INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS SECTION2014

NameLouisa Blair

NetIDlbla545

Group Number:007

Website Link:http://infosys1102014s1group007.blogspot.co.nz

Tutorial DetailsTutor:Day:Time:

Kit-Wah HuangMonday9am

Time Spent on Assignment:9h5mWord Count:1637

1

information systems in businessINTRODUCTIONTechnology 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 IndustryIndustry: The Mobile Apps Industry. The global mobile applications industry relating to all platforms and app categories.Force:High/Low:Justification:

Buyer power:HighConsumers 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 choices that buyer power remains high.

Supplier power:LowIndustry 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:HighApp 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:HighApps 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:HighGiven 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. 3.3 Customers and Their NeedsThe 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 ServiceThe 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 PartnersSuppliers 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 CostAs 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 DevelopmentThe 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-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 Processes3.8.1. 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.

PRODUCT DEVELOPMENT PROCESS MODEL:

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:

3.9 Functionalities 3.9.1. Product development process Analyse and display concept testing results Calculate potential revenues and cost figures for concepts3.9.2. market research process Categorising data Analyse patterns in data 3.10 Systems

3.10.1. data analysis 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 screening 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. Financial 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.9

3.11. Summary Table: Value Chain to Systems

Value Chain ActivityProcessesFunctionalitiesSpecific Information System(s)Broad Information System(s)

Technology Development1. Product Development Process 1. Analyse and display concept testing results.

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

Financial Modelling SystemDecision Support System

Decision Support System

2. Market Research Process 1. Categorise data.

2. Analyse patterns in data.Data Analysis System

Data Analysis SystemDecision Support System

Decision Support System

10

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/ 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/

12

Information Systems

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

Information Systems

Conceptualise Research Design

START of Market Research Process

Assemble Market Research Team

Identify Problem or Opportunity within Market

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