Name Callen Baxter NetID cbax988 Group Number: 058 Website Link: http://infosys1102014fcgroup58.blogspot.co.nz Tutorial Details Tutor: Day: Time: Kayur Ramson Monday 12pm Time Spent on Assignment: 15 Hours Word Count: 1650
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2 BUDGETBUDDY INTRODUCTION Personal debt is an ever-growing problem in our society, and unfortunately people lack the motivation to do anything about it. To motivate and ensure money management we created the BudgetBuddy app, which tracks, monitors and forces people to stick to their budget. Budgeting is seen as hard and problematic, by creating BudgetBuddy, which removes the hassle and stress, it solves the motivation problem and helps people effectively manage their money. 3. BUSINESS SECTION 3.1 Vision To create a debt free world 3.2 Industry Analysis: Budgeting Application Industry Indusrty: Budgeting Application Industry Force: High/Low: Justification: Buyer power: Low Low because if they wish to have an automated budgeting system rather than something that requires manual entry they are forced to purchase a budgeting app of some form. Supplier power: High Due to the high number of competitors in the application industry there is a lot of competition over the best quality suppliers. As a result, high quality suppliers are able to choose who they wish to work for (Dew Mobility Blog, n.d.). Threat of new entrants: High Low as anyone can try to make an app and there are plenty of programs that allow even those with
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3 limited tech knowledge to do so. This creates a high threat of new entrant, especially if the population sees it as a lucrative industry. (Gordon, 2009) Threat of substitutes: Low Low as there are very few options for automated budgeting. If a user wishes to remove the hassle of a budget they have little choice other than an automated app (Babauta, 2007) (Koploy, 2014) Rivalry among existing competitors: High There are currently many budgeting apps that exist within the industry, they all preform much of a similar task and compete for the same user base. As a result there is a lot of competition in the industry so rivalry among competitors is high. (Zoomer, 2014) Overall attractiveness of the industry: The industry is relatively attractive due to a lack of substitutes and the possibility of succeeding in an industry where you can control the buyer. However there is massive competition among existing competitors and always the threat of new ones, as well as high supplier power. 3.3 Customers and Thei r Needs The target consumer for BudgetBuddy is those of low/medium disposable income as they're the most likely to desire a budget, and these are the people in the highest risk of debt so need a budget most. (Wagmiller, 2003) As the target customer is those with a low disposable income, a key need some thing making them stick to the budget. Budgeting is only effective if people follow it, without following the budget the debt problem will only worsen, they need a product like BudgetBuddy that will keep them on track. (BB&T, n.d.) The target customers are also often under huge amounts of stress(Poverty and Social Exclusion, n.d.). Because of this these customers need an automated, fast, simple solution to their budgeting problem that requires little personal involvement.
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4 3.4 The Product and Service BudgetBuddy has specific categories for possible purchases selected by the user, food, power, and clothes for example. A connected bank account is used to allocate money into the categories on a weekly/monthly bases. BudgetBuddy secures this money in each category meaning it cannot be spent on other products, for example money in the food category can only be spent on food. BudgetBuddy makes sure they don't over spend and will stick to budget, meaning theyll always have money for essentials BudgetBuddy will also satisfy the need for a quick and simple solution to budgeting. As a bank account is connected to the app, purchases are tracked automatically so the user can view their budget in real time. The automation removes the hassle of traditional budgets and make its incredibly user-friendly. It means they know what they can afford without working it out themselves, satisfying the need for speed and simplicity. 3.5 Suppliers and Partners Potential suppliers for BudgetBuddy include an app developer, such as Smudge (Smudge, n.d.), and a Web-Server, such as Hostgator. The chosen app developer would create and design the app for BudgetBuddy so it was professional and user-friendly. The Web-Server would host a website tie-in for the app incase users want to view their budget on a PC Potential partners could include a bank, such as ANZ, and iTunes. Partnership with a bank such as ANZ would give credibility to the app. It would also create an easy link between transferring money in the categories and connecting with other accounts the user may want connected. In return the ANZ would receive free advertising and possibly new customers. iTunes would provide a place where everyone has the ability to download the app and would give the app exposer to a key market place. In return Apple would receive 30% of app sale revenue for promoting and dealing with sales admin (Buskirk, 2013).
3.6 Strategy: Cost Leadership BudgetBuddy would target its key consumers, those with lower/medium income, but also the rest of the population to try and help anyone who suffers from debt, resulting in a broad competitive strategy.
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5 As there is so much competition within the industry a low cost strategy will be the most effective to try and gain market share. A low cost strategy will aim to try and entice users to download BudgetBuddy compared to more expensive budgeting apps. The overall stratefy is therefore Cost Leadership 3.7 Value Chain Activity: Service after the Sale The most important value chain activity for this business is Service after the Sale BudgetBuddy is trying to rid world the of debt so its essential that people download the app, but most importantly continue to use the app so they can save money and help possible debt problems. Continued service after the sale is key to try and retain current users but also attract new ones who have heard of the great service. This also links to the cost leadership strategy. Focusing on amazing after sale service will be very attractive for a broad consumer strategy as service is something they will all look for, and the low cost of the app is further incentive. 3.8 Business Processes 3.8.1. USER MONI TERING PROCESS This business process makes sure the user is sticking to their budget and is aware their spending by tracking their purchases and alerting them if theyre in danger of over spending. The business would use their IT department would use the spending comparison system and spending forecast system to rely informative and useful information during the process to the user about their budget. 3.8.2. CUSTOMER FEEDBACK PROCESS This process makes sure that the users have a chance to offer feedback, a key part of service after the sale, to the business. The process makes it easy how to submit feedback, and then through IT submits the feedback to the appropriate department as well as the users information so they can reply when received.
