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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Andrew Student
NetID Ejoh519
Group Number: 083
Website Link:
Tutorial Details
Tutor: Day: Time:
Olivia Schlutz-Duffy Tuesday 9am
Time Spent on
Assignment:
45 hours Word Count: 1608

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DRIVE SMART
INTRODUCTION
Starting with New Zealand, Drive Smart brings modern technology systems and the
environment into harmony; ingeniously crafting a downloadable application to any
smartphone, which connects to a small device installed free of charge to any vehicle. This
application allows customers to pre-pay for their petrol online, informs drivers on how
much petrol they are using, carbon emmissions, and how much it is costing them, -all in
real-time, as they drive. Drive Smart removes the shadow of current process systems and
strategies which simply do not benefit customers enough. It is time to experience total
customer satisfaction, through Drive Smart!
3. BUSINESS SECTION
3.1 Vision
To save the environment with technology, through total customer satisfaction.
3.2 Industry Analysis:
Industry: App (Applications) Industry: Industry of downloadable apps to
smartphones/capable devices which may be bought by end consumers.
Force: High/Low: Justification:
Buyer power: High Selection and differentiation between apps are
high with over one million apps downloadable on
the apple app store alone (Neumayr. 2014. para
5). Buyer power is high due to many substitutes
on the market, Apple records showing over
10billion apps were downloaded in only two and
a half years (Schille. Muller. 2011. para. 2).

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Supplier power: Low Incredibly competitive industry, many entrants
and developers of mobile apps. Suppliers face
strict obligations, restrictions and guidelines and
compete against many solutions and software
producers (Hammershoj. 2010)
Threat of new entrants: High The threat of new entrants is high due to the fact
any individual can submit an app to an App Store.
High volume in customers and thus potential
profit poses high threat for profit hungry app
developers to enter this industry (Moller et al.,
2012).
Threat of substitutes: High With over one million mobile applications
uploaded to a single app platform of many (and
growing) each year, threat of substitutes is high.
(Young. 2014).
Rivalry among existing
competitors:
High Due to high volume of customers, the app
industry is very competitive as companies must
fight for market share against many app
developers in such a crowded industry
(Ravindranath et al. 2012).
Overall attractiveness of the industry: Upon industry analysis, over all attractiveness of the
industry is low as all five forces indicate negative characteristics to this industry. Despite
this, it must not be ignored that the app industrys continual economic success and growth
proves as testimony for why it is attractive. High competition, customer volume, and profit
exhibit the value of this industry.
3.3 Customers and Thei r Needs

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Drive Smart targets customers who own a debit/credit card, and drive. According to the
New Zealand Government Transport Agency, New Zealands rate of vehicle ownership sits at
0.75 vehicles per person, risen from 0.69 rate of car ownership per person in 2002 (New
Zealand Transport Agency, 2011). Drive Smart also takes into consideration that electronic
spending is a more efficient means to pay for a service. Liz MacPherson, New Zealand
government statistician stating that electronic card transactions increased by one percent in
December 2013 (MacPherson. 2014). Thus forth, customers require more efficient ways to
drive, and pay due to Increased drivers, increased expenses, and traffic at petrol stations.
With increased prices for petroleum due to external international price increases (Ministry
of Economic Development. 2013), our customers require a cheaper, faster, more efficient
driving experience as every householder has limited means (time, knowledge, revenue).
3.4 The Product and Service
Drive Smart reduces traffic at petrol stations by removing the hassle of physically walking
to a petrol station counter. Instead customers pre-pay for their petrol online via a
downloadable mobile application. Simply key in a validation code at the petrol pump, and
an electronic reciept will be sent to the customers registered email address while their
petrol tank is filled. Drive Smart recognizes and that rising petrol prices are cause for
concern. Our app allows drivers to track how much petrol is used at each speed, carbon
emmissions as they drive all from their mobile phone via an in-car installed device signal,
while also reducing carbon emmissions, which benefits the environment.
3.5 Suppliers and Partners
Two partners of Drive Smart are Apple, and Google. Both companies have platforms which
house a multitude of apps, as an easy access point for customers. Both companies are
partners of Drive Smart as both Apple, and Google have mutual business agreements to
work with Drive Smart to benefit one another through integration. Two suppliers of Drive
Smart are businesses which help make the finished product, such as mobile app software
engineers hired by Drive Smart to create the app, and suppliers of raw materials such as
metal making business which may be hired to manufacture the device installed to vehicles.

