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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION

2014

Name Luo XiaoNetID xluo865Group Number: 262Website Link: http://infosys1102014s1group262.blogspot.co.nz/

Tutorial DetailsTutor: Day: Time:Kit-Wah Wednesday 1pm

Time Spent on Assignment: 16 hours Word Count: 1632

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INDIVIDUAL REPORT - DELIBERABLE 2INTRODUCTION

More and more people today tend to drive to work all over the world as the growth of economics and cars become widely affordable.

the employed population listing this as their main means of travel to work on census day 2006” (Statistics NZ, 2006).

and air pollution would be caused by it. Therefore, we need immediate car parks information to avoid wasting time and improve efficiency.

3. BUSINESS SECTION

3.1 Vision

Being the most reliable car park guide by providing the most quickly and accurately

immediate car park information.

3.2 Industry Analysis

Industry: Smartphone navigation application industry

Force: High/Low: Justification:

Buyer power: High There are many choices of navigation applications

in smartphone stores, and most of them are free.

Supplier power: High The most accurate parking lots’ information must

be provided by the parking lots’ computer, so

each parking lot has control over its data. We

have to negotiate with them in order to get

access to their systems.

Threat of new entrants: High The barrier of entry for the transportation mobile

application industry is low, because it requires a

low set up cost for similar application. Sara

Angeles (2012) estimated that a simple app only

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costs about $1500 to $5000 and an app that

actually provides some value to customers costs

about $30000 to $150000.

Threat of substitutes: Low People have plenty of choices to search parking

lots such as using paper maps and in-car

navigation systems, but none of these substitutes

are as convenient as mobile navigation nowadays.

For example, Naughton, K (2013) stated that most

in-car navigation systems are not connected to

the Wed, and it is expensive to update the maps.

Rivalry among existing

competitors:

High There are many competitiors in the mobile navigation application industry, and some of them are already widely accepted by people such as Google maps and Iphone navigation apps.

Overall attractiveness of the industry: According to the 5 forces results, it seems that the

overall attractiveness is low as 4 of them indicate high threat and it’s hard to imagine how to

make profit. However, these kinds of application only need a low set up cost and it can

actually earn revenues because of large user-base.

3.3 Customers and Their Needs

According to the functions of our product, our potential customers can be divided into two

types. The first type of potential customer is all the New Zealand citizens who drive cars,

especially, the people who work in the CBD and prefer to drive to their workplaces every

day. Wasting too much time on finding car parks could lead to managers' dissatisfaction or

deducting of wages.

The second type of potential customers is commercial merchants like restaurants, hotels,

shopping malls, supermarkets and so on who would like to post their advertisements on our

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searching interfaces. As our products are widely used by a large number of customers,

commercial ads could be effectively spread.

3.4 The Product and Service

Immediate car park information can be easily accessed by download our app from

smartphone store. When users locate their destinations in, this software will link to every

nearby car parks' computer systems which can get the information of available spaces at

any time, and it will also link to its internet database which can tell how many people are

tracking the same car park as you and count the time for you and your competitors to get to

that car park. Therefore, users need not to worry about losing space because of the other

competitors (ie. people who arrive at the car park before you), they can choose the second

best alternative car park by comparing with their competitors.

3.5 Suppliers and Partners

As our product is heavily based on the data and information provided by parking lots’

systems, our main information suppliers would be the parking lots.

Besides, we are preferred to use the existed GPS tools and technologies as our basic locating

function, so the existed apps technologies such as Google Maps could be one of our

suppliers.

The advertising agency/company can be considered as one of our important partners. If we

outsource our advertising information database from advertising agency, they can have one

more platform to show the ads and our product’s utility can be improved as well; “Among

the most widely used navigation apps are ones that allow you to find products and services

in your vicinity” (Navigation iPhone Apps Review, 2014).

The other partners could be the smartphone application selling platforms like App Store and

Android Store, as our product needs to be sold in well-known App stores and they can

attract more users to enter their stores.

3.6 Strategy

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We are going to focus a broad market and based on the results of Potter 5 forces, we had

better to choose cost leadership as our strategy as buyer power is too high. There are many

navigation apps in the industry, we must set a low price to attract as many customers as

possible. Therefore, the overall strategy is therefore Cost Leadership.

