INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS SECTION2014

NameGligor Kostovski

NetIDgkos450

Group Number:265

Website Link:http://infosys1102014s1group265.blogspot.co.nz/

Tutorial DetailsTutor:Day:Time:

Olivia ShultzThursday9am

Time Spent on Assignment:?Word Count:1796

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Q-down as a Start-up INTRODUCTIONThe problem is public queuing in shops. This phenomenon of queuing in shops and retail stores is a prevalent problem because it not only affects all shoppers but also eats away their valuable time. My solution is to sponsor certain retail shops by installing a thermal sensor people count that counts the number of people in a store in real time. This data is captured in the sensor and then transmitted to a smart-device application (Q-down) that provides the number of people in a store through periodic updates. The user of the Q-down app will then be able to decide whether to enter the store in a particular time or not. 3. BUSINESS SECTION 3.1 Vision To provide the greatest timekeeping tool for humans by developing a sixth sense - unprecedented awareness! 3.2 Industry Analysis: Mobile Retail Monitoring IndustryThis incorporates the retail monitoring industry and the mobile application industry. NOTE: there are variations in product offerings; Q-down acts as a public-queuing monitor, others provide submissions to be in a queue. Force:High/Low:Justification:

Buyer power:ModerateAlthough not many retail monitoring apps are around, there are an increasing number of apps (mostly free) that try to solve the problem of shop queuing by allowing customers to submit to be in a virtual queue (Null, 2013).

Supplier power: (2 products SENSOR & APPLICATION)1.) Low & 2.) Low 1.) There are an increasing number of suppliers that offer people-counting technology. Many variations exist, for example company Irisys provides a business-tailored program (InfraRed Integrated Systems Ltd., 2014), whereas SenSources products provide simple people-queuing technology (SenSource Inc., 2013).2.) To create the app will mainly require a platform developer (i.e. Platforms are iPhone, Android, Blackberry, etc.). The number of these developers has increased dramatically from 2009 (Shweta Jain, 2011).

Threat of new entrants:HighEstablished app stores are difficult to get into (e.g. Apple, Google). However the MobileRoadie program allows users to build an app with little cost and time used. Therefore building a retail monitoring app is becoming easier (MobileRoadie, 2013).

Threat of substitutes:HighThere is a large number of ticketing kiosks that reduce the queuing phenomena. Substitutes include website queuing submissions and the use of physical tickets supported by a digital projection of who is up next (Queue Kiosk, n.d.).

Rivalry among existing competitors:HighA source says that Android apps between the years 2009-2011 have grown in sale just over 860% year-and-out. Due to this intense competition it also has meant that the average selling price of the apps have decreased, many becoming free (Shweta Jain, 2011).

Overall attractiveness of the industry: Building the product is becoming easier with the abundance of resources that are becoming cheaper. I.e. making the app and hiring a platform developer is becoming cheaper. However one major difficulty exists; mobile app prices are sinking dramatically. Recommendation: Profitable if you can differentiate your app with a variety of features with different value dimensions to it (i.e. broaden your market by offering many different types of features). 3.3 Customers and their needsThe main target market is shoppers who currently have a smart-device; therefore customers would usually range from ages 10-40yrs. However the market would grow as: (1) everybody shops; (2) new generations will become more familiar with the functionalities of smart-devices. One of the most significant needs of a shopper is to have a short queuing time (Stone, 2012). According to M.I.T researcher Richard Larson, world expert on the psychology of lines, occupied time feels shorter than unoccupied time (Stone, 2012, para. 4). Another significant need for these customers is the functionality component of an app. If an app doesnt work properly, negative reviews are posted and can easily make a potential customer avoid downloading it. E.g. Qender Mobile Queue app (Apple Inc., 2014). Such persuasion by reviews is extremely effective, especially due to the fact that most retail queuing apps are free with no switching costs (Shweta Jain, 2011) therefore a customer would value the apps functionality very highly. 3.4 The Product and Service Problem 1 solution: where shoppers have access to the number of customers in a store with Q-down; theyre effectively solving the problem of queuing by choosing not to enter a shop when its too busy. Problem 2 solution: to reduce the chances of functionality failure of the app, there are two aspects to look into:#1: People-count sensor Avoid battery-powered sensors as batteries have lives. Instead install wired-sensors powered by the retail stores electricity. Avoidable distance from human interaction. Good quality sensor.#2: Application - Hire good quality platform developers.

