INFOSYS.110 BUSINESS SYSTEMS:
DELIVERABLE 2: BUSINESS SECTION2014
NameYashash Chakrapani
NetIDYcha888
Group Number:268
Website Link:http://infosys1102014s1group268.blogspot.co.nz
Tutorial DetailsTutor:Day:Time:
KitWahWednesday12pm
Time Spent on Assignment:29 hoursWord Count:1631
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INTRODUCTIONFinancial Literacy in New Zealand
We wish to produce software thatll best educate a range of users
in New Zealand. This is due to the alarming rate of Financial
Illiteracy so if we provide an inter-active and user-friendly
software then itll help New Zealanders to educate themselves to
make better financial decisions and become more financial stabile
in the future. 3. BUSINESS SECTION 3.1 Vision To provide New
Zealanders with the skills and knowledge required in managing
personal finances and achieving a secure financial future.3.2
Industry Analysis: Financial Education Industry (FEI)Industry:
Financial Education Industry. Adults and kids lacking knowledge
about financial savings and the
benefits.Force:High/Low:Justification:
Buyer power:HighBuyer power in this industry is high as buyers
have plenty of options for obtaining a software that aids users in
FEI e.g. KidsSave. Financial Peace, Jr (Money Crashers, 2014)
Supplier power:LowSupplier power is low due as there are a lot
of software developers who have the ability to provide the software
specific to the requirements of financial education. Also there are
many suppliers for the business to choose from i.e. Netcom3 Global,
LabTech Software, Finch, Entellect, 2U (2U , 2014) (Entellecet,
2014)(Inc. 5000, 2014)
Threat of new entrants:HighThreat of new entrants entering the
FEI is high as there is an abundance of software developers that
can be approached to develop the financial educational software for
the distributor (A Software Startup Guy)
Threat of substitutes:LowThreat of substitutes for the Computer
Software is low because there isnt a substitute that provides the
same level of in-depth and friendly interaction on a different
medium.
Rivalry among existing competitors:HighRivalry amongst existing
softwares providers is high as theyre a lot of firms, as mentioned
above. This means a lot of competition occurs. (Money Crashers,
2014)
Overall attractiveness of the industry: Overall, out of 5
facets, there are 3 that are positive, buyer power, threat of new
entrants and rivalry among existing competitors. This is Indicative
of the industry being unattractive. Its inferred from the industry
analysis that its unprofitable due to the business lacking
competitive edges and so due to easy entry barriers its hard to
maintain profit levels as anyone can enter and produce at a lower
price
3.3 Customers and Their NeedsThe targeted market for the
softwares aimed at people who are want to be educated in making
financial decisions as well as having the ability to manage their
finances and achieving financial security, so ideally its for a
range of users i.e. youth to adults. Using the software can help
build the foundation required for the target market to understand
benefits of saving. Thisll help them to make educated financial
decisions and prevent them from financial instability. Users at a
younger age are much more easier to educate as theyre less likely
to be facing financial burden and so can make educated decisions
when it comes to financial decisions; adults may already be in a
difficult position to educate themselves if theyve taken out large
loans but the software can help educate them in an advisory
capacity. 3.4 The Product and ServiceThe educational software will
satisfy the needs of the customers through various activities.
Therell be interactive activities on the software thatll allow the
users to read a segment and then will be quizzed. Therell also be a
reward system thatll allow the user to progress through different
difficulties, and as they progress, the quizzes and the readings
will get harder. The weekly updates will track progress, and give
pointers to the user in what areas they need to focus on and what
areas theyve excelled in. The product will incorporate a support
system, both online and telephone service to ensure that technical
difficulties are addressed immediately.
3.5 Suppliers and PartnersId choose to partner with ASB as
theyre known to be student friendly, (ASB, 2014) and theyve got
particular focus on younger users i.e. Students. Choosing to cater
to students allows the next generation to make educated decisions
and understand the long-term consequences of their decisions. Id
choose to partner with ASB and have Entellect as a supplier; this
is due to the fact Entellect specializes in educational world-class
interactive games optimized to enhance learning for young students.
This would mean Entellect will work with ASB and us to get the
software across to users and since Entellect (Entellecet, 2014)
Software specializes in interactive games, various users especially
kids-teenagers will more willing to try and play the game; the fact
its an educational software, theyll be able to learn and have fun.
My second supplier and partner would be, The University of Auckland
and 2U Inc. This is because 2U is known across a lot of
Universities to provide them with degrees (2U , 2014). Instead of
having an entire degree we would have 2U develop the software, and
the format would be similar to the Academic Integrity course the
students must complete. The educational software paired with the
University of Auckland will allow for the software to be successful
as the University can offer it as course where students can partake
to further their understanding of managing their finances as
University is a key time in a persons life. Offering the course
will allow the students to understand the value of their finances
and thisll teach them to make educated decisions for the future.
