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1. The document discusses a business proposal for a mobile phone application that would automatically block notifications while a vehicle's engine is running to prevent distracted driving.
2. It analyzes the phone use while driving app solutions industry, finding high buyer power, low supplier power, high threat of new entrants, low threat of substitutes, and high rivalry among existing competitors, making it an unattractive industry.
3. The business would pursue a cost leadership strategy and focus on superb marketing and selling processes to differentiate itself, in line with its vision of uniting people to rid roads of distracted drivers.
1. The document discusses a business proposal for a mobile phone application that would automatically block notifications while a vehicle's engine is running to prevent distracted driving.
2. It analyzes the phone use while driving app solutions industry, finding high buyer power, low supplier power, high threat of new entrants, low threat of substitutes, and high rivalry among existing competitors, making it an unattractive industry.
3. The business would pursue a cost leadership strategy and focus on superb marketing and selling processes to differentiate itself, in line with its vision of uniting people to rid roads of distracted drivers.
1. The document discusses a business proposal for a mobile phone application that would automatically block notifications while a vehicle's engine is running to prevent distracted driving.
2. It analyzes the phone use while driving app solutions industry, finding high buyer power, low supplier power, high threat of new entrants, low threat of substitutes, and high rivalry among existing competitors, making it an unattractive industry.
3. The business would pursue a cost leadership strategy and focus on superb marketing and selling processes to differentiate itself, in line with its vision of uniting people to rid roads of distracted drivers.
Name Aram Valesyan NetID aval651 Group Number: 256 Website Link: http://infosys1102014s1group256.blogspot.co.nz/ Tutorial Details Tutor: Day: Time: Olivia Schultz Thursday 9am Time Spent on Assignment: 25 hours Word Count: 1649
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2 DELIVERABLE 2 INTRODUCTION Phone use while driving is endemic in New Zealand. In 2010-2012, 179 drivers in fatal/injury crashes were distracted by cellphones (Ministry of Transport, 2013). Texting and calling arent the only issues; Snapchat, Facebook, and other applications are tempting distractions for NZ motorists. This is a clear problem, and the solution is also clear. Stop motorists from accessing texts, calls, Snapchats, and other notifications while they drive. The means to this end is a phone application. It will enable your phone to sense when your engine is running, and will automatically block notifications for the duration of the trip. It will not make your phone completely unusable, as notifications will only be blocked while the engine is running, so to check your phone, all you have to do is pull over and turn off your vehicle. 3. BUSINESS SECTI ON 3.1 Vi si on To unify the people of the world in a mission to rid our roads of the danger of distracted drivers, through popular, customer-centric software solutions. 3.2 Industry Anal ysi s: Phone use while driving app solution industry
Force: High/Low: Justification: Buyer power: High There are many app solutions available to consumers that want to limit their phone use while driving, such as iZup, tXtblocker and CellSafety (Yahoo, 2014). Therefore buyers have many options when purchasing, which means that buyer power is high. Automative Fleet further outlines 6 apps that are leading the industry, including Sprints Drive First, Textecution, and Cellcontrol. (Automotive Fleet, 2011) Supplier power: Low Software developers are plentiful and relatively inexpensive, (can be as cheap as $25 dollars an hour with Eastern European firms (Mobiversal, 2014)) and will compete and drive prices down for designing the software needed.
Threat of new entrants: High Carter Thomas (2014) estimated that smartphone apps can be as cheap as $1000 (USD) to develop. Therefore, there are very low barriers to entry. With such relatively low costs, entering the phone use while driving app solutions industry would be seen as a low risk move, especially by big
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3 corporations (some of which, such as Sprint, have already entered this industry).
Threat of substitutes: Low Services such as Vodafones DriveSafe are available to stop you from receiving texts while you drive, however if you want to selectively disable tempting notifications on your smartphone, the only solution is an app. There is not a viable substitute for consumers wanting to achieve this.
Rivalry among existing competitors: High The market is flooded with inexpensive or free applications to stop you from getting notifications or receiving texts and calls, such as iZup, tXtblocker and CellSafety (Yahoo, 2014). Therefore competition for the consumers dollar is very high.
Overall attractiveness of the industry: The industry is not attractive as it is very competitive (high rivalry amongst existing competitors and low barriers to entry coupled with high buyer power) which outweighs the low supplier power and low threat of substitutes. My company will need a significant competitive advantage to be able to succeed amidst this high level of competition. This advantage could be achieved through superb marketing and selling processes. 3.3 Customers and Thei r Needs Potential customers are any person who owns a smartphone/tablet, and carries this device with them in their vehicle while driving. Customers are distracted by notifications, and need a solution that will provide a happy medium between completely turning your device off and losing access to music and maps, and receiving a constant stream of notifications, which are distracting and can be dangerous. Customers need an application that will stop notifications from texts and calls, and other applications such as Snapchat, while still allowing them to listen to music and access maps. 3.4 The Product The product will be able to sense when the vehicles engine is running, and automatically disable any notification-giving apps, such as texts, calls, and Snapchats. However, it will leave applications such as GPS and music untouched, meaning that the motorist can still enjoy music and use their essential maps, as these applications dont tend to impact motorists during the drive. 3.5 Suppl i ers/Partners Potential suppliers could include software developers, (such as Moa Creative) motion sensor producers and software maintenance specialists such as Luxoft. The application will firstly need to be developed by a software developer, and an external motion sensor could be required for the app to be able to sense if the
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4 engine is running. Maintenance and updates will be required regularly, so a company specialising in software maintenance such as Luxoft will also be a supplier. Partners could include the New Zealand Transport Agency (and potentially other governments around the world) and anti-distracted driving lobby groups and organisations worldwide, such as the National Safety Council.