3.5 Suppliers and PartnersSuppliers:#1: SenSource: providers for standard people-counting sensors.They offer sensors that once installed can accurately record the number of people that enter and exit a store. However the majority of their products only provide basic real-time counting functions (SenSource Inc., 2013).#2: Irisys IRC303X Dual View: providers for sophisticated people-counting sensors. Their sensors not only give a real-time people-count, but can also provide a digital projection of what the customers movements are around a store. I.e. Such projection can then be viewed from a Q-down user, analysing which part of the store the customers are attracted to the most (InfraRed Integrated Systems Ltd., 2014).

Figure1: IRC303X Dual View (Source: InfraRed Integrated Systems Ltd., 2014)Partners:#1: Westfield shopping centres Your benefit: You must have people-counting sensors in specific stores. Therefore you have to have a number of retail outlets that would sponsor the installation of the sensor in their shop. Their benefit: If the majority of usual shoppers used Q-down it would mean that shoppers would enter their desired store for shopping at a time where queuing is minimal. This would mean that large populations in stores would decrease, allowing for Westfield security guards/cameras an easier way for detecting shoplifting. #2: Retail store managers Your benefit: The increased chance of head-office sponsoring the people-counting sensors in their shops. Their benefit: When managers use Q-down, especially HR managers, they could have averages of the number of customers in shops in proximate areas. This would allow HR managers to allocate the optimal staff on the floor during the day. 3.6 Strategy: Cost LeadershipCompetitive Scope: Broad marketThe target customers consist of two components: (1) theyre shoppers; (2) they have a smart-device. This market is broad as nearly everyone is a shopper, and if not shoppers themselves they could still provide information to their friends/family. i.e. a 13y/o telling their mother where the least busy shops are. Adding onto this, the number of smart-device users is increasing dramatically (Shweta Jain, 2011).Cost Strategy: Low costIs low because with reference to 3.2; competition is high. The main reason for this is because the price of retail monitoring apps (and apps in general) is decreasing; and this is ultimately due to the fact that the industry is becoming cheaper and easier to enter. The overall strategy is therefore Cost Leadership.3.7 Value Chain Activity: Research and Development (R&D)The most important value chain activity for this business is R&D.As the industry is easy to enter, and this being a testament to the cost-leadership strategy, price competition among competitors is fierce. Therefore in order to provide a competitive strategy in this industry the company must differentiate their product by constantly releasing news features and dimensions of value in the app to their customers. R&D links with the vision segment of developing unprecedented awareness as for something to be unprecedented would mean to provide unrivalled awareness for our customers, and something the competitors cant match.

3.8 Business Processes3.8.1. Developing feature process - This process is very important because to develop a new feature on an app will require an error-free and valuable feedback process from their suppliers on feasibility; as well as an emphasis on the speed required in making features regularly; and the minimal steps are a testament to that.

3.8.2. Beta-testing process - This process is critical because prototyping a feature will require a heavy emphasis on not only the composition of the test-candidates, but also reliance on the values and needs that their potential customers have on new app features. Therefore this process would rely greatly on two major steps: (1) customer feedback; (2) redesign of app if major faults are evident.

