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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Luo Xiao
NetID xluo865
Group Number: 262
Website Link: http://infosys1102014s1group262.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Kit-Wah Wednesday 1pm
Time Spent on
Assignment:
16 hours Word Count: 1632

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INDIVIDUAL REPORT - DELIBERABLE 2
INTRODUCTION
More and more people today tend to drive to work all over the world as the growth of
economics and cars become widely affordable. Nationally, motor cars were the main
means of travel to work, with approximately two-thirds of the employed population listing
this as their main means of travel to work on census day 2006 (Statistics NZ, 2006).
However, cars are like sardines in the peak time and people cant easily find parking lots,
then serious traffic jams and air pollution would be caused by it. Therefore, we need
immediate car parks information to avoid wasting time and improve efficiency.
3. BUSINESS SECTION
3.1 Vision
Being the most reliable car park guide by providing the most quickly and accurately
immediate car park information.
3.2 Industry Analysis
Industry: Smartphone navigation application industry
Force: High/Low: Justification:
Buyer power: High There are many choices of navigation applications
in smartphone stores, and most of them are free.
Supplier power: High The most accurate parking lots information must
be provided by the parking lots computer, so
each parking lot has control over its data. We
have to negotiate with them in order to get
access to their systems.

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Threat of new entrants: High The barrier of entry for the transportation mobile
application industry is low, because it requires a
low set up cost for similar application. Sara
Angeles (2012) estimated that a simple app only
costs about $1500 to $5000 and an app that
actually provides some value to customers costs
about $30000 to $150000.
Threat of substitutes: Low People have plenty of choices to search parking
lots such as using paper maps and in-car
navigation systems, but none of these substitutes
are as convenient as mobile navigation
nowadays. For example, Naughton, K (2013)
stated that most in-car navigation systems are
not connected to the Wed, and it is expensive to
update the maps.
Rivalry among existing
competitors:
High There are many competitiors in the mobile
navigation application industry, and some of
them are already widely accepted by people such
as Google maps and Iphone navigation apps.
Overall attractiveness of the industry: According to the 5 forces results, it seems that the
overall attractiveness is low as 4 of them indicate high threat and its hard to imagine how
to make profit. However, these kinds of application only need a low set up cost and it can
actually earn revenues because of large user-base.
3.3 Customers and Thei r Needs
According to the functions of our product, our potential customers can be divided into two
types. The first type of potential customer is all the New Zealand citizens who drive cars,
especially, the people who work in the CBD and prefer to drive to their workplaces every

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day. Wasting too much time on finding car parks could lead to managers' dissatisfaction or
deducting of wages.
The second type of potential customers is commercial merchants like restaurants, hotels,
shopping malls, supermarkets and so on who would like to post their advertisements on our
searching interfaces. As our products are widely used by a large number of customers,
commercial ads could be effectively spread.
3.4 The Product and Service
Immediate car park information can be easily accessed by download our app from
smartphone store. When users locate their destinations in, this software will link to every
nearby car parks' computer systems which can get the information of available spaces at
any time, and it will also link to its internet database which can tell how many people are
tracking the same car park as you and count the time for you and your competitors to get to
that car park. Therefore, users need not to worry about losing space because of the other
competitors (ie. people who arrive at the car park before you), they can choose the second
best alternative car park by comparing with their competitors.
3.5 Suppliers and Partners
As our product is heavily based on the data and information provided by parking lots
systems, our main information suppliers would be the parking lots.
Besides, we are preferred to use the existed GPS tools and technologies as our basic locating
function, so the existed apps technologies such as Google Maps could be one of our
suppliers.
The advertising agency/company can be considered as one of our important partners. If we
outsource our advertising information database from advertising agency, they can have one
more platform to show the ads and our products utility can be improved as well; Among
the most widely used navigation apps are ones that allow you to find products and services
in your vicinity (Navigation iPhone Apps Review, 2014).

