GiveToHelp is an app that aims to increase donations to charities by providing an easy and secure way for people to donate through their phones. The app would allow users to browse different charities and make donations directly from their bank accounts. The summary seeks to adopt a cost leadership strategy by making the basic app free to download and earn revenue through upgrades and ads. The key business process is marketing and advertising the app to raise awareness and get more people donating through the app.
GiveToHelp is an app that aims to increase donations to charities by providing an easy and secure way for people to donate through their phones. The app would allow users to browse different charities and make donations directly from their bank accounts. The summary seeks to adopt a cost leadership strategy by making the basic app free to download and earn revenue through upgrades and ads. The key business process is marketing and advertising the app to raise awareness and get more people donating through the app.
GiveToHelp is an app that aims to increase donations to charities by providing an easy and secure way for people to donate through their phones. The app would allow users to browse different charities and make donations directly from their bank accounts. The summary seeks to adopt a cost leadership strategy by making the basic app free to download and earn revenue through upgrades and ads. The key business process is marketing and advertising the app to raise awareness and get more people donating through the app.
Name Gabrielle Wallace NetID 2714875 Group Number: 162 Website Link: http://infosys1102014s2group162.blogspot.co.nz/p/gabrielle- wallace-d2.html Tutorial Details Tutor: Day: Time: Thursday 9am Time Spent on Assignment: 28 hours Word Count:
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2 HOW I CAN GET MORE PEOPLE TO DONATE TO CHARITIES? INTRODUCTION How many times have you been frustrated when charities ask you for spare change? Many phone callers or on-street collectors represent agencies who keep a portion of your donation. So how can I trust that my donation is being directly donated to the charity? My app, GiveToHelp provides a easy and user-friendly way of making charitable donations The lack of donations to charities has become an all encompassing problem internationally; according to a survey conducted by the Office of National Statistics, donations to charties fell by 20% during 2011/2012 worldwide. The following solution centres around a secure and accessible service for donations that caters to a technological customer base while encouraging donations. 3. BUSINESS SECTION 3.1 Vision GiveToHelps vision is to make a contribution to the world by creating an innovative and easy to use tool that would increase charitable donations. 3.2 Industry Anal ysis: Industry: Charitiable Donations Force: High/Low: Justification: Buyer power: High There is a lot of ways that individuals can donate. Buyers can choose whether or not they even choose to donate. Many buyers can be put off due to the accessibility, reliability and trustworthiness. Supplier power: Low There is little bargaining power of suppliers where there are numerous substitutes. There are a lot of alternative, there is a lot of choice of online technicians.
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3 Threat of new entrants: High The threat of substitutes is high because there are always new charities and causes being introduced. People can easily choose to donate to these charities with no barriers e.g. switching costs.There are limits to the barriers of entry including the cost and time needed. There are thousands of developers and it costs little to develop a profitable app; with Chuck Jones stating that on average there are 25,000 to 30,000 apps added every month. Threat of substitutes: High There are always new charities and an easy entry, increase the propensity for customers to switch to other alternatives. (Porter 2008) Rivalry among existing competitors: Low There is high intensity and consistent demand for donations within the industry. However there is no rivalry for donations because it is not a profitable industry that is attractive for businesses. Overall attractiveness of the industry: It is relatively attractive. It is a fast moving industry, with a phenomenal rate of business opportunities with mobile-app downloads going from seven billion downloads in 2009, to almost 50 billion in 2012, up 62% from a year ago according to Scott Austin. However the need for donations increasingly saturated, it does take considerable time and effort to enter the charitable market, there are a lot of barriers to overcome. 3.3 Customers and Their Needs Our business is non-profit centering around the needs of many charities. We have two main customer base; the first is aged between 16-50, they are individuals who are well educated on technology and use their cell-phones. My customer wants an app that allows the them to easily donate their money to a trustworthy charity of their choice. Given that as many as three in five New Zealanders own a smartphone (Pullar- Strecker, 2013) it
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4 gives a broad market of technology concious individuals.This service caters to these individuals because they can easily find out information about the charities with the comfort of knowing that their donation is going to make an difference. These little donations of $1 or $3 will make a impact while calling on online communities.
The second customer are businesses who are careful about their public image. To a buisness there is a lot of value in appearing to have social responsibility and community involvement. GiveToHelp will allow corporations to play an active role, this means they are able to point to how their company has made a difference to social problems. The compnay could use social media to spread the word and get recognition for their good deeds. The donations are also tax deductible therefore fulfilling their contributions to society. 3.4 The Product and Service GiveToHelp is a application that allows individuals to give charitable donations to their choice of charity. My product aims to connect individuals with charities via internet banking. My product centers around the needs of the charities, GiveToHelp has a list of potential charaties that they can donate to, this donation could be big or small. The customer can push on the charaties to see what their values are and where their money would go to. Once the customer has chosen who they would like to donate their money to, it would go to a screen showing a list of banks. Internet banking would be set up on the app so donations could be made. By allowing the customers the ability to chose who they would like to donate to we are low-cost which is an attractive selling point. GiveToHelp will satisfy the needs of my customers because it will allow technologically savvy individuals to donate with ease in their own time. For large scale businesses GiveToHelp will give companies a sense of corporagate social responsibility while fulfilling a need to help the community.
3.5 Suppliers and Partners Suppliers 1. Apple I would use the iTunes store to distribute GiveToHelp to the customer. iTunes would
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5 be a valuable supplier to their reliability and established name which would yield a competitive advantage. iTunes will easily be able to distribute the app with its large database widening potential customers from domestic users to international customers. Partners 1. Banks such as ANZ We would have a list of nationwide banks and our customers would choose their bank. Banks could be a great partner to promote the use of my GiveToHelp, it would make it more attractive and reliable. 2. Software developer The software developer would help to create an design thee app in an easy to understand manner. This is important because we need to feel that customers are able to safetly donate through internet banking.