3.9 Functionalities 3.9.1. developing-feature process MobileRoadie app/feature creation programme. Software capable of detecting unknown patents. 3.9.2. beta-testing process Statistical software categorising and showing popularity of specific feedback. Software that compares predicted customer necessities against real necessities (after feedback).3.10 Systems

3.10.1. patent-detection system - This system supports the functionality of detecting established patents in regards to app features that legally belong to a competitor. Such a system is of great value to the company as detections will alter the decisional requirements and strategies of the company in the form of redesigning an app feature that avoids copying an established patent. 3.10.2. feedback-monitoring system - This system supports the categorising of feedback functionality which is of critical value to the redesigning and manufacturing of Beta step as it would focus on categorising negative feedback and then the system would determine which specific feedbacks are important enough to consider redesigning the feature given the quantity of complaints. This monitoring system is committed to the vision segment of providing the greatest timekeeping tool. 3.10.3. software-comparison system - This system, also known as WinMerge, compares folders and files in a visual format that supports the functionality of comparing the prediction of customer needs with reality (WinMerge, n.d.). Similar to the patent-detection system, this system would alter the decisional requirements of the company in the form of reconsidering what values/needs their customers really have and then projecting this in their next beta product.

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3.11. Summary Table: Value Chain to Systems

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

Research & Development1. Developing feature process1. MobileRoadie app/feature programe.

2. Software capable of detecting unkown patents. Application development system

Patent-detection systemDecision support system

Decision support system

2. Beta-testing process1. Statistical software categorising and showing popularity of specific feedback.

2. Software that compares predicted customer necessities against real necessities (after feedback).Feedback-monitoring system

Software-comparison systemCustomer relationship management system

Collaboration system

CONCLUSION To conclude, Q-down competes in the mobile retail monitoring industry and is unique as it combines a people-counting technology to a smart-device application. If used by rational consumers, it would decrease the problem of shop queuing by allowing shoppers to allocate their time accordingly with respect to the busy trade hours. The value in IT is evident when the people-count data is captured in the sensor and then transmitted to a smart-device that would provide the number of people in a store through periodic updates.REFERENCES

1. Christopher Null. (2013). Mobile queuing app promises to take the pain out of waiting in line. Retrieved from http://www.pcworld.com/article/2044243/mobile-queuing-app-promises-to-take-the-pain-out-of-waiting-in-line.html 2. InfraRed Integrated Systems Ltd. (2014). People Counting. Retrieved from http://www.irisys.co.uk/people-counting/ 3. SenSource Inc. (2013). People Counters. Retrieved from http://www.sensourceinc.com/peoplecounters.htm 4. Shweta Jain. (2011). Mobile applications. Retrieved from http://www.slideshare.net/shwetaj/mobile-applications-7643425 5. MobileRoadie. (2013). Homepage. Retrieved from http://mobileroadie.com/ 6. Queue Kiosk: ST-PD series. (n.d.) Retrieved from http://www.isantai.com/down/Queue%20Kiosk.pdf 7. Alex Stone. (2012). Why waiting is torture. Retrieved from http://www.nytimes.com/2012/08/19/opinion/sunday/why-waiting-in-line-is-torture.html?pagewanted=all&_r=1& 8. Apple Inc. (2014). Qender Mobile Queue. Retrieved from https://itunes.apple.com/us/app/qender-mobile-queue/id515885492?mt=8 9. WinMerge. (n.d.). What is WinMerge? Retrieved from http://winmerge.org/ 10. InfraRed Integrated Systems Ltd. (2014). IRC303X Dual View YouTube video (screenshot). Retrieved from https://www.youtube.com/watch?v=BiTuFXuFoPY

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START

Formally model and design a new app feature via diagrams

Send designs to platform designers

Does the design require transformations/upgrades to the counting-sensor?

Initial development done (END)

No

Send designs of feature to supplier of sensor (SenSource)

Are transformations to sensors possible?

Yes

No

Design and technical support department

Application design system

START

Test-candidate recruitment

Beta Q-down distribution

Collect feedback

Evaluate feedback from test-candidates

Does feedback require large adjustments/redesigning to the Beta Q-down product?

Prototype (Beta) process complete (END)

No

Redesign and manufacture Beta

Yes