You are on page 1of 12

1

INFOSYS.110 BUSINESS SYSTEMS:


DELIVERABLE 2: BUSINESS SECTION
2014

Name Louisa Blair
NetID lbla545
Group Number: 007
Website Link: http://infosys1102014s1group007.blogspot.co.nz
Tutorial Details
Tutor: Day: Time:
Kit-Wah Huang Monday 9am
Time Spent on
Assignment:
9h5m Word Count: 1637

2


2
INFORMATION SYSTEMS IN BUSINESS
INTRODUCTION
Technology is becoming increasingly indispensable in society and consequently its value to
us is growing. This inevitably results in an increase in its appeal to thieves, which led to the
problem; theft of electronic devices, particularly mobile phones, tablets and laptops. The
solution centres around making these devices less valuable to thieves, by ensuring they
wont operate unless within range of the rightful user. This is achieved through use of an
RFID chip in conjunction with an app installed on the device.
3. BUSINESS SECTION
3.1 Vision
To improve security of personal technology by creating a simple, easy-to-use mobile
application to aid prevention of electronic device theft.
3.2 Industry Analysis: The Mobile Apps Industry
Industry: The Mobile Apps Industry. The global mobile applications industry relating to all
platforms and app categories.
Force: High/Low: Justification:
Buyer power: High Consumers have a huge amount of choice in
apps. On Apples App Store alone, there over 1
million different apps available and more than 60
billion total apps had been downloaded by the
end of 2013 (Ingram, 2013). This does not include
the 800000 choices available on Googles
Android platform (Pure Oxygen Mobile, 2013).
Although consumers may essentially be locked
in by their chosen platform, there are so many

3


3
choices that buyer power remains high.
Supplier power: Low Industry suppliers are providers of operating
systems. As iOS and Android are the largest
providers in the industry (IDC, 2013) and
developers can choose to launch on these or
other platforms (Mackenzie, 2012), supplier
power is low.
Threat of new entrants: High App development does not require much capital
and expertise on how to both create and launch
products is easily accessible on the internet. This
is evident in the thousands of app devlopers
already in the industry.
Threat of substitutes: High Apps are often created to mimic functions of
existing products or services, such as newpapers,
magazines or websites. Gaming apps can similarly
be replaced by a console or board games,
resulting in a high threat of substitutes (Suter,
n.d.).
Rivalry among existing
competitors:
High Given the huge number of apps available, it is
difficult for app developers to get their products
noticed, hence competition both for revenue and
consumer attention is fierce (Suter, n.d.).
Overall attractiveness of the industry: The overall attractiveness of the mobile apps
industry is low. Although large profits can be made, this is limited to comparatively few
firms or developers, and is impacted by high buyer power, threats of new entrants and
substitutes and rivalry among existing competitors.

4


4
3.3 Customers and Thei r Needs
The target group of customers would be anyone who owns an electronic device and values
it both for the value in data stored on it and for its inherent monetary value. As this group is
very broad, this report focuses on employees assigned devices by their employers. These
devices frequently contain sensitive information, potentially damaging not only the holder
of the device personally, but also their employer. According to an Intel-sponsored study,
46% of laptops stolen from employees contained sensitive or confidential data (Ponemon
Institute LLC, 2010).
Their short-term needs would be to ensure any data on a stolen device could not be
accessed. A similar study found eighty percent of the $49246 cost per stolen laptop results
from data breaches (Ponemon, 2009). In the longer term, customers would need a more
preventative anti-theft measure, as having a device stolen results in productivity loss, due to
the time taken to replace both the device and the data it contained (Ponemon Institute LLC,
2010). This is especially applicable to employees required to travel or work off-site, as
combined, these areas accounted for 76% of all stolen laptops within the study (Ponemon
Institute LLC, 2010)
3.4 The Product and Service
The product offered would satisfy both the short and long-term needs of the target group of
customers. The app and RFID chip work together to monitor whether the rightful user of the
device is within a preset range. Once the device goes out of range i.e. is too far away from
the user, it immediately shuts down, thereby preventing any unauthorised access to
sensitive data.
Due to the lack of access and usability, resale value of stolen devices would diminish in the
longer term, reducing incentive for thieves to steal them. Use of this product therefore acts
as both a preventative measure in the long-run and a security measure in the short-term.
3.5 Suppliers and Partners

5


5
Suppliers for this product include a manufacturer of Radio Frequency Identification (RFID)
chips, that fit the necessary specifications. The RFID chips would need to be small enough to
be attached or embedded in jewellery, a watch or keyring and be able to monitor range up
to a specified distance from the device. Another supplier would be the supplier of a
platform to distribute the app from, such as Apples App Store.
Potential partners are a phone manufacturer and a jewellery designer. A phone
manufacturer such as Samsung might want to incorporate the app function into their
products, in order to use the additional security feature as a competitive advantage. A
jewellery deisgner would be a beneficial partner to the business by designing a range of
items that the RFID tag could slot in to.
3.6 Strategy: Focused Low Cost
As apps are not typically expensive to purchase the average price on the Apple App Store
is $0.19 (Ogg, 2013) and RFID chips are similarly priced, this product will aim to be in a low
price range in terms of its cost strategy.
The competitive scope will focus on customers with smartphones, tablets or laptops
containing sensitive or valuable data. Nationally, this is a narrow market.
The overall strategy is therefore Focused Low Cost.
3.7 Value Chain Activity: Technology Development
The most important value chain activity for this business is technology development.
The businesss vision is to create a simple, easy-to-use app to aid theft prevention. To
achieve this, the most important aspect of the value chain is the design and development of
the product itself, how easy it is for target customers to use. If operating the app is too
complex, not only will the vision not be achieved, but customers will be deterred from
purchasing the product.
The focused low cost strategy of the business also indicates that designing the product is the
most important value chain activity. The target group of customers will require a high-

6


6
quality, reliable product, which is achieved primarily during development. Additionally, as it
is a low cost strategy, costs must be monitored during this support value chain activity.
3.8 Business Processes
3.8.1. PRODUCT DEVELOPMENT PROCESS The product development process aims to create
a new product. It involves investment of both time and money on the firms behalf, but can
result in competitive advantages. The process includes concept development and testing,
market testing and commercialisation. This is a key business process as it is imperative the
product is fully capable of satisfying customer needs upon its launch. The mobile app will go
through this process before it is launched.


7


7
PRODUCT DEVELOPMENT PROCESS MODEL:
START of Product
Development
Process
Assemble Concept
Development Team
Generate Potential
Ideas for Products
Screen Potential
Ideas
Select Most Feasible
Idea
Create Product
Specifications
Develop Product
Prototype
Design Test
Marketing Process
Test Market Product
Is Product
Viable?
Begin
Commercialisation
Process
Yes
END od Product
Development
Process
No
Financial Modelling System
Design Department
Design Department


8


8
3.8.2. MARKET RESEARCH PROCESS The market research process aims to produce meaningful
information about the intended market of a firms products. This involves gathering information about
customer segments, identifying potential target markets and recognising specific needs of the target market.
This is a key business process as it is vital to know which segment of the market is most likely to be your
customers, as you are then better equipped to cater to their specific needs.
MARKET RESEARCH PROCESS MODEL:


START of Market
Research Process
Assemble Market
Research Team
Identify Problem or
Opportunity within
Market
Conceptualise
Research Design
Confirm Research
Design
Determine Research
Sample
Determine Method
of Data Collection
Gather Data
Analyse Data
Collected
Interpret Results
END of Market
Research Process
Data Analysis System
Marketing Department
Marketing Department

9


9
3.9 Functionalities
3.9.1. PRODUCT DEVELOPMENT PROCESS
Analyse and display concept testing results
Calculate potential revenues and cost figures for concepts
3.9.2. MARKET RESEARCH PROCESS
Categorising data
Analyse patterns in data
3.10 Systems

3.10. 1. DATA ANALYSI S SYSTEM - This system supports both processes by incorporating the
functionalities categorising data, analysing data patterns and analysing concept testing
results. Automating these activities results in fewer mistakes and therefore faster analysis
and decisions. This contributes to the businesss vision by assisting in creating a simple and
easy-to-use mobile application.
3.10. 2. CONCEPT SCREENI NG SYSTEM - This system incorporates the analysis and display of
concept testing results, as well as the pattern analysis in test result data. This supports both
the Product Development Process and the vision by improving decision-making capabilities
of the product development team, enabling them to create a more effective product.
3.10. 3. FINANCI AL MODELLING SYSTEM - This system incorporates analysis of data patterns
and calculation of potential revenues and cost figures for concepts. It supports the product
development process by predicting costs and revenues associated with each concept,
enabling more effective decision-making. This also contributes to the vision, by assisting in
keeping the product affordable, aiding the prevention of personal technology theft.

10


10
3.11. Summary Table: Value Chain to Systems

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

Technology
Development
1. Product
Development
Process
1. Analyse and display concept testing results.

2. Calculate potential revenues and cost figures
for concepts.
Data Analysis System

Financial Modelling System
Decision Support System

Decision Support System
2. Market
Research
Process
1. Categorise data.

2. Analyse patterns in data.
Data Analysis System

Data Analysis System
Decision Support System

Decision Support System

11

11
CONCLUSION
The businesss aim is to create a mobile app to aid prevention of personal technology theft.
This reflects the growing dependency and value society places on these devices and on
technology generally. As a technology-based business, it relies heavily on information
systems and IT, especially valuable tools such as data analysis for market research, financial
modelling systems and devices themselves for the app to be purchased. As a firm that based
its entire business on the value of technology, it is reasonable to assume that neither its
value nor that of information systems will be decreasing in the forseeable future.
REFERENCES

1. International Data Corporation. (2013, February 14). Android and iOS combine for
91.1% of the worldwide smartphone OS market in 4Q12 and 87.6% for the year.
[Press Release]. Retrieved from
http://www.idc.com/getdoc.jsp?containerId=prUS23946013

2. Ingram, N. (2013, October 22). Apple announces 1 million apps in the App Store,
more than 1 billion songs played on iTunes radio. Retrieved from
http://www.theverge.com/2013/10/22/4866302/apple-announces-1-million-apps-
in-the-app-store

3. Mackenzie, T. (2012, May 7). App store fees, percentages and payouts: what
developers need to know. TechRepublic. Retrieved [May 10, 2014] from
http://www.techrepublic.com/blog/software-engineer/app-store-fees-percentages-
and-payouts-what-developers-need-to-know/1205/?tag=nl.e550

4. Ogg, E. (2013, July 18). The average price of an iPhone app is 19 cents and itll
probably keep shrinking. Gigaom. Retrieved [May 13, 2014] from
https://gigaom.com/2013/07/18/the-average-iphone-app-price-is-now-0-19-and-itll-
probably-keep-shrinking/
5. Ponemon Institute LLC. (2010). Enterprise security: The billion dollar lost laptop
problem. Traverse City, U.S.A.: Author.
6. Ponemon, L. (2009). The cost of a lost laptop. Traverse City, U.S.A.: Ponemon
Institute LLC.
7. Pure Oxygen Mobile. (2013, March 5). How many apps are in each app store?.
Retrieved [May 10, 2014] from http://www.pureoxygenmobile.com/how-many-
apps-in-each-app-store/

12

12
8. Suter, F. (n.d.). Analysis of the app market based on Michael Porters five
competitive forces. Triple Happiness Consulting Ltd. Retrieved [May 10, 2014] from
http://3xhappiness.com/analysis-of-the-app-market-based-on-michael-porters-five-
competitive-forces/