Business Process 1
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Business Process 2
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8 3.9 Functionalities 3.9.1. USER MONI TORING PROCESS Records user spending Alerts the user if in danger of breaking their budget 3.9.2 CUSTOMER FEEDBACK PROCESS Collects feedback Provides support details 3.10 Systems
3.10. 1. SPENDING COMPARI SON SYSTEM This system compares the spending paterns of the user on a week-by-week or month-by-month bases to determine if the user is following their usual trends for spending. The system supports the alert function as it provides the app with the information if its nessesary to display an alert if overspending is determined. It supports the vision of BudgetBuddy by making sure each user stays to budget to help create a debt free world. 3.10. 2. SPENDING FORECAST SYSTEM This system uses user spending paterns that have been collected, incorporating the recording user spending function, to dertermin a possible spending total for a week/month if current spending trends continue. Its a useful tool for those in danger of breaking budget to see how much they need to cut back. This ensures they wont run into debt if the advise is followed and helps to create a debt free world. 3.10. 3. FEEDBACK SUBMI SSI ON SYSTEM Feedback that is submitted through the app will be sent to either the development team or customer service team, using the collection of feedback function. This system ensures that all feeback reaches the correct department so compalints can be delt with or possible emprovements considered. This will ensure continued use of the app as people will feel satified that the app will improve or theyre cared about as users, helping to make sure they stick to a program helping them become debt free.
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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)
Bavarian bergkase fromage queso 1. User monitoring purpose 1. Records user spending
2. Alerts if the user is in danger of breaking their budget Spending Comparison System
Spending Forecast System Transaction processing cheese system
Transaction processing cheese system 2. Customer feedback process 1. Collects user feedback
2. Provides support details Feedback Submission System
Customer relationship management system
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10 CONCLUSION BugetBuddy is an effective, innovative and simple way for people to manage their money. Debt is an increasing problem and BudgetBuddy will fix that through innovative and effective ideas. By using IT, BudgetBuddy will be able to create an easy to use app that will allow anyone to budget with ease, while making sure they dont overspend. IT is crucial in ensuring the money is correctly allocated and can be used for the purchase of items. As a result people will be able to manage their money and be able to avoid debt that unfortunately results for those who dont, creating a better financial situation for society.
REFERENCES
1. Babauta, L. (2007, May 30). 10 Ways to Simplify Your Budget. zenhabits RSS. Retrieved May 25, 2014, from http://zenhabits.net/10-ways-to- simplify-your-budget/
2. BB&T. (n.d.). The Importance of a Budget. The Importance of a Budget. Retrieved May 25, 2014, from http://www.bbt.com/bbtdotcom/financial- education/young-adults/preparing-your-first-budget.page
3. Buskirk, E. V. (2013, August 8). Apple Takes 30 Percent of In-App Subscriptions; Some Developers Are Fine With That. evolver.fm. Retrieved May 25, 2014, from http://evolver.fm/2013/08/08/apple-takes-30- percent-of-in-app-subscriptions-some-developers-are-fine-with-that/
4. Dew Mobility Blog. (n.d.). Dew Mobility Blog. Retrieved May 25, 2014, from http://www.dewmobility.com/blog.html
5. Gordon, J. (2009, August 11). Smashing Magazine. Smashing Magazine. Retrieved May 24, 2014, from http://www.smashingmagazine.com/2009/08/11/how-to-create-your- first-iphone-application/
6. Koploy, M. (2014, May 24). Compare Budgeting & Forecasting Software. Budgeting & Forecasting Software. Retrieved May 25, 2014, from http://www.softwareadvice.com/accounting/budgeting-forecasting- software-comparison/
7. Poverty and Social Exclusion. (n.d.). Parents living on a low income are under stress. Poverty and Social Exclusion. Retrieved May 25, 2014, from http://www.poverty.ac.uk/report-parenting-families-low-income- households/parents-living-low-income-are-under-stress 8. Smudge. (n.d.). SMUDGE. Smudge. Retrieved May 25, 2014, from
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11 http://www.smudgeapps.com
9. Wagmiller, R. (2003, October). Debt and Assets Among Low-Income Families. National Center for Children in Poverty. Retrieved May 25, 2014, http://www.nccp.org/publications/pdf/text_534.pdf
10. Zoomer. (2014, May 5). Best Apps For Your Budget - Everything Zoomer. Everything Zoomer. Retrieved May 25, 2014, from http://www.everythingzoomer.com/best-apps-for-your-budget/#.U4E- 414Rb1o
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