3.6 Strategy: Cost Leadership The product will be relatively cheap to develop, as prices start from approximately $6,000 USD. (Crew, 2014) It will be aimed at a very broad market: people with smartphones who drive. The overall strategy is therefore Cost Leadership. 3.7 Val ue Chai n Acti vi ty: Marketing and Sel l ing The market for apps that limit phone use while driving is flooded with cheap, but limited solutions. To work towards our vision of uniting the people of the world, and being a customer-centric, popular solution, superb marketing and selling processes are a must. People will simply not know about the app if strategic, marketing campaigns are not launched, and user-friendly selling processes arent employed, to bring our product to the customer as simply and easily as possible. As stated earlier, our superb marketing and selling processes are what will differentiate our product and company, and lift us above the competition in the eyes of the consumer. 3.8 Busi ness Processes 3.8.1. MARKETING PLANNING PROCESS - The marketing planning process will be crucial to the business success. In order to be a popular and people-uniting company, the business must be known for its funny, intelligent, and thought provoking marketing campaigns. The process of planning these marketing campaigns will be very important, as meticulous attention to detail will need to be paid, so that the campaigns will have maximum effect, and bring our product to the most people possible, in the most natural way. This will help achieve the vision, as customers will perceive the company as popular due to its famous marketing campaigns.
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6 3.8.2. PRODUCT SELLING PROCESS - This will also be crucial to the business. It is imperative that the business be known for its customer-centric sales process approach, as this will help raise the business above the competition, essentially, a customer focused approach is what will set us apart. To really unite people in becoming passionate about ridding the world of distracted drivers, the business has to appeal to people from their first, and most important, direct contact with the company, the sales process. This is why customer- driven customisation is included in the selling process, and not left as an afterthought. Customers will be able to specify exactly how they want their app to look, perform, and integrate with the specific operating system on their device, therefore making it natural and easy to purchase our application, which will lead to achieving the vision of the company, as the app will be popular with customers and viewed as customer-centric.
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8 3.9 Functi onal i ti es
3.9.1. MARKETING PLANNING PROCESS Display business performance data, such as sales figures and seasonal changes. Provide data about competitors 3.9.2 PRODUCT SELLING PROCESS Record customer preference details Process payment from customers 3.10 Systems
3.10. 1. CUSTOMER MANAGEMENT CRM SYSTEM - This system will record data from the customers about their preferences, identify prospective customers for sales in the future, and collate customer contact information. It will also help to process payment, as maintaining contact information can help iron out any kinks in the payment process. This will make shopping for and purchasing the app a smooth process for the customer, perpetuating the perception of the company as customer-centric, making the company more popular and on track to achieve the vision. 3.10. 2. PAYMENT PROCESSING SYSTEM - This system will process payment from customers, and record details of their preference in payment style. This means that the company will be able to present the returning customer with a smooth, simple purchasing process, as it will be shortened due to payment details and preferences already being recorded. This will help the company be perceived as popular and customer-centric, thereby supporting the vision. 3.10. 3. INDUSTRY DATA MANAGEMENT SYSTEM - This system will collect performance data about our business and the competition, and display this data side by side, for easy analysis. This will help our business marketing campaigns anticipate and respond to competitors marketing campaigns and strategies, and thereby supporting the vision by making the company more popular, and unifying peoples opinion of the company and vision through this popularity.
3.11 Summary Tabl e:
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9 VCA Processes Functionalities Specific Information System(s) Broad Information System(s) Marketing and Selling Marketing planning process. Display business performance data, such as sales figures and seasonal changes.
Provide data about competitors
Industry data management system Transaction processing system Product selling process. Record customer preference details
Process payment from customers
Customer management CRM system
Payment processing system Customer relationship management system
Transaction processing system
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10 CONCLUSION In conclusion, this company aims to unify the people of the world in a mission to rid our roads of the danger of distracted drivers, through popular, customer-centric software solutions. The main software solution at this stage is a mobile app, which will disable notifications on mobile phones while the motorists engine is running. Information systems and technologies are crucial for the success of our company, with our product in itself being a technology, and information systems playing a critical role in the success of the business processes that will ultimately ensure the success of this company.
REFERENCES
Crew, 2014, How much to make an app Retrieved from: www.howmuchtomakeanapp.com iKeepSafe, 2014, Fighting Technology With Technology; Apps That Prevent Texting While Driving Retrieved from: https://safely.yahoo.com/blogs/expert-advice/fighting-technology-technology-apps- prevent-texting-while-driving-111736429.html Automative Fleet, 2011, 6 Mobile Applications to Prevent Distracted Driving Accidents Retrieved from: http://www.automotive-fleet.com/channel/safety-accident- management/article/story/2011/08/6-mobile-applications-to-prevent-distracted-driving-accidents.aspx Mobiversal, 2014, How Much Do Mobile App Developers Charge Per Hour? Retrieved from: http://blog.mobiversal.com/mobile-app-development-cost.html Carter Thomas, 2014, How much does it cost to develop an app? Retrieved from: http://www.bluecloudsolutions.com/blog/cost-develop-app/ Ministry of Transport, 2013, Diverted Attention Crash Facts Retrieved from: http://www.transport.govt.nz/research/crashfacts/divertedattention/
S.110 Business Systems: Deliverable 2: Business Section 2014 Name Marthalena Heather Netid Group Number: Website Link: Tutorial Details Tutor: Day: Time: Time Spent On Assignment: Word Count: 1641