobile application
$Suter, %&'%(.
S'(($!er (&7er: H!0# !ompanies like "pple, )oogle and *icrosoft,
who provide the platform, have considerable
power in being able to accept or re+ect
programs based on their own ,uality and
ethical standards. They can also choose to
raise or lower fees $the proportion of
advertising or sales revenue that charge
application providers for(.
T#rea" &/ ne7 en"ran",: H!0# -ften the main barriers for entry into an
industry are capital outlay and infrastructure
re,uirements. .owever, with the mobile
application market, capital e/penditure
re,uirements are generally very low, and
there are no significant fi/ed costs associated
with maintaining an application in the
marketplace $Suter, %&'%(.
T#rea" &/ ,'),"!"'"e,: H!0# The threat of substitutes in this industry is
also substantial. *any mobile applications
essentially duplicate services that can be
found on providers0 websites $#ashford and
!lark, %&'%(, or are eventually replaced with
builtin features provided by -S providers
2
$such as "pple or )oogle(.
R!a$ry am&n0 e1!,"!n0
2&m(e"!"&r,:
H!0# !ompetition between e/isting software
providers is fierce, with many companies
offering very similar products, which makes it
easy for consumers to change provider
$Suter, %&'%(. !ompanies must innovate to
attract and retain customers.
Oera$$ a""ra2"!ene,, &/ "#e !n4',"ry: The mobile software application industry is highly
competitive, with little security for all but the most established companies1brands, high buyer
and supplier power, fierce rivalry and new competitors coming into the market all of the time.
2or those that have managed to position themselves as leading providers, and established
an industry presence and following, it can be lucrative but for the rest, the vast ma+ority of
applications fail to turn a profit or even recoup their costs $!arare, %&'%(, $WS3, %&'4(.
6. 6 C',"&mer, an4 T#e! r Nee4,
The customers targeted by this software application are primarily those that are interested in
pets and their welfare, and those that are wishing to adopt pets or contribute to their welfare.
5t will be the most technologysavvy section of this demographic presumably the younger
segment $#ashford and !lark, %&'%(, that may present a previously untapped market for
RNZS!" services.
Their needs may range from wishing to adopt a pet of their own, to wishing to contribute to a
charitable foundation or provide for the welfare of a particular pet that has captured their
interest.
2or many of these customers, the 6traditional0 way of doing things may prove to be a barrier
to their engagement. $#ashford and !lark, %&'%(.
6. 4 T#e 9r&4'2" an4 Ser! 2e
The demographic identified above may find the e/isting methods of both adoption and
donation to be cumbersome. #y providing this service on a platform to which they are
accustomed, streamlining the process, and providing additional functionality that adds value
to the service $such as matchmaking(, the software is designed to appeal to this
demographic, which may not have been previously been effectively targeted in RNZS!"
fundraising efforts.
6. 5 S'(($ !er, an4 9ar" ner,
Supplier ' $latform roviders $"pple1)oogle1*icrosoft(7 latform providers provide both the
infrastructure $mobile devices1operating systems( and the users who will serve as the
software application0s primary market.
Supplier % $"ma8on !loud#ased 9atabase Storage(7 -ne of the key features of this
application will be an e/tensive database, consisting of both people and pets, to enable the
core functionality of the application $matching these groups(. To allow both the RNZS!"
and the software itself to contribute, the company will maintain a central, cloudbased
database, provided by an established cloud service1storage provider such as "ma8on
$http711aws.ama8on.com1rds(.
artner ' $RNZS!"(7 The RNZS!" provide one of the core components of this service.
"s well as maintaining the pets database, they will be the target of donations and adoption
fees $of which the software will take a percentage as revenue(, deliver pets from the shelter
$RNZS!", %&'4(, and provide branding for the program.
6
artner % $"dvertising(7 2or the software to garner the attention that it will re,uire to succeed,
e/tensive advertising will have to be employed. The startup would partner with an
established advertising company to provide a detailed media strategy to promote the
product.
6. : S" ra" e0y:
orter0s )eneric Strategy7
#road *arket 5n an industrial country such as New Zealand, a large portion of the population
has access to a smartphone. Similarly, pets and charitable donations appeal to a wide range
of demographics for a variety of reasons $genuine interest, ta/ writeoffs, cost, desire to own
a pet, etc(.
.igh !ost !ompared to the industry at large $where many of the mobile applications can be
purchased for less than :' $!arare, %&'%(, the nature of the services offered make the
program relatively e/pensive. While the software itself will most likely be free or ine/pensive
to download, the associated services $donation and pet adoption( are inherently e/pensive
particularly given the association with the RNZS!", who will provide the core upon which
the services are founded, but take the ma+ority of the revenue.