3.6 Strategy: Cost leadership I will be inforcing a cost leadership strategy because it is a low cost product with a broad market, this will help to reach our vision. Scott Austin states free is king, our cost strategy released for free and will earn revenue by providing upgrades and placing advertisment. It will be aimed at a broad market due to the number of people with electronic devices. It will also be free, demonstrating a low cost strategy because we want all individuals including individuals from low socio-economic backgrounds to be able to donate. The overall strategy is therefore cost leadership 3.7 Value Chain Acti vity: Market and sell the product or service The most important value chain activity for this business is marketing and selling the product. Customers have a lot of choice of how they would like to donate their money, therefore promoting the product is crucial for the GiveToHelp to reach customers. Marketing would raise the awareness of my GiveToHelp and the need for donation which aligns with by businesss vision. By using marketing and selling the product as our value chain activity I am making the product more accessible and feasible to a broad market.
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6 3.8 Business Processes Sal es Order Managmeent process These business processes revolve around the market and selling of the GiveToHelp, this is because marketing will be the key to encourage technologically savvy customers to donate. Although development of the app is important I believe the marketing of the product will be the key to its success initially.
3.8.1. ADVERTISING PROCESS The advertising process is a key process in marketing and selling my product. The advertising process will advertise GiveToHelp. I would hope that by investing in an advertisments there would be many positive outcomes, including boosting donations and customer awarenes. This will be cricual for the success and future of GiveToHelp. A key issue that would be discussed in the advertising is that is GiveToHelp will use the funds donated properly.
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3.8.2. MARKET RESEARCH PROCESS WE WILL WANT TO DO MARKET RESEARCH ON OUR POTENTIAL CUSTOMERS. ALTHOUGH WE HAVE A GOOD IDEA THAT OUR DONATORS WILL BE TECHNOLOGICALLY SAVVY, MARKET RESEARCH WILL ENABLE GIVETOHELP TO GAIN A BETTER IDEA OF HOW TO TARGET AND ADVERTISE TO THESE CUSTOMERS.
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3.9 Functional iti es
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9 3.9.1. ADVERTISING PROCESS Customers identified Budgeting process 3.9.2. MARKETING RESEARCH PROCESS Collection of data and information Analyse data from market research 3.10 Systems To make a contribution to the world by creating an innovative, convient and easy to use tool that would increase the number of charitable donations. 3.10.1. MARKETING RESEARCH ANALYSIS SYSTEM - The marketing research system is market research and customer surveys to treat specific issues that customers are having. It incoporates functionalities and allows data to be combined and analyse trends. This will be key to target customers and to add growth and value to the business, it also centers around marketing and selling the product which is key to meeting the business targets. 3. 10. 2. DATA STORAGE SYSTEM- this system will support the huge amounts of data that will come from the marketing research. The data storage system is key to the vision of GiveToHelp, it will have information of customer information, this information will be key when meeting with potential partners like ANZ. By having a data storage system it will allow GiveToHelp the ability to easily analyse data. It will improve decision-making enabling a clearer picture of what customers want; it will help us to make a more convient and easy to use tool while also serving as a historical bench-mark. 3.10. 3. BUDGETING SYSTEMS- Budgeting is a key part to any business by calculating the profits and the expenses of the company. The budgeting system will predict the costs of the advertising campaign and assess the pay-offs and potential income and customer base that may come with it. By budgeting for the advertisment it will increase awareness of the app and the need to donate.
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10 3.11. Summary Table: Value Chai n to Systems
Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s)
Marketing and Sales 1. Advertising process 1. Customers identified
2. Budgeting process
Industry Analysis System
Budgeting System Workflow Management System
Collaboration Systems 2. Marketing research process 1. Collection of data and information
2. Analyse market surveys
Data storage system
Market research analysis system Workflow Management System
Customer relationship management system
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11 CONCLUSION GiveToHelp is an innovative smartphone application. It is different than traditional methods because it has a heightened convience, thereby increasing the number of charitable donations. My business intends to deliever an efficent and accurate app which aims to improve the number of donations to charities by being a fun, quick and simple application. GiveToHelp will make it easier for technology savvy individuals to make charitable donations that are easily accessible. It aims to satify our customers needs by giving the customer a valuable tool that can easily be used to conviently donate. Due to being new in the market, marketing and selling the product is the most important value chain activity in order to create an established app. My cost leadership strategy, specific information systems, value chain activiity and business processes use information systems that will help to support and deliever value to both my company and its users. REFERENCES
1. Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86(1), 78-93
2. Apple, no date, app store. Retrived from https://itunes.apple.com/nz/genre/ios/id36?mt=8
3. Koekkoek, H. (2013). How the most successful apps monetize their user base. Retrieved from http://www.distimo.com/blog/2013_03_publication-how-the-most- successful-apps-monetize-their-user-base/
4. Louis, T. (2013). How much do average apps make? Retrieved from http://www.forbes.com/sites/tristanlouis/2013/08/10/how-much-do-average-apps- make/
5. Melissa. (n.d.). Is it really profitable to develop a mobile app? Retrieved from http://www.bluecloudsolutions.com/articles/profitable-develop-mobile-app/
6. Austin, Scott (2013) The surprising numbers behind apps. Retrieved from http://blogs.wsj.com/venturecapital/2013/03/11/the-surprising-numbers-behind-apps/
7. Pullar-Strecker, T. (2013, May 21) Smartphone ownership almost doubles. Retrieved from http://www.stuff.co.nz/technology/gadgets/8698771/Smartphone-ownership-almost-doubles.