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INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS SECTION2014

Name Jackson CroppNetID jcro667Group Number: 276

Website Link: http://infosys1102014s1group276.blogspot.co.nz/2014/04/welcome-to-group-276-assignment-page.html

Tutorial DetailsTutor: Day: Time:Kirsten van Dorp Thursday 11am

Time Spent on Assignment: 12 Hours Word Count: 1649**

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AUCKLAND TRANSPORT (AT) ISSUESINTRODUCTION

Our group has discovered a major problem in Auckland. Many buses are full or near full

during rush hour, and not all passengers know which bus is the emptiest, and therefore the

easiest and best bus for them to hop on. Currently users don’t know how full there desired

bus is, and hence either forced to miss it (when it does arrive already full), cram unsafely up

to the windscreen, or take a chance on another bus. Transfo uses existing AT HOP user

accounts, bus GPS systems, and develops new information systems to track user’s bus trips.

A server will collect data on how many people are currently on board, how many people

usually hop on at the next station, improve accuracy of bus position (via higher performance

servers) and alternatives to the bus the user could be interested in to help get the user to

his/her desired destination on time.

3. BUSINESS SECTION

3.1 Vision

To create an app containing accurate public transport information everyone can use and

understand, to get them to the right place at the right time.

3.2 Industry Analysis: Mobile Applications

Force: High/Low: Justification:

Buyer power: LowBuyer power is low because there are many buyers; each one does not have significant power. Buyers are unable ‘switch’ to another app, as we don’t give others access to the information our servers develop and store.

Supplier power: HighSupplier power is high as we need information from Auckland Transports databases in order to create the information our users need.

Threat of new

entrants:High

Threat of new entrants is high, as although we develop the information for our app based of AT’s databases, upfront capital and time costs of creating an app, and using AT’s databases are relatively low.

Threat of Low Threat of substitutes are low, as there are currently no substitutes that offer the same or similar information.

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substitutes:Users can get more basic information off AT’s website or app, however this can be inaccurate, hard to use, and overall ineffective.

Rivalry among

existing

competitors:

Low

There are low rivalry among existing competitors, as no other app is available in NZ that provides what our app provides; detailed information on room available on busses, more accurate tracking of each bus, demand for each bus.

Overall attractiveness of the industry: The mobile application development industry has a

high threat of new entrants due to low start-up costs, however if we are the only app

allowed to use AT’s information systems, then it would be relatively hard for another app to

substitute our app, without that vital information, so assuming that, the industry is

attractive.

3.3 Customers and Their Needs

Our potential customers would be people needing to get from outside the city (eg

Takapuna) into the city in a timely manner, like students or workers. “Public transport

improvements have been nominated by 54.6 per cent of participants in the latest poll, taken

last week, as the best way to improve Auckland's traffic problems.” (Dearnaley, 2013). Our

potential customers need to get to town in a timely manner. As the quote above suggests,

many (54.6%) participants taken in the 2013 poll believe improvements in public transport

will improve Auckland’s traffic problems. There are currently over 93000 customers with

AT HOP cards(Dearnaley, 2012), these are key potential customers for us.

3.4 The Product and Service

Transfo offers customers the knowledge they need, via a smart phone app to get them to

their desired destination in the city with less hassle, by giving users better understanding on

how ‘full’ each bus is (based on number of people tagged on and on the bus size), and how

many people will hop on the bus before it gets to them. This gives users the knowledge

they need to make a decision on the best bus to take (emptiest and best suited for their

destination), and hence the best way of transport into the city. To access our app’s

information, the user logs on and pays 20 cents, from their HOP, debit or credit card and

gets an unlimited amount of access to the information for that day.

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3.5 Suppliers and Partners

Partners:

We would need to partner with AT to gain access to their information systems (databases),

AT HOP user accounts, and the bus GPS systems. We would need to partner with an app

developer, who would help guide us to develop our smart phone app.

Suppliers:

We would need to have a server/computer supplier, to track users bus trips, and to

calculate (using ATs information systems listed above) how many people are currently on

board (tagged on or paid the fare), and how many people usually hop on at the next station

(to work out demand). We would also need an internet service provider (like Telecom) to

connect our information systems with our customers smart phones.

3.6 Strategy: Broad cost leadership.

We are aiming our app at the broad market, anyone from ‘high flying’ business men to

university student, who are interested in using public transport to get them somewhere (eg

airport or university), there are currently no other AT apps providing this valuable, more

accurate information. Our pricing strategy is low, being every day a user logs on; they are

charged a set amount (20c) for unlimited access for the day to our detailed information.

The overall strategy is therefore Broad cost leadership.

3.7 Value Chain Activity: Service after the sale

The most important value chain activity for this business is the value the user gets “after

the sale”.