3.7 Value Chain Activity

Technology development (and R&D) is our essential value chain activity as our vision is to

provide the most quickly and accurately information. On one hand, We need to frequently

receive and update immediate data and deliver them to users, so our processes is heavily

relied on information technologies. On the other hand, our overall strategy is cost

leadership, as we have plenty of competitors and new rivals can also easily enter the

industry. Smartphone apps could be easily copied by the others, so our competitive

advantage which survives us would be the first-mover advantage. Therefore, we have to

keep our customers happy and familiar with it by improving technologies like searching

speed, so that customer loyalty could be created.

3.8 Business Processes

3.8.1. THE BEST PARKING LOTS SEARCHING PROCESS -

This process is in order to help the user A to find the best parking lots by getting access to

parking lots’ systems around the destination and determine which parking lot has higher

possibility that the user can get available spaces.

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3.8.2. 6

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ADVERTISING APPLYING PROCESS --THIS PROCESS IS TO PROVIDE INFORMATION ABOUT NEARBY MEALS, E

ntertainments after considering (e.g. the time of arriving & the main functions of the area), so that users’ potential demands can be meet. For instance, if a user goes to CBD at 11am, the system will provide some restaurant aro

Note: The advertising information database we could outsource from our partner---

advertising agency.

3.9 Functionalities

3.9.1. THE BEST PARKING LOT SEARCHING PROCESS

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Help user to find a parking lots that have enough remaining spaces.

Guide users to go to the parking lot.

3.9.2. ADVERTISING APPLYING PROCESS

Provide additional suitable nearby information for user.

Guide users to go to the nearby they are interested in.

3.10 Systems

3.10.1. REACHING POSSIBILITY COMPUTING SYSTEM - This system is response for computing

the possibilities the user can arrive the parking lot with enough spaces. It will link to GPS to

compare with nearby users who are going to the same parking lot, and the real time

parking space computing system below will compute how many remaining spaces does the

parking lot has.

3.10.2. REAL TIME PARKING SPACE COMPUTING SYSTEM - This system is mainly response for

compute the real time remaining parking space. It will link to the systems in each parking

lots and compute the remaining space and then update our database as well as update the

number of remaining spaces shows to the user.

3.10.3. SUITABLE ADVERTISING EVALUATION SYSTEM--

This system can evaluate whether the advertising information is suitable and meet the potential demand of users by considering the time and area’s characteristics that the users chose.

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3.11. Summary Table: Value Chain to Systems

Value Chain Activity

Processes Functionalities Specific Information System(s)

Broad Information System(s)

Technology

development

(and R&D)

1. The best parking lot searching process

1. Help user to find a parking lots that have enough remaining spaces.

2. Guide users to go to the parking lot.

Reaching possibility computing system

Real time parking space computing system

Decision support system(DSS)

2. Advertising

applying

process

1. Provide additional suitable nearby information for user.

2. Guide users to go to the nearby they are interested in.

Suitable advertising evaluation system

Customer relationship management system(CRM)

Decision support system(DSS)

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CONCLUSION

Our start-up business is to provide an application that can predict the best choice of car park

by providing the most quickly and accurately information. Therefore, it can not only help

people improve efficiency, but also be able to reduce the traffic stress and air pollution by

decreasing the average parking lots searching time. Ultimately, we cannot say our product is

a great creation as navigation tools like Google maps have already being well-known for

many years, but we are trying to redefine a navigation application and make it the most

customer-oriented.

REFERENCES

1. Statistics NZ. (2006). Commuting Patterns in New Zealand: 1996–2006. Retrieved from:http://www.stats.govt.nz/browse_for_stats/people_and_communities/Geographic-areas/commuting-patterns-in-nz-1996-2006/car-bus-bike-or-train.aspx

2. Navigation iPhone Apps Review. (2014). Navigation Iphone Apps-Top Ten Reviews. Retrived from: http://iphone-apps.toptenreviews.com/navigation/

3. Sara Angeles. (2012, December 27). How Much Does it Cost to Make an App?: An Infographic. Retrived from: http://www.ideatoappster.com/how-much-does-it-cost-to-make-an-app-an-infographic/

4. Naughton, K. (2013). Recalculating Navigation Needs. Bloomberg Businessweek, (4340), 35-36. Retrived from: Business Source Premier Database

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