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3.6 Strategy: Differentiation
Differentiation strategy with a broad market competitive scope and high cost cost strategy
has been selected. The mobile application (app) industry is very broad, meeting many end
customers (Schille. Muller. 2011, para. 2). Our selected target market; vehicle drivers with
credit/debit cards is also broad, thus it is most appropriate to utilize differentiation in order
to create increased value, capturing customers in such a competitive market where price
competition is not suitable.
The overall strategy is Broad market differentiation, high cost strategy.
3.7 Value Chain Activity: Market and sell the product or service.
The most important value chain activity for this business is Market and sell the product or
service.
With over 15,000 apps sent in on average each week, it becomes difficult for applications to
be noticed, regardless of price or level of innovation. They get lost among the many apps on
platforms such as Apples App store (Woolridge & Schniede. 2011). The life span and success
of the Drive Smart app relies heavily on a long term marketing plan, set in place to ensure
that Drive Smart maintains sales (Woolridge & Schnieder. 2011).
3.8 Marketing and Sales Business Process
3.8.1. ATTRACTING CUSTOMERS PROCESS Attracting customers is imperitive to a mobile
applications success. Drive Smart must first identify their overall business objective. From
here, they must then identify the characteristics of their target market through research.
The next step is processing of the collected data, to produce a target market profile of the
target markets characteristics (likes, dislikes, traits etc.). Next, identify how the business
may best attract their target market; shaping product, placement, price, and promotional
strategies around the target markets profile. After these strategies are implemented, the
result must be compared to the business vision and target market profile. If they match,
and compliment one another, customer attraction has been created. If not, this process
must be repeated untill it finally does.

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ATTRACTING CUSTOMERS BUSINESS PROCESS:

3.8.2. PROCESSING SALES PROCESS - The process by which Drive Smart processes its sales is
simple. Assuming the application will already be on the platform at questions system, for
example Apples App Store, the first step is for a customer to buy the app. This is done
electronically via their Itunes account with Apple. Once this transaction is accepted, a signal
is sent to Apple, which responds by automatically sending a signal, downloading the app to
the customers mobile phone from its database system. While this occurs, Apples
technology system will source Drive Smarts account with Apple and automatically allocate
a portion of the profit made from the sale. The sales process is thus complete.

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PROCESSING SALES MODEL



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3.9 Functionalities
3.9.1. ATTRACTING CUSTOMERS PROCESS
Catered to the target market, promotional activity undertaken allows the
customer to engage with our product.
Ensures that every strategy understaken complies with the overall business
objective in order to continually meet the business vision statement by
adding value through differentiation.
3.9.2. PROCESSING SALES PROCESS
Reduces time taken to carry out the sale through the use of partnered
platforms who are efficient in this.
Creates a straightforward, sale process for both the consumer and company,
increases accessibility.
3.10 Systems

3.10. 1. TRANSACTION PROCESS SYSTEM Efficiently stores and changes data as according to
when transactions occur within a business. Technology based, automatic transaction
systems take away risk of human error and reduce the time needed to complete
transactions, staying true to the vision statement and outlined functionalities.
3.10. 2 STRATEGI C LEVEL SYSTEM- Increases differentiation and efficiency by allowing for the
business to effectively organize, process, store and utilize information so that a product may
be increasingly competitive, simply because the product produced is soley shaped around
its target market, which in turn shall deliver total customer satisfaction.
3.10. 3. DECI SI ON SUPPORTSYSTEM Allows companies to ensure they make the right choices
with regards to their product and overall delivery to customers by providing strategies for
important decision making. This increases organization and in turn increases the quality and
efficiency.

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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 or
service.
1. Attracting
customers
process.
1. Increases value by shaping a product/service
around a target market.

2. Continually adds value by adhering to the
vision statement through extensive research
processes.
Strategic level system.

Collaboration System

Enterprise Resource
Planning system
2. Processing
sales process.
1. Increases efficiency by cutting down
processing times for transactions.

2. Increases customer accessibility to the
product with technology dominated,
straightforward transaction processes.
Transaction process system.

Transaction processing
system

Collaboration System


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CONCLUSION
Drive Smart is an innovative application which benefits the customer, as well as the earth.
With seamless, extremely high efficiency and delivery of value, This mobile application is set
to revolutionize the transactional process of filling up petrol, with many added benefits.
Through the utilization of technology and information systems, consistent value is always
performed. The efficiency is faultless, both the customer, and the earth are left victorious.
REFERENCES


1. Hammershoj. A. (2010). Challenges For Mobile Application Development.Intelligence
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th
International Conference on. Pp. 1-8.
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2. Macpherson. L (2014.). Electronic Card Transactions: December 2013. Retrieved from
http://www.stats.govt.nz/browse_for_stats/businesses/business_characteristics/Ele
ctronicCardTransactions_HOTPDec13.aspx

3. Ministry of Economic Development. (2013.) NewZealand Petrol Review. Retrieved
from http://www.med.govt.nz/sectors-industries/energy/liquid-fuel-
market/importer-margin-review.


4. Muller. T. (2011.). Apples App Store Downloads Top 10 Billion. Retrieved from
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5. Neumayr. T. (2014.). App Store Sales Top $10 Billion in 2013. Retrieved From
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2013.html?sr=hotnews.rss

6. New Zealand Transport Agency. (2011.) Resource 1 Facts and Figures. Travel
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planning-toolkit/docs/resource-1-facts-and-figures.pdf.

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9. Wooldridge.D. Schneider. M. (2011). The Business of Iphone and Ipad App
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