Thisll help satisfy the customer needs of having financial
education and this newfound knowledge would help to educate them
and manage their finances as well as being able to achieve
security.
3.6 Strategy: Cost LeadershipOur business is targeting the Broad
market, as weve got very minimal restrictions. The reason our
business chose not to have any market restrictions is because, we
want as many New Zealanders, regardless of age and social class, to
make the best financial decision, and also ties in with the fact
itll be Low Cost. We dont want to restrict our software market to
just a particular social class, and therefore weve made it
affordable and low cost for customers to buy. Hence why out of
Porters Generic Strategies we chose to follow Cost Leadership. 3.7
Value Chain Activity: Make The Product The most important value
chain activity our firm is Making the Product. This is because our
vision statement is To provide New Zealanders with the skills and
knowledge required for managing personal finances and achieving a
secure financial future. We believe the best way to do this is to
make an inter-active, user-friendly software. So the low cost
strategy and a scope for a broad market, we are able to offer our
product to a large portion of New Zealanders. Having a Cost
Leadership Strategy and using Making the Product Value chain
activity, we can provide them with software that teaches the users
the skills and knowledge to be more successful hence resolving the
problem of Financial Illiteracy amongst New Zealanders.
3.8 Business Processes3.8.1. Programming process The
illustration below shows how the data collection is based on the
financial illiteracy statistics, and only the useful data thats
approved by analysts, is incorporated into making the software. Any
irrelevant data is disregarded and only the data thats helpful is
incorporated so we can produce a software thats comprehensive and
complete, so the customers are aligned with our vision statement
and cost strategy, which is to equip them with the best possible
skills and knowledge to make the decisions financially hence
securing a financial stability in their future, at a low cost.
3.8.2. Technology development process The Technology development
process is an integral link to the value chain activity of our
product. Our product will be made with technology developments i.e.
maintenance and development of our software; well be able to manage
any arising issues. We intend to have the product tested before
sending it to the manufacturer to produce and ensure that its
debugged. This process of ensuring the debugging and testing of the
software will allow us to update customers with accurate knowledge
and skills to improve their financial literacy to make educated
decisions.
3.9 Functionalities 3.9.1. Program process Collecting relevant
data. Develop key concepts of financial literacy. 3.9.2. Technology
Development process Bug Fixes Financial Analysts approve the
content 3.10 Systems
3.10.1. Data collection system The Data collection system
incorporates the collection of relevant data at the initial stages
of the system. The kind of relevant data collected will be to see
the level of financial illiteracy, based on this we develop the key
concepts. Due to the in-depth analysis of the illiteracy rates we
can produce effective software thus satisfying customer needs.
3.10.2. Key Concept Development system Thisll develop the key
concepts in the financial educational software. Due to the
fast-paced and never stagnant lifestyle of humans, were able to
regularly update the software and thisll help align the software
with the vision of our company.3.10.3. technology development
system The Technology Development system helps financial analysts
to approve the concepts of financial literacy when they modify the
software when users experience any bugs. We can help solving the
technologic errors or bugs and fix it by and so the system aligns
itself with our vision statement of maintaining
user-friendliness.
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3.11. Summary Table: Value Chain to Systems
Value Chain ActivityProcessesFunctionalitiesSpecific Information
System(s)Broad Information System(s)
Service after Sales1. Program Process 1. Collecting relevant
data.
2. Develop key concepts of financial literacy.
Data Collection System
Supply Chain Management
2. Technology Development Process 1. Bug Fixes
2. Financial Analysts approve the content
Technology Development SystemSupply Chain Management
CONCLUSION The overall cause for us producing this software is
help to educate the users with financial literacy and so they can
make educated financial decisions and thisll help them achieve
manage finances and achieve financial stability.
Bibliography2U . (2014, 05 24). From 2U:
http://en.wikipedia.org/wiki/2U_(company)A Software Startup Guy.
(n.d.). From A Software Startup Guy:
http://www.asoftwarestartupguy.com/2012/07/its-not-about-low-barriers-to-entry.htmlASB.
(2014, 05 24). From ASB: https://www.asb.co.nz/tertiary/Entellecet.
(2014, 05 24). From Entellect: http://www.entellect.com.auInc 5000.
(2014, 05 24). From Inc 5000:
http://www.inc.com/profile/projekt202Inc. 5000. (2014, 05 22). From
Inc. 5000:
http://www.inc.com/inc5000/list/2013/industry/software/x/rankInc5000.
(2014, 05 24). From Inc5000:
http://www.inc.com/profile/labtech-softwareMoney Crashers. (2014,
05 23). From Money Crashers:
http://www.moneycrashers.com/best-kids-educational-software-programs-money/
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