Thus the startup will most likely need to employ a differentiation model, setting themselves
apart from the competition by their charitable nature, their association with the RNZS!"
and its established branding, and the relatively uni,ue services on offer, which re,uire
considerable infrastructure $shelters, etc(.
The closest generic strategy match is differentiation.
6. ; Va$'e C#a!n A2" !! "y:
T#e m&," !m(&r"an" a$'e 2#a!n a2"!!"y /&r "#!, )',!ne,, !, &(era"!&n,.
-perations refers to the addition of value by the transformation of input to output as part of a
business process. This is the key value chain activity of the company, because rather than
producing products, the service aims to adds value by combining and 6transforming0 the raw
inputs into something more valuable, e.g. user1pet data to potential owner1pet matches, by
creating an easy, fun and convenient process out of the previously laborious adoption
scheme; and garner higher rates of consumer satisfaction through the use of its processes.
This connects to the differentiation strategy where the product will distinguish itself based on
the service that it provides and the systems that it implements7 the value created through its
operations, rather than based on cost or target market.
6. < B',! ne,, 9r&2e,,e,
The matchmaking1adoption process is a core part of the company0s operations value chain
activity, and where much of the value is added. The foundation of this process is taking a
difficult and cumbersome system, such as adoption from the RNZS!" as it currently
stands, and adding value by reducing and streamlining it, and through the use of the
integrated matchmaking system.
4
6. <. 2.
5
The data transformation1matching business process is integral to the functionality and vision
of the mobile application. The program adds value by transforming raw data $on pets and
owners( into useful information $user profiles(, and using this to create the optimal match
between the two. To provide this service, the software must first gather the data $some, for
e/ample, will be submitted by the RNZS!", who record personality characteristics when
they first take a potential pet into their care(, and then use it to generate a meaningful profile
$transformation( which will enable comparison of pet and owner information. The final step is
to take this information, and, through the matching system, find the most suitable pets for a
given owner, and present them for viewing so that the user can choose to adopt, donate, or
keep looking.
:
6. = F'n2"!&na$!"!e,
KEY FUNCTIONALITIES FOR BUSINESS PROCESS 1
!ollect payment The functionality of the software application to collect and process payment
from the customer.
!ommunicate with e/ternal sources The ability of the client to communicate with e/ternal
partners, such as with the RNZS!" $and possibly transport companies( to arrange pet
delivery.
Key F!ncti"na#ities $"% B!siness P%"cess &
!ollect 5nformation 2rom <sers The functionality of the software program to collect
information from users, through the use of ,uestionnaires, and by accessing e/tant user
profiles $e.g. 2acebook(.
Store 5nformation in a 9atabase The ability of the software program to store and retrieve
information in and from a centrali8ed database, which can be accessed by both the software
and e/ternal clients, such as the RNZS!".
6. 10 Sy," em,
System ' $*atching System( The matching system connects pets and potential
owners1donors by comparing data from pet and user profiles to determine the most suitable
matches. 5t will improve customer satisfaction by streamlining the adoption process and
ensuring better compatibility between pet and owner $e.g. active owners are paired with
active pets(.
System % $ayment System( The payment system is central to the program7 most platforms
provide a builtin mechanism for 6inapp purchases0, which the software would employ to
charge users for donations and adoptions, allowing the application to take a small
percentage to generate revenue.
System 4 $9atabase System(
The key to ensuring good matches, as well as providing generally intuitive and streamlined
service is a wealth of accurate data. Records will be maintained on both the users $provided
directly $e.g. ,uestionnaires( and indirectly $e.g. facebook profiles(( and the pets $provided
by the RNZS!" assessors(. This data will be kept in a central database, which can be
accessed and written to by the mobile application and turned into useful information by the
program when it is retrieved, to provide accurate matches and ensure optimum compatibility.
;
6. 11. S'mmary Ta)$e: Va$ 'e C#a! n " & Sy,"em,
Value Chain
Activity
Processes Functionalities Speci fic Information
System(s)
Broad Information
System(s)
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CONCLUSION
The startup intends to develop a mobile application to help connect users and the
RNZS!", by streamlining the adoption and donation process, and using technology to
provide a sophisticated matching system to ensure that the optimal match is made between
owner and pet. The mobile app market is a fiercely competitive industry, with a few key
players holding profitable positions, and the vast ma+ority failing to even break even. To
succeed, the company will employ a differentiation model, relying on the uni,ue position and
strong branding of its partnership with the RNZS!" to distinguish it from competitors; and
bring fun and efficiency to what was formerly a cumbersome process.
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