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Name Callen Baxter
NetID cbax988
Group Number: 058
Website Link:
Tutorial Details
Tutor: Day: Time:
Kayur Ramson Monday 12pm
Time Spent on
15 Hours Word Count: 1650


Personal debt is an ever-growing problem in our society, and unfortunately people lack the
motivation to do anything about it. To motivate and ensure money management we created
the BudgetBuddy app, which tracks, monitors and forces people to stick to their budget.
Budgeting is seen as hard and problematic, by creating BudgetBuddy, which removes the
hassle and stress, it solves the motivation problem and helps people effectively manage
their money.
3.1 Vision
To create a debt free world
3.2 Industry Analysis: Budgeting Application Industry
Indusrty: Budgeting Application Industry
Force: High/Low: Justification:
Buyer power: Low
Low because if they wish to have an automated
budgeting system rather than something that
requires manual entry they are forced to purchase
a budgeting app of some form.
Supplier power: High
Due to the high number of competitors in the
application industry there is a lot of competition
over the best quality suppliers. As a result, high
quality suppliers are able to choose who they
wish to work for (Dew Mobility Blog, n.d.).
Threat of new entrants: High
Low as anyone can try to make an app and there
are plenty of programs that allow even those with


limited tech knowledge to do so. This creates a
high threat of new entrant, especially if the
population sees it as a lucrative industry.
(Gordon, 2009)
Threat of substitutes: Low
Low as there are very few options for automated
budgeting. If a user wishes to remove the hassle
of a budget they have little choice other than an
automated app (Babauta, 2007) (Koploy, 2014)
Rivalry among existing
There are currently many budgeting apps that
exist within the industry, they all preform much of
a similar task and compete for the same user
base. As a result there is a lot of competition in
the industry so rivalry among competitors is high.
(Zoomer, 2014)
Overall attractiveness of the industry: The industry is relatively attractive due to a lack of
substitutes and the possibility of succeeding in an industry where you can control the buyer.
However there is massive competition among existing competitors and always the threat of
new ones, as well as high supplier power.
3.3 Customers and Thei r Needs
The target consumer for BudgetBuddy is those of low/medium disposable income as they're
the most likely to desire a budget, and these are the people in the highest risk of debt so
need a budget most. (Wagmiller, 2003)
As the target customer is those with a low disposable income, a key need some thing
making them stick to the budget. Budgeting is only effective if people follow it, without
following the budget the debt problem will only worsen, they need a product like
BudgetBuddy that will keep them on track. (BB&T, n.d.)
The target customers are also often under huge amounts of stress(Poverty and Social
Exclusion, n.d.). Because of this these customers need an automated, fast, simple solution
to their budgeting problem that requires little personal involvement.


3.4 The Product and Service
BudgetBuddy has specific categories for possible purchases selected by the user, food,
power, and clothes for example. A connected bank account is used to allocate money into
the categories on a weekly/monthly bases. BudgetBuddy secures this money in each
category meaning it cannot be spent on other products, for example money in the food
category can only be spent on food. BudgetBuddy makes sure they don't over spend and will
stick to budget, meaning theyll always have money for essentials
BudgetBuddy will also satisfy the need for a quick and simple solution to budgeting. As a
bank account is connected to the app, purchases are tracked automatically so the user can
view their budget in real time. The automation removes the hassle of traditional budgets and
make its incredibly user-friendly. It means they know what they can afford without working it
out themselves, satisfying the need for speed and simplicity.
3.5 Suppliers and Partners
Potential suppliers for BudgetBuddy include an app developer, such as Smudge (Smudge,
n.d.), and a Web-Server, such as Hostgator. The chosen app developer would create and
design the app for BudgetBuddy so it was professional and user-friendly. The Web-Server
would host a website tie-in for the app incase users want to view their budget on a PC
Potential partners could include a bank, such as ANZ, and iTunes. Partnership with a bank
such as ANZ would give credibility to the app. It would also create an easy link between
transferring money in the categories and connecting with other accounts the user may want
connected. In return the ANZ would receive free advertising and possibly new customers.
iTunes would provide a place where everyone has the ability to download the app and would
give the app exposer to a key market place. In return Apple would receive 30% of app sale
revenue for promoting and dealing with sales admin (Buskirk, 2013).

3.6 Strategy: Cost Leadership
BudgetBuddy would target its key consumers, those with lower/medium income, but also the
rest of the population to try and help anyone who suffers from debt, resulting in a broad
competitive strategy.


