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INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS SECTION SUMMER 2014 Name NetID Group Number: Website Link: Tutorial Details Time Spent on Assignment: Luke Adkins 8084536 089 http://infosys110groupxxx.blogspot.co.nz/ Tutor: Day: Time: Yvonne Hong Tue/Fri 2pm 25 hours Word Count: 1640

CITYRUN!
INTRODUCTION

New Zealand is ranked as having one of the highest rates of obesity in the world, with close to 70% (InfoPlease 2008) of its population classified as overweight. Obesity has become a widespread epidemic throughout the developing world, costing millions of dollars for countries like New Zealand each year, and is not being addressed through innovative technology. That is why we have created CityRun!, an exercising app that uses a gaming format and incentives to motivate users to exercises and lead healthier lifestyles. Partnering with government agencies and health and fitness organizations, CityRun! provides its users with real incentives that can be redeemed in the real world. Through integrating exercising with a fun and rewarding mobile app, we encourage people everywhere to be healthy, helping to directly combat the increase of obesity in New Zealand.
3. BUSINESS SECTION 3.1 Vision

To encourage technology users everywhere to lead healthy, balanced lifestyles by providing them with the most interactive and motivating health and fitness mobile app.
3.2 Industry Analysis: Health and Fitness Mobile App Industry

(Porters Five Forces Model) Force: High/Low: Justification: With close to 15,000 health and fitness apps on the market and over a million apps total (Soorkia) buyers have an overwhelming amount of choices when purchasing an app on their smartphones With tens of thousands of mobile app developers available for hire all around the world, suppliers must be competitive, otherwise the buyer can simply go to the next developer. The number of health and fitness apps is projected to increase dramatically over the next few years, with more users turning to technology for health and fitness (Probasco 2013).
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Buyer power:

High

Supplier power:

Low

Threat of new entrants:

High

Threat of substitutes:

High

Rivalry among existing High competitors:

There are many substitutes to the health and fitness mobile app industry, such as exercising at a gym or on your own, hiring a personal trainer, or simply purchasing a different type of app. With so many apps to choose from, health and fitness apps must remain extremely competitive in order to survive by providing a quality experience for a low cost.

Overall attractiveness of the industry: The industry is extremely competitive and CityRun! will have to differentiate it self in order to be successful and sustainable. Entering the industry requires a well though out business plan and a distinctive competitive advantage of some kind.
3.3 Customers and Their Needs

CityRun!s target customers comprise of smartphone users, who lack sufficient motivation to exercise and enjoy utilizing mobile apps in their daily lives. An article tracking the demographics of the health and fitness mobile app industry stated that the majority of users were from the age of 18-29 (Holmes 2013), suggesting that our customers will mostly be young adults. Our target for CityRun! will be for ages 16-25, as the slightly younger generation will respond better to our gaming platform. Our customers need real motivation for leading healthier lifestyles, while not compromising the daily use of their smartphones. They need to be entertained and incentivized at the same time, all for an affordable cost.
3.4 The Product and Service

CityRun! is an interactive mobile exercise app that uses a gaming format to engage users to lead healthier lifestyles. The game tracks how far the user runs or bikes using pedometer and GPS technology, with challenges to overcome and a variety of modes to play in. Completing challenges and levels will earn points towards various rewards such as discounts for healthy food, gym membership/classes, and athletic gear. The app also provides the user with healthy tips and a map locating the nearest health food stores and fitness facilities. This app fulfills our customers needs by providing them with a fun and interactive way of exercising that actually rewards them with discounts worth real money in the real world.
3.5 Suppliers and Partners

Supplier: Mobile App Developer Our primary supplier will be a mobile app developer that also provides maintenance and updates periodically. One such company is Moa Creative, who can develop user-friendly apps with a high quality of design (moacreative.com). They
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would provide us with the creation of the actual app, as well as help us update and maintain the app as it progresses. Partners: Government Agencies and Health/Fitness Organizations The New Zealand Ministry of Health would be a great partner and potential sponsor for our app, as their mission and values align with our own and would help show credibility. We will also partner with local and national health and fitness organizations to provide us with the rewards in the game. We hope to partner with City Fitness, one of New Zealands premiere gym chains, to provide rewards to our users such as discounts off memberships, free day passes, and coupons for certain workout classes. We also hope to partner with athletic apparel companies such as ASICS, in order to provide discounts on athletic gear as another reward in the game. Other companies we would seek partnerships with include: PowerBar, Nike, Countdown, Health and Fitness magazines, and personal trainers.
3.6 Strategy: Focused High Cost

Competitive Scope: We will be targeting a narrow market in comparison to most apps on the mobile market. Our exercising app is designed for a younger generation who relies on technology for their daily lives and enjoys using it as a gaming platform. We are targeting a narrow market in order to focus our marketing initiatives and help us provide the best app experience for our desired users. Cost Strategy: Due to our incentives being worth real money when redeemed in the real world, we believe that our users will be willing to pay a higher cost for our app. We plan to offer CityRun! for $4.99. Although this is a relatively small price for a product, in comparison to other health and fitness apps that range from free to $0.99 (Louis 2013), it is a high cost for an app.

