Name Peiqiong Su

Net ID psu011

Group Number 225

Website Link http://infosys1102014s1group225.blogspot.co.nz/p/d2_16.htmlTutorial Details Tutor: Day: Time:

Yvonne Hong Wednesday 11am

Time spent on assignment 27hours Word Count: 1647

MoneetracNew and interesting products are constantly tempting us to get our hands on them at all costs. However, throughout this pursuit of materialism Kiwis are losing the importance of saving. Kiwis have trouble with saving money and this is a problem as one in four Kiwi kids live in poverty. Kiwis save only about 2-3% of their income and admit they struggle to pay necessities such as rent, electricity, food etc. However, this is when Moneetrac steps in. Moneetrac is a smart, quick, and fun app that enables Kiwis to connect to and control their savings wherever and whenever.

3.1 Vision

To provide a unique tool that will connect anyone, at any time, in anywhere to their savings to manage and plan for a brighter future.

3.2 Industry Analysis: Online saving industry

Force: High/Low: Justification:

Buyer power: High There is already quite a few amount of apps out there such as SavedPlus, Mint, Microsoft Money, so

therefore buyers have many choices as to which brand they want to use therefore buyer power is high (Hiscott, 2013).

Supplier power: Low There is a wide range of choices for app suppliers, such as computing engineers who make the app, internet service providers, and marketing suppliers, so supplier power is low as there is a variety of different suppliers to choose from (Lanyado, 2013).

Threat of new entrants: High In this industry new entrants can easily enter the market because it doesn't require too much money, great knowledge and technology know-how to build an app, and so it is not that difficult for new entrants to break through that barrier (Lanyado, 2013).

Threat of substitutes: Low There are not many other tools for saving and managing money except by hand writing budgets or plans, or putting it in a jar which are time consuming and can easily get lost so therefore threat of substitutes is low (Caldwell, 2014).

Rivalry among existing High As there are many existing online money saving competition: apps, rivalry between them is high. They are all

competing to win over customers to get them to use their app instead of others by distinguishing themselves by the use of competitive advantages such as advanced features (Hiscott, 2013).

Overall attractiveness of the industry: The online money saving industry has high rivalry among its existing competitors as well as a high buyer power and threat of new entrants. Overall, I would recommend entering this market because even though it is a tough industry to tackle as there are already so many existing apps, if you have strong competitive advantages to distinguish yourself from the rest then you would be able to survive and be profitable especially in today's world where money is scarce and more people are looking for ways to save.

3.3 Customers and their needs

Customers for Moneetrac could really be anyone who needs help with their savings, young or old. It is recommended for young adults who are in their early 20s because a survey done by Financial Education and Research Centre shows that 18-22 year olds have relatively low level of financial knowledge (Masey University, 2014). It is also suitable for older adults who wants to buy a house or who want to retire comfortably as 62.9% of Kiwi adults admit that they don't feel they're saving enough to retire comfortably (NZ Herald, 2012).

3.4 The product and service

Moneetrac will provide the tool needed to connect customers to their bank accounts to enable them to directly manage their money and savings. Through Moneetrac customers can create budgets and goals and allocate their money into different goals and budgets so that they know exactly how much they've got and how much more savings are needed to reach a specific goal or meet a budget. Using Moneetrac teaches customers on how to save and instils good saving behaviours that will benefit them deeply for the rest of their lives.

3.5 Suppliers and Partners

One supplier of Moneetrac is Roam Ltd which provides computing engineering services who use their IT skills to actually build the app so that Moneetrac can function properly and reliably. Another supplier is Apprb (AppRankBoosting) where they will provide marketing and promotion services for Moneetrac to ensure that it gets high ranking to attract more customers.

One partner for Moneetrac is banks eg. ASB because partnering with them would enable our customers account to connect with Moneetrac so that they can manage their money and savings through this app. Another partner is PayPal where customers can make payments securely online.

3.6 Strategy: Cost leadership strategy

Moneetrac will be targeting a broad market. This is because the services that Moneetrac offers are applicable and useful to people of all ages and lifestyle and so it will be best to market it to a broad market.Moneetrac will focus on a low cost strategy mainly because it specializes in helping customers save money and so it would only be good common sense to charge a low cost. It'll also encourage people to use Moneetrac as opposed to high cost which would only discourage customers who are already struggling with money.The overall strategy is therefore the cost leadership strategy.

3.7 Value Chain Activity: Market and Sell the product

An important value chain is marketing and selling the product. Marketing and selling the Moneetrac app is very important because providing this helpful money saving tool won't be of much use if customers don't know about it. Under market and sell, customers across the broad market will be reached ensuring that as many people as possible will know about Moneetrac to help them become smart savers. Moneetrac's cost leadership strategy will further help sell the product by attracting customers with its low cost.

3.8 BUSINESS PROCESSES

3.8.1 CONNECT TO BANK PROCESS - An important process for Moneetrac is that it should be able to connect customers to their banks as this would then help sell the app

as it enables customers to have access to their bank accounts so then they could use Moneetrac's services to manage their money and savings and plan for a financially secure future. This process is first initiated when Moneetrac receives a customer's membership information which then will then be used to verify with their chosen bank. If the information is correct then Moneetrac can connect the customer's bank with their Moneetrac account and send a notification of the completed membership. If the information provided is incorrect or incomplete then it would be sent back for the customer to correct.