As there is so much competition within the industry a low cost strategy will be the most
effective to try and gain market share. A low cost strategy will aim to try and entice users to
download BudgetBuddy compared to more expensive budgeting apps.
The overall stratefy is therefore Cost Leadership
3.7 Value Chain Activity: Service after the Sale
The most important value chain activity for this business is Service after the Sale
BudgetBuddy is trying to rid world the of debt so its essential that people download the app,
but most importantly continue to use the app so they can save money and help possible debt
problems. Continued service after the sale is key to try and retain current users but also
attract new ones who have heard of the great service. This also links to the cost leadership
strategy. Focusing on amazing after sale service will be very attractive for a broad consumer
strategy as service is something they will all look for, and the low cost of the app is further
3.8 Business Processes
3.8.1. USER MONI TERING PROCESS This business process makes sure the user is sticking to
their budget and is aware their spending by tracking their purchases and alerting them if
theyre in danger of over spending. The business would use their IT department would use
the spending comparison system and spending forecast system to rely informative and
useful information during the process to the user about their budget.
3.8.2. CUSTOMER FEEDBACK PROCESS This process makes sure that the users have a
chance to offer feedback, a key part of service after the sale, to the business. The process
makes it easy how to submit feedback, and then through IT submits the feedback to the
appropriate department as well as the users information so they can reply when received.

Business Process 1



Business Process 2




3.9 Functionalities
Records user spending
Alerts the user if in danger of breaking their budget
Collects feedback
Provides support details
3.10 Systems

3.10. 1. SPENDING COMPARI SON SYSTEM This system compares the spending paterns of the
user on a week-by-week or month-by-month bases to determine if the user is following
their usual trends for spending. The system supports the alert function as it provides the
app with the information if its nessesary to display an alert if overspending is determined. It
supports the vision of BudgetBuddy by making sure each user stays to budget to help create
a debt free world.
3.10. 2. SPENDING FORECAST SYSTEM This system uses user spending paterns that have
been collected, incorporating the recording user spending function, to dertermin a possible
spending total for a week/month if current spending trends continue. Its a useful tool for
those in danger of breaking budget to see how much they need to cut back. This ensures
they wont run into debt if the advise is followed and helps to create a debt free world.
3.10. 3. FEEDBACK SUBMI SSI ON SYSTEM Feedback that is submitted through the app will be
sent to either the development team or customer service team, using the collection of
feedback function. This system ensures that all feeback reaches the correct department so
compalints can be delt with or possible emprovements considered. This will ensure
continued use of the app as people will feel satified that the app will improve or theyre
cared about as users, helping to make sure they stick to a program helping them become
debt free.


3.11. Summary Table: Value Chain to Systems

Value Chain
Processes Functionalities Specific Information
Broad Information

1. User
1. Records user spending

2. Alerts if the user is in danger of breaking
their budget
Spending Comparison

Spending Forecast System
Transaction processing
cheese system

Transaction processing
cheese system
2. Customer
1. Collects user feedback

2. Provides support details
Feedback Submission System

Customer relationship
management system


BugetBuddy is an effective, innovative and simple way for people to manage their money.
Debt is an increasing problem and BudgetBuddy will fix that through innovative and effective
ideas. By using IT, BudgetBuddy will be able to create an easy to use app that will allow
anyone to budget with ease, while making sure they dont overspend. IT is crucial in
ensuring the money is correctly allocated and can be used for the purchase of items. As a
result people will be able to manage their money and be able to avoid debt that unfortunately
results for those who dont, creating a better financial situation for society.


1. Babauta, L. (2007, May 30). 10 Ways to Simplify Your Budget. zenhabits
RSS. Retrieved May 25, 2014, from

2. BB&T. (n.d.). The Importance of a Budget. The Importance of a Budget.
Retrieved May 25, 2014, from

3. Buskirk, E. V. (2013, August 8). Apple Takes 30 Percent of In-App
Subscriptions; Some Developers Are Fine With That. Retrieved
May 25, 2014, from

4. Dew Mobility Blog. (n.d.). Dew Mobility Blog. Retrieved May 25, 2014,

5. Gordon, J. (2009, August 11). Smashing Magazine. Smashing Magazine.
Retrieved May 24, 2014, from

6. Koploy, M. (2014, May 24). Compare Budgeting & Forecasting Software.
Budgeting & Forecasting Software. Retrieved May 25, 2014, from

7. Poverty and Social Exclusion. (n.d.). Parents living on a low income are
under stress. Poverty and Social Exclusion. Retrieved May 25, 2014, from
8. Smudge. (n.d.). SMUDGE. Smudge. Retrieved May 25, 2014, from



9. Wagmiller, R. (2003, October). Debt and Assets Among Low-Income
Families. National Center for Children in Poverty. Retrieved May 25, 2014,

10. Zoomer. (2014, May 5). Best Apps For Your Budget - Everything Zoomer.
Everything Zoomer. Retrieved May 25, 2014, from