3.7 Value Chain Activity: Market and Sell the Product

With so many health and fitness apps for our customers to choose from, the most important value chain activity for our business will be marketing and selling the actual app itself. As we have a focused high cost strategy, we must convince our customers of the value in our app, through highlighting the fact that they will earn rewards worth far more than the cost of the app.
3.8 Business Processes
3.8.1. PURCHASING AND DOWNLOADING PROCESS - This process is how CityRun! obtains its

primary revenues. It starts with the customer searching through health/fitness apps in their designated app store (Apple vs Android). Once the customer finds CityRun! they tap on the download page to see more information. Then the customer continues to purchase the app
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and CityRun! is downloaded onto their smartphone. Once available, the user will launch the app be prompted to create a profile. If the user has a Facebook, they have the choice of logging in through their profile to expedite the process. If not, they simply continue to create their profile using their email and password. Once their profile is created and they set their goals, the user starts playing CityRun!

3.8.2. ONLINE MARKETING OUTREACH PROCESS - The customer first sees an ad on Facebook

for CityRun! and decides to click/tap on the ad. This takes the customer to our webpage outlining the game and how it can be downloaded. If the customer is on their smartphone, we provide a direct link to the app store download page. If they are on their computer, then we offer more information with the submission of their email or phone number. Once entered, we send an email or text to the customer with the direct link to the download page and instructions. Once the instr uctions are followed, the customer arrives at the download.

3.9 Functionalities
3.9.1. PURCHASING AND DOWNLOADING PROCESS

Record purchases and authorize downloads Launching app and creating user profiles

3.9.2. ONLINE MARKETING OUTREACH PROCESS

3.10 Systems

Direct customers to CityRun! webpage Provide customers with downloading instructions (via text/email)

3.10.1. PURCHASING AND DOWNLOAD AUTHORIZATION SYSTEM -

This system directly

supports the physical purchase of the app and records the transaction. Once the payment is confirmed, the app is authorized for downloading on the customers smartphone.
3.10.2. ONLINE MARKETING SYS TEM -

The Online Marketing System maps out exactly how we

direct customers from our online advertisements to the actual app store download page for CityRun!
3.10.3. CUSTOMER OUTREACH SYSTEM -

Once we make contact with a potential customer, it

is important to reach out and support the lead obtained from the online marketing system. This system sends an email/text to our leads providing detailed instructions on how to download and use the app.

3.11. Summary Table: Value Chain to Systems

Value Chain Activity

Processes 1. Purchasing and Downloading Process 2. Online Marketing Outreach Process

Functionalities 1. Record purchases and authorize downloads. 2. Launch app and create user profiles. 1. Direct customers to CityRun! Webpage. 2. Provide customers with downloading instructions (via text/email).

Market and Sell the Product

Specific Information System(s) - Purchasing and download authorization system

Broad Information System(s) - Transactional Processing System (TPS)

- Online Marketing System - Customer Outreach System

-TPS - Decisional Support System (DSS)

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CONCLUSION

CityRun! is unlike any other exercising app on the market. Its built to motivate users to lead healthy lifestyle in a unique and innovative way. Through embracing technology and an interactive gaming platform, CityRun! is the best smartphone tool for users looking to increase their exercising habits without compromising their daily technological routines. With incentives that can be redeemed in the real world and hold real monetary value, our app gives in-game incentives a whole new meaning. Through our collaboration with our suppliers and partners, we hope to build a community around CityRun!, dedicated to inspiring individuals to be healthy and fit, and in turn directly fighting the increase of obesity in the developed world.
REFERENCES

1. "Fattest Countries in the World." Infoplease. Infoplease, Feb. 2008. <http://www.infoplease.com/world/statistics/obesity.html>. 2. Sorkia, Meelee. "Health and Fitness Apps for Mobile Devices." Bupa. N.p., n.d. Web. <http://www.bupa.com.au/health-and-wellness/shine/spirit/health-and-fitnessapps-for-mobile-devices>. 3. Probasco, Jim. 2013. "Mobile Health Apps Could Be the "Next Big Thing"" Benzinga. N.p., 08 Nov. 2013. Web. <http://www.benzinga.com/news/13/11/4065328/mobilehealth-apps-could-be-the-next-big-thing>. 4. Holmes, Lisa. 2013. "Analyst Pulse: The Growing Use of Mobile Health and Fitness Apps." Analyst Insight from Euromonitor International. N.p., 29 Aug. 2013. Web. <http://blog.euromonitor.com/2013/08/analyst-pulse-the-growing-use-of-mobilehealth-and-fitness-apps.html>. 5. Our Services." Moa Creative. n.d. Web. <http://www.moacreative.com/work/>. 6. Louis, Tristan. 2013. "How Much Do Average Apps Make?" Forbes. Forbes Magazine, 10 Aug. 2013. Web. <http://www.forbes.com/sites/tristanlouis/2013/08/10/howmuch-do-average-apps-make/>. 7. "A Spotlight on World Obesity Rates." 2013. Central Intelligence Agency. Central Intelligence Agency, 30 Apr. 2013. <https://www.cia.gov/newsinformation/featured-story-archive/2012-featured-story-archive/obesity-accordingto-the-world-factbook.html>.

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