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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Sanden Dylan
NetID 6061728
Group Number: XXX
Website Link: http://infosys110groupxxx.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:

Time Spent on
Assignment:
A lot Word Count: 1792

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PARKME MOBILE APPLICATION
INTRODUCTION
The business idea: ParkMe, is a free mobile application that provides information to users of
parking space vacancy at any location and time. ParkMe addresses the problem of time
wasted and frustration of car drivers trying to find a car park due to parking undersupply.
ParkMes goals are to maximize the use of the existing parking spaces. ParkMe will help
driver find parking more efficiently and therefore minimize traffic congestion.
3. BUSINESS SECTION
3.1 Vision
ParkMe will provide people from all over the world the information to enable them to know
where to park in no time. The free mobile application will deliver accurate information that
anyone can analyse and comprehend.
3.2 Industry Analysis: Parking search mobile application industry
Industry: Parking search mobile application industry.
Force: High/Low: Justification:
Buyer power:

High The buyer has a very large choice of application at
a very low price. The buyers switching cost is low
as many of the apps are free and can be
downloaded individually. There is an estimated
70 billion apps in the world and 25% of them are
only used once (Pure Oxygen). This makes the
buyers power very high.
Supplier power: High The mobile application industry is growing
quickly. The supply of mobile application

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developers and programmers is not keeping up
with its demand (Stackpole). As the demand is
high for each supplier (app developers), the
suppliers has high power over choosing who to
work for, what to work on and at what price.
Threat of new entrants: High Anyone with computer engineering knowledge
can create an app with a very small amount of
capital and in a short amount of time. The lack of
barriers of entry makes the threat of new
entrants very high.
Threat of substitutes: Low The services provided by ParkMe are very
specific. There are other application out there
which targets the same customers as us but dont
provide the same service. Therefore the threat of
substitutes is low.
Rivalry among existing
competitors:
High The competition is fierce; a lot of the businesses
competing are of same size. The business creators
are often passionate about their idea, which
often results on excellent applications (Sutter).
The rewards are very high if successful but
pleasing the customer and keeping its attention
on your app is very hard. This is fast changing
industry that requires technology and innovation.
Therefore the rivalry amongst existing
competitors is high.
Overall attractiveness of the industry: The general mobile application is an industry is one
on the rise. The global revenue from app stores is expected to rise 62% to $25 billion in

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2014. (Stackpole) In its early life they often struggle to create revenue, but with time and
popularity they can become very profitable. For example Shazam (mobile app) started out
struggling to create deals with operators. Now it shows revenue of 21.8 million revenue
through five different revenue streams (Sweney, 2013). It is a very attractive industry but
the reality is that only the best can survive as only 0.01% of all mobile application is
profitable (Stamford). If one wants to be successful one needs to have a very high share of
the industry. At this time there is no app as successful as Shazam in the parking search
mobile app industry. Therefore there is room for a well-designed, efficient and simple
mobile app for parking users. And I believe that there lies an attractive opportunity.
3.3 Customers and Thei r Needs
The targeted customers are car drivers who struggle to find parking inefficiently. There was
an estimated 12,250 short term car parks in Auckland 2007 and that they were short of at
least 2500 parks (Auckland Council, 2012). Time is money, too much money is spent on fuel
and time wasted wondering around trying to find car parks at peak times. Our customers
need a tool that is easy to use. A tool that will provide them with knowledge of any parking
availability in Auckland at any given time.
3.4 The Product and Service
Our product is a mobile application that informs the user of short-term public parking
availability. The application will gather the data from the various car park complexes of car
park availability. Anyone who owns a smartphone or smart device that can download
apps from the major app platforms will be able to download the ParkMe app for free. They
will be able to see parking availability, prices and the distance from their desired destination
through Google maps. ParkMe will also provide alternative solutions if necessary such as
off-street parking areas combined close to bus stations that can bring them to their desired
destination. Park will give the tools to its user to assess its opportunity cost of where to
park, what are the chances to secure a park, how much it will cost and an alternative if he is
not satisfied.
3.5 Suppliers and Partners

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Suppliers
In order for ParkMe to exist and be efficient we will first have to hire mobile application
programmers and developers, such as the New Zealand firm Netactive. Netactive specializes
in design, concept and execution of a mobile application. Then we will have to hire search
engine optimization (SEO) and pay-per-click advertising specialists, such as another New
Zealand firm called Pure SEO.
Partners
We will process the data that will be given to our customers but we will not collect it. The
data will come from parking operators such as Wilson Parking. They will give us their data of
the prices and availability of their parks, which is an essential component of our product.
They will in return benefit from our publicity. The increase of awareness of potential
customers will enable Wilson Parking to minimise car park vacancies. Another parking
operator is Auckland Transport. AT Public also operates the public transportation around
Auckland. They will benefit from alternative public transport options when limited parking is
available.
3.6 Strategy: Cost Leadership
The mobile application is a new industry, which often does not profit directly from the
customers, more than 80% of the apps are free (Alto, 2013). The user measures its
opportunity cost: how much time is required in order to benefit from the application.
ParkMe will have a cost leadership strategy because broad market competitive scope: the
app will target everyone who has a smartphone and uses parking which is broad as they are
numerous. Secondly its cost strategy will focus on low cost, by making the application
efficiency with a high benefit/time ratio.
The overall strategy is therefore Cost leadership
3.7 Value Chain Activity: technology development
Technology development is crucial for a mobile application because its industry
environment is technologically driven. The standard of technology development for mobile