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The other partners could be the smartphone application selling platforms like App Store and
Android Store, as our product needs to be sold in well-known App stores and they can
attract more users to enter their stores.
3.6 Strategy
We are going to focus a broad market and based on the results of Potter 5 forces, we had
better to choose cost leadership as our strategy as buyer power is too high. There are many
navigation apps in the industry, we must set a low price to attract as many customers as
possible. Therefore, the overall strategy is therefore Cost Leadership.
3.7 Value Chain Activity
Technology development (and R&D) is our essential value chain activity as our vision is to
provide the most quickly and accurately information. On one hand, We need to frequently
receive and update immediate data and deliver them to users, so our processes is heavily
relied on information technologies. On the other hand, our overall strategy is cost
leadership, as we have plenty of competitors and new rivals can also easily enter the
industry. Smartphone apps could be easily copied by the others, so our competitive
advantage which survives us would be the first-mover advantage. Therefore, we have to
keep our customers happy and familiar with it by improving technologies like searching
speed, so that customer loyalty could be created.
3.8 Business Processes
3.8.1. THE BEST PARKING LOTS SEARCHING PROCESS -
This process is in order to help the user A to find the best parking lots by getting access to
parking lots systems around the destination and determine which parking lot has higher
possibility that the user can get available spaces.

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3.8.2. ADVERTISING APPLYING PROCESS --This process is to provide information about nearby
meals, entertainments after considering (e.g. the time of arriving & the main functions of
the area), so that users potential demands can be meet. For instance, if a user goes to CBD
at 11am, the system will provide some restaurant around the parking lot because the user
tends to have demand for food at that time.
Note: The advertising information database we could outsource from our partner---
advertising agency.


3.9 Functionalities
3.9.1. THE BEST PARKING LOT SEARCHING PROCESS

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Help user to find a parking lots that have enough remaining spaces.
Guide users to go to the parking lot.
3.9.2. ADVERTISING APPLYING PROCESS
Provide additional suitable nearby information for user.
Guide users to go to the nearby they are interested in.
3.10 Systems

3.10. 1. REACHING POSSI BILI TY COMPUTING SYSTEM - This system is response for computing
the possibilities the user can arrive the parking lot with enough spaces. It will link to GPS to
compare with nearby users who are going to the same parking lot, and the real time
parking space computing system below will compute how many remaining spaces does the
parking lot has.
3.10. 2. REAL TI ME PARKI NG SPACE COMPUTING SYSTEM - This system is mainly response for
compute the real time remaining parking space. It will link to the systems in each parking
lots and compute the remaining space and then update our database as well as update the
number of remaining spaces shows to the user.
3.10. 3. SUITABLE ADVERTI SING EVALUATI ON SYSTEM--
This system can evaluate whether the advertising information is suitable and
meet the potential demand of users by considering the time and areas
characteri stics that the users chose.

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3.11. Summary Tabl e: Val ue Chai n to Systems

Value Chain
Activity
Processes Functionalities Specific Information
System(s)
Broad Information
System(s)

Technology
development
(and R&D)
1. The best
parking lot
searching
process
1. Help user to find a parking lots that
have enough remaining spaces.
2. Guide users to go to the parking lot.

Reaching possibility
computing system

Real time parking space
computing system
Decision support
system(DSS)
2. Advertising
applying process
1. Provide additional suitable nearby
information for user.
2. Guide users to go to the nearby they
are interested in.

Suitable advertising
evaluation system
Customer relationship
management
system(CRM)

Decision support
system(DSS)

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CONCLUSION
Our start-up business is to provide an application that can predict the best choice of car park
by providing the most quickly and accurately information. Therefore, it can not only help
people improve efficiency, but also be able to reduce the traffic stress and air pollution by
decreasing the average parking lots searching time. Ultimately, we cannot say our product is
a great creation as navigation tools like Google maps have already being well-known for
many years, but we are trying to redefine a navigation application and make it the most
customer-oriented.
REFERENCES

1. Statistics NZ. (2006). Commuting Patterns in New Zealand: 19962006. Retrieved
from:http://www.stats.govt.nz/browse_for_stats/people_and_communities/Geogra
phic-areas/commuting-patterns-in-nz-1996-2006/car-bus-bike-or-train.aspx

2. Navigation iPhone Apps Review. (2014). Navigation Iphone Apps-Top Ten Reviews.
Retrived from: http://iphone-apps.toptenreviews.com/navigation/

3. Sara Angeles. (2012, December 27). How Much Does it Cost to Make an App?: An
Infographic. Retrived from: http://www.ideatoappster.com/how-much-does-it-cost-
to-make-an-app-an-infographic/

4. Naughton, K. (2013). Recalculating Navigation Needs. Bloomberg Businessweek,
(4340), 35-36. Retrived from: Business Source Premier Database