3.8.2 PROMOTION PROCESS - The promotion process is vital for Moneetrac's survival because it is critically important that Moneetrac markets and sells its app and that it encourages customers to continue using their service. In order to retain customers Moneetrac must satisfy their customers' needs which is help them to manage and save money to secure a brighter future, but to do this Moneetrac must use the low cost strategy to provide better, lost cost features for their customers to further help them save. This process is started off by collecting trends of customers' saving behaviours which are then needed to be analysed to help identify each customers' saving and spending level. A suitable savings feature is then allocated depending on the specific level which is then checked to see if the customer already have this feature. If they have all the recommended features then they don't receive notifications but if they don't then a recommendation is sent to them about the feature.

3.9 FUNCTIONALITIES

3.9.1 CONNECT TO BANK PROCESS

- Receive and record customer's information- Connect customers to their bank account

3.9.2 PROMOTION PROCESS- Identify customer saving and spending behaviour trends - Recommend a suitable savings feature

3.10 SYSTEMS

3.10.1 CONNECT TO BANK SYSTEM- This system's main goal is to connect Moneetrac's customers to their bank accounts and in order to do so one of its functionalities is to receive and store the customers' information that they have given which would then be used to connect customers to their bank accounts. Without these functionalities Moneetrac would not be able to operate because it's Moneetrac's primary goal to provide a unique tool to help its customers to save and if they cannot connect to their bank savings then Moneetrac would be of no use to customers.

3.10.2 FEATURE PROMOTION SYSTEM- The purpose of this system is to support Moneetrac in retaining its customers by the promotion of advanced features to customers to further support them in their money saving and planning. It does so by using one of its functionalities which is to determine the most suitable feature recommendation for that specific customer to buy.

3.10.3 TREND ANALYSIS SYSTEM- This system involves the functionality of analysing the information of customers such as their saving and spending and generates trends which could be used for promotion purposes or to better improve Moneetrac's services to provide a better money saving tool to further help customers save money.

3.11 SUMMARY TABLE: VALUE CHAIN TO SYSTEMS

Value Chain Activity

Processes Functionalities Specific Information System(s)

Broad Information System(s)

Market and sell the product

Information transference

process

- Receive and store customer's information

- Connect to bank

Information Transference System

TPS

Promotion process

- Identify customer's savings and spending behaviour trends

- Generate a feature recommendation

Trend Analysis System

Feature Promotion System

CRM

DSS

Moneetrac is an app which will basically provide a useful tool to help customers control their spending and savings and ultimately help them to help themselves secure a more financially stable future which would impact positively not just for themselves but also for their kids and the economy. The information systems used by Moneetrac delivers tremendous value by facilitating the business processes by capturing, processing, storing, and distributing information which are essential to operate and manage Moneetrac.

References

App Rank Boosting. (n.d). We are the unique agency with the power to guarantee top 10. Retrieved from http://www.apprb.com/gad/?gclid=COORqbfBw74CFYeVvQoddmQALQ#a

Caldwell, M. (n.d). How to budget successfully. Retrieved from http://moneyfor20s.about.com/od/budgeting/tp/How-To-Budget-Successfully.htm

Hiscott, R. (2013). 25 apps to save you money. Retrieved from http://mashable.com/2013/11/01/apps-for-money/

Ihaka, J. (2012, November 20). Young Kiwis aren't saving-survey. The New Zealand Herald. Retrieved from http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10848644

Krause, N. (2012, March 7). Most Kiwis save too little to retire. Retrieved from http://www.stuff.co.nz/business/money/6534058/Most-Kiwis-save-too-little-to-retire

Lanyado, B. (2013, March 26). How to become a mobile app millionaire. The Guardian. Retrieved from http://www.theguardian.com/theguardian/shortcuts/2013/mar/26/how-to-become-an-app-millionaire

Massey University. (2014). Young Kiwis know the drill but are not saving. Retrieved from http://www.massey.ac.nz/massey/about-massey/news/article.cfm?mnarticle_uuid=DEBC0C9F-EB5E-B92D-744A-B176CC2F1364

Parker, T. (2012, June 13). Kiwis 'not saving enough to retire on'. The New Zealand Herald. Retrieved from http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10812617

Power cut-offs quadruple since 2008. (2014, March 25). 3 News. Retrieved from http://www.3news.co.nz/Power-cut-offs-quadruple-since-2008/tabid/423/articleID/337313/Default.aspx

Roam. (2014). About Roam. Retrieved from http://www.roamltd.com/?gclid=CL6Y-ui_w74CFVF8vQodHCcAcA

University of Auckaland: Faculty of Education. (2013). Investing in our Nation's kids. Retrieved from http://www.education.auckland.ac.nz/en/about/schools-departments/crstie/crstie-research/crstie-research-units/child-poverty.html