Transfo generates its value from basing itself off the software as a service model (SaaS),

where we offer our app for free up-front and monetize on additional content and feature

where the user pays a daily fee (Suter, 2012), to access the app through their smartphone,

whenever believe they need the extra information our servers generates (eg university

student had an important test and wanted to make sure he/she was there at x time).

Anyone with a smartphone can access and download the free app, then pay the small fee

for daily access to live, updating by the minute, then receive value by viewing accurate

information on public transport services, eg how full the bus is, more accurate bus tracking,

how many people will hop on the bus before it gets to them.

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3.8 Business Processes

3.8.1. START UP & LOG IN BUSINESS PROCESS

This process shows how the app ‘starts up’ - starting with customer login, then the customer

is charged, then the app displays the latest information to the customer (bus location, bus

fullness, etc).

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3.8.2. ADDING A NEW CUSTOMER BUSINESS PROCESS

This process shows how a customer is added to our system. The application is downloaded,

then opened by the customer, the customer then enters details such as name and email, is

then required to validate their email, followed by paying the 20c setup fee (the card they

chose to draw money from is checked for validity), if payment is unsuccessful, card details

are asked to be entered again. If payment is successful, the card details are added to

customer’s details, and they are given onec day’s access to our information.

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3.9 Functionalities

3.9.1. START UP & LOG IN PROCESS

To provide public transport information data from Transfo servers to customers phone.

To track how many times customers are logging in to the app (for internal use, eg for use in KPI’s).

3.9.2. ADDING A NEW CUSTOMER PROCESS

To register/gain customers. To track customer growth and activity (eg how many people create an

account and provide card details).

3.10 Systems

3.10.1. TRANSACTION PROCESSING SYSTEM – In both business processes listed above,

transaction processing systems are a key element, as they help charge the customer for the

use of the data the app provides, and therefore help us earn revenue, which can then be

used to further improve the app (eg upgrading servers to improve usability and accuracy).

3.10.2. KNOWLEDGE MANAGEMENT SYSTEM – In both business processes listed above, a

knowledge management system is required to help store each customer’s personal

information (card details, email etc). This allows the customer to access the system, as

when they login, there details will be checked against records held in the knowledge

management system.

3.10.3. CUSTOMER TRACKING SYSTEM – Used in conjunction with the Knowledge

Management System to track customer activity for internal use to analyse any feedback

they have, and create KPI’s such as frequency of logging in, revenue earned per customer.

Also used to email customers of any upcoming promotions we may have.

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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)

Service

after

the

sale

Start up and login process.

1. To provide public transport information data from Transfo servers to customers phone.

2. To track how many times customers are logging in to the app.

1. Customer Tracking system

2. Knowledge Management system

1. Collaboration System

2. Enterprise Resource Planning

Adding a new customer process.

1. To register/gain customers.

2. To track customer growth and activity.

1. Customer Tracking system

2. Knowledge Management system

1. Transaction processing system

2. Customer relationship management system

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CONCLUSION

Transfo helps a broad range of public transport users have low cost access to accurate

information, giving them the knowledge they need to make the best decision on what bus

to take. Our app does this by helping them get to their desired destination in the city with

less hassle, by giving users better understanding on how ‘full’ each bus is, and how many

people will hop on the bus before it gets to them. Our app is simple, yet innovative way of

helping commuters, as well as generate revenue for Transfo, using the SaaS principle.

Various information systems are an integral part of Transfo, helping get data from Transfo’s

servers to customer’s smartphones and vice versa, supporting our vision.

REFERENCES

1. Suter, F. (2012). Analysis of the app market based on Michael Porter’s five competitive forces. Retrieved from 3xhappiness.comhttp://3xhappiness.com/analysis-of-the-app-market-based-on-michael-porters-five-competitive-forces/

2. Dearnaley, M. (2013, October 22). Transport is Auckland’s big issue. The New Zealand Herald. Retrieved from www.nzherald.co.nzhttp://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11143807

3. Dearnaley, M. (2012, February 14). Commuters express privacy fears over Hop card ad blitz. The New Zealand Herald. Retrieved from www.nzherald.co.nzhttp://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=107853961

Other References used for general knowledge and understanding:1. Public Transport in Auckland. n.d In Wikipedia. Retrieved May 22 2014 from

http://en.wikipedia.org/wiki/Public_transport_in_Auckland

2. Transport in Auckland. n.d In Wikipedia. Retrieved May 21 2014 fromhttp://en.wikipedia.org/wiki/Transport_in_Auckland

3. AT HOP card. n.d In Wikipedia. Retrieved May 22 2014 fromhttp://en.wikipedia.org/wiki/AT_HOP_card

**PLEASE NOTE: Word count of 1649 is excluding references, first (cover) sheet, and business processes 1 and 2, as they are images, and hence cannot be counted.

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