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apps is very high. This is because that is what is most valuable to the customer. ParkMes
uses technology to manage, process and deliver the data of parking availability, which is the
customers product. To be successful ParkMe will have to excel in constantly developing
their process automation and design. Therefore the most important value chain activity for
ParkMe is technology development.
3.8 Business Processes
3.8.1. INNOVATI ON AND DEVELOPMENT PROCESS- In order to compete with competitors
effectively ParkMe will have to innovate and develop its application on a constant basis. The
company will do so through by receiving feedback and reviews threw our customer service
department and then treating their problem with our research and development team.



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3.8.2. EFFI CIENCIES AND OPTIMAZATION PROCESS - In order to be competitive ParkMe will
have to be able to deliver data faster and more accurate than its competitors. To do so the
data analysis department will first have to identify an inefficiency through KPI data. If
relevant and significant the development team will be assigned a project to assess the
inefficient.


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3.9 Functionalities
3.9.1. INNOVATI ON AND DEVELOPMENT PROCESS
Develop an innovative, well designed and competitive app.
Develop an app that meets all our customer needs and wants.
3.9.2. EFFICIENCIES AND OPTIMIZATI ON PROCESS
Optimize the accuracy of information we provide our customers through
ParkME.
o Minimize time delay of information
o Optimize precision of information
3.10 Systems

3.10. 1. DATA MINING SYSTEM - Data measured based on the KPIs will have to be collected
from the various parking locations in order to know where the inefficiencies lie in the
application.
3.10. 2. DATA MANAGEMENT SYSTEM - The data will have to be processed and managed in
order to make it easier to evaluate it and evaluate the data more clearly and assess its
relevance and validity.
3.10. 3. CUSTOMER SERVI CE SYSTEM The ParkMe are our customers and we need to be sure
that we offer them a product that is better, faster, more accurate and easier to use than the
apps of our competitors. To do so we have to put a system in place where they feel
confortable to share any problem they encounter while using ParkMe and record it.

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3.11. Summary Tabl e: Value Chain to Systems

Value Chain
Activity
Processes Functionalities Specific Information
System(s)
Broad Information
System(s)

Technology
Development
1. Innovation and
development
process
1. Customer service system

2. Data management system
Customer service system

Data management system
Operational customer
relationship management
system

Analytical CRM
2. Efficiencies
and
optimization
process
1. Data mining system

2. Data management system
Data mining system


Data management system
Analytical CRM

Analytical CRM

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CONCLUSION
ParkMe will provide parking availability awareness through an easy to use and well-
designed application. The app will provide the customer with exactly how much and what
information he needs by processing large amounts of data provided by parking facilities
through information systems. To be competitive, ParkMe will use information technology to
constantly improve and develop their app. ParkMe is an innovative app that will show
success and be used all over the world.

REFERENCES
Alto, P. (2013, 05 23). Top iOS and Android apps largely absent on Windows Phone and BlackBerry 10. From
Canalys: http://www.canalys.com/newsroom/top-ios-and-android-apps-largely-absent-windows-phone-and-
blackberry-10
Auckland Council. (2012, 01 25). Number of Parking and Loading Spaces Required for the City Centre. From
https://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/unitaryplan/Documents/Sectio
n32report/Appendices/Appendix%203.9.4.pdf
Netactive. (n.d.). What we can do for you. From http://www.netactive.co.nz/what-we-do
Pure Oxygen. (n.d.). From http://www.pureoxygenmobile.com/how-many-apps-in-each-app-
store/http://www.pureoxygenmobile.com/how-many-apps-in-each-app-store/
Pureeseo. (n.d.). Online digital marketing. From http://www.pureseo.co.nz/online-digital-marketing
Stackpole, B. (n.d.). Your next job: Mobile app developer? From
http://www.computerworld.com/s/article/9217885/Your_next_job_Mobile_app_developer
Stamford, C. (n.d.). Gartner Says Less Than 0.01 Percent of Consumer Mobile Apps Will Be Considered a
Financial Success by Their Developers Through 2018. From Gartner:
http://www.gartner.com/newsroom/id/2648515
Sutter, F. (n.d.). Analysis of the app market based on Michael Porters five competitive forces. From Triple
Happiness: http://3xhappiness.com/analysis-of-the-app-market-based-on-michael-porters-five-competitive-
forces/
Sweney, M. (2013, april 30). Shazam chief aims to drive revenues into 'hundreds of millions' ahead of IPO. From
The guardian: http://www.theguardian.com/media/2013/apr/30/shazam-ceo-revenue-ipo