RUNNING HEAD: WEEK 6 Case Analysis

Week 6 – Case Analysis

Chapter 13: The Challenge of Mobile Application Development.

MIS – 535

Professor Jonathan Coombes

Keller Graduate School of Management

Team 1

James Dufresne, Nicole Frickson, Rebecca Ceja,

David Fontanez, Alan Harris,

Augusto Junior, Susan Schendl

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Summary

The use of mobile devices has changed the way businesses connect with consumers.

Using mobile phone applications to reach potential customers is imperative for a business to

compete in today’s market. Today’s mobile apps are produced to be compatible with multiple

mobile platforms. Think iOS, Android and Windows 8. InterContinental Hotels Group (IHG)

developed their own mobile app to compete with travels giants such as Orbitz and Kayak. By

creating a user friendly app, potential guests can view the specifics of the hotel, reviews, and

maps. IHG used in house teams to create and maintain the application. These teams consisted of

project managers and IT specialists working together to keep the app operational. They also use

information architects and graphic designers to analyze guest feedback and modify the

capabilities accordingly. Another approach to mobile application development is using an

outside source. Alex & Ani, a U.S. jewelry designer, works with Mobiquity, a mobile IT

solutions group to create point of sale (POS) mobile devices for their staff. This concept allows

the customer to purchase items from anywhere in their store, eliminating dreaded checkout line.

First management mapped out the “mobile moments’ (Laudon, pg. 531), monitoring the where,

when and length of time the customer interactions occurred. The next phase is define the

employee- client interaction, how to engage the client using the iPod touch application to help

the client locate items or to check out. Next, Alex and Ani connected the mobile application to

their internal systems, linking inventory and product information. The process of integrating a

mobile application ends with analyzing the performance and user feedback for continued

improvements to the application.

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Evaluation

Both InterContinental Hotels Group (IHG) and Alex and Ani saw an opportunity where

using mobile applications could help add value to their organizations. IHG needed to enter the

mobile application realm in order to stay competitive with other hotel chains and specialty sites

for hotel reservations such as booking.com and hotels.com. Alex and Ani saw an opportunity to

use a mobile application in a different way in that it was used in store to help reduce check out

times for customers by giving the employees a mobile point of sale system. IHG needed to

develