DELIVERABLE 2: BUSINESS SECTION 2014 Name Shaye Vagels Shaye Vagels Shaye Vagels NetID sgav305 sgav305 sgav305 Group Number: 370 370 370 Website Link: http://infosys110group370.blogspot.co.nz/ http://infosys110group370.blogspot.co.nz/ http://infosys110group370.blogspot.co.nz/ Tutorial Details Tutor: Day: Time: Tutorial Details Yvonne Wednesday 10am Time Spent on Assignment: 22 hours Word Count: 2 INFORMATION SYSTEMS APPLICATIONS CO. INTRODUCTION Applications Co. is a company that helps both already existing and new companies create and/ or expand on applications for websites, smart phones and tablets. It gives companies a more advanced edge when looking to expand their horizons, by handing a tool to their customers that makes their company more accessible, therefore creating happier customers leading to a higher profit for said company. 3. BUSINESS SECTION 3.1 Vi si on Applications Co. aims to add innovation within technology by creating advanced applications to ensure that the worlds day to day activities are more convenient. 3.2 Industry Anal ysi s: Application Creation Industry Industry: Application Creation Industry Force: H i g h / Low: Justication: Buyer power: High Buyer power is high because there are many options available to buyers as where to go to have an application created for them as well as the option to do it themselves. 2 3 Supplier power: Low Supplier power is low because the companies have choices as to where to get supplies from. Supplies within the Application Creation Industry are people who can do di!erent components of the processes, such as a computer graphic designer or a research analyst. Threat of new entrants: High Because there are few barriers to enter this industry allowing people to easily set up this cr eat es pl ent y of oppor t uni t y f or new entrant (Adam Vaccaro, 2014). Threat of substitutes: High Threat of Substitutes is high because customers have the option to make the application themselves, if they have the relevant knowledge or they can use a low cost and/or free application development company. (This would di!er from Applications Co. because they wouldnt have the analysis aspect to suggest what the companies needs to increase costomer satisfaction) Rivalry among existing competitors: High Rivalry among existing competitors is high because every application creating company wants to put out the next best innovative app. Overall attractiveness of the industry: Anytime is a good time for a startup to jump in (Adam Vaccaro, 2104) meaning that the Application Creation Industry is an attractive industry to enter because it has very few entry barriers and low start-up costs. All that is required of someone to start up a company within this industry would be knowledge about applications and how to create them. 3.3 Customers and Thei r Needs Applications Co.s target customers are already established companies looking for a competitive edge within their business. Companies that are ready to take the next 3 4 step in advancing their services to their customers are the target customers for Applications Co. The target customers needs to strengthen their businesses by taking the next step and using technology to help further their services/ create awareness of their business and having an app for your business or promotion or whatever it may be can be a game changing marketing tool to drive traffic and revenue. (Carter Thomas, n.d.) By creating an application for their business, business owners could help decrease customer frustration and increase customer satisfaction and awareness of said business. 3.4 The Product and Servi ce Applications Co. offers companies the chance to expand their business. They do this by first consulting on what the businesses customers want and then looking to build a website or application for smart phones or tablets based on what will help the business get a competitive edge. The applications that Applications Co produces help expand the functionality of the business, making the businesses customers have an easier time in relation to the business. For example an application could help with: locating a business, making a booking for a haircut , seeing a menu before going to restaurant, etc. 3.5 Suppl i ers and Partners Suppliers to Applications Co. are a research analysing company and a computer graphics company. Applications Co. brings in outside companies to do the more technical aspects by experienced professionals to ensure that the highest quality of work is done on each project. The research analysing company handles the beginning stages of Applications Co. business processes by doing the research to see what the companies that hire Applications Co. need to increase their customer satisfaction as well as pull more customers in. The information they acquire is then translated into how to improve or what to put into the soon to be application. The computer graphics company helps with the physical designing of the application; the more user friendly and appealing the application look, the more successful the product Applications Co. produces is. 4 5 Partners of Applications Co. are Auckland City Council as well as the Apple App Store. Auckland City Council is a partner because they formed an alliance so that when the city needs help with solving some of its issues, for example the customer satisfaction and efficiency of the public transit system, Applications Co. is there to help analyze what the issue is and how to try fix it. Another partner of Applications Co. is the Apple App Store. The Apple App Store is considered a partner because it has teamed up with Applications Co. they allow the apps created by Applications Co. on their online store. 3.6 Strategy: Focused High Cost Applications Co. uses a Focused High Cost method. Its competitive scope is focused because Applications Co.s product is aimed at business owners that already have their companies up and running. The cost method that Applications Co. has adopted is high cost because the work that they do and the product and services they provide are innovative and require high amounts of money to be able to provide the high quality products that their customers demand. The overall strategy is therefore Focused High Cost. 3.7 Val ue Chai n Acti vi ty: Technology Development and Research Development The most important value chain activity for this business is Technology Development and Research Development. Applications Co.s most important value chain activity is Technology Development and Research Development because in order for the company to remain relevant in the eyes of future customers Applications Co. needs to remain creating the most cutting edge technology. The research that Applications Co. inquires helps to suggest innovative ideas to customers for the beginning steps of creating the application. The developing of research and technology is a costly expense that 5 6 leads to having higher expenses, therefore the established companies that hire on Applications Co. can expect to pay more for the advanced services offered. 3.8 Busi ness Processes 3.8.1. RESEARCH ANALYSIS PROCESS- The research analysis process is a process that analyses the research from both the companies past data and society. It connects what the company has to offer with how society views its offerings and then tries to conclude the best way to enhance and simplify aspects for the company through an application. 6 7 3.8.2. APPLICATION DEVELOPMENT PROCESS - The application developement process is a process of developing the application. It takes into account the brainstorming of ideas off of the research of the analysis company. The design comes in typically once the programming and functionality have been defined. (Carter Thomas, n.d.) The computer graphics company then completes it. 7 8 3.9 Functi onal i ti es 3.9.1. RESEARCH ANALYSIS PROCESS ! Discovers data ! Relates data to problem at hand 3.9.2. APPLICATION DEVELOPMENT PROCESS ! Designs application format ! Turns data into a useable output 3.10 Systems 3.10.1. DATA ANALYSIS SYSTEM- The data analysis system is the system that deals with the incoming data from the customer company as well as society and links them together by aiming them towards the issue at hand for the company. It organises the data in a way that helps with innovative thinking to create a clear solution. 3.10.2. DESIGN MANAGEMENT SYSTEM- The design management system is the system that is charge of the creating of the physical application. It funnels the information given from the analysts into a clear concise format to ensure that an advanced application is being created. 3.10.3. COMMUNICATION MANAGEMENT SYSTEM- The communication management system is the system that links together Applications Co. with its partners (computer graphics company and research anaylsis company). It ensures that there is an open flow between the companies to verify that advanced technology is being created. 8 9 3.11. Summary Tabl e: Val ue Chai n to Systems Value Chain Activity Processes Functionalities Specic Information System(s) Broad Information System(s) Market and Sell Product or Service 1. Research Analysis Process 1. Discovers data 2. Relates data to problem at hand Data analysis sytem Communication management system Decision Support Systems Supply Chain Management System Market and Sell Product or Service 1. Application Development Process 1. Design application format 2. Turns data into a useable output Design management system Communication management system Collaboration System Supply Chain Management System 9 10 CONCLUSION Applications Co. aims to create innovation through developing applications for companys that want to give themselves an advanced edge within their market. Using technology Applications Co. has data analysed to give companies the best possible idea for applications to ensure an increase in business due to higher levels of customer satisfaction and make using the companies product or service more accessible. Information system play a key role in Application Co.s business success. REFERENCES 1. Adam Vaccaro. (25 Mar, 2014). Best Industries: How to Capitalise on the Business App Boom. Retrieved from: http://www.inc.com/adam-vaccaro/best- industries-mobile-apps.html 2. Jessica E. Lesin & Spencer E. Ante. (4 Mar, 2104). Apps Rocket Towards $25 Million in Sales. Retrieved from: http://online.wsj.com/news/articles/ SB10001424127887323293704578334401534217878 3. Carter Thomas. (n.d.). How Much Does it Cost to Develope An App?. Retrieved from: http://www.bluecloudsolutions.com/blog/cost-develop-app/ 4. Sarabjeet Singh Dua. (n.d.). Business Plan- Mobile Application Development. Retrieved from: http://www.slideshare.net/rythamatics/business-pla 5. Kerry Butters. (Feb 10, 2014). The Best Way to Plan a Budget for a Mobile App Business. Retrieved from: https://getappcase.com/blog/beginners-tips/ the-best-way-to-plan-budget-for-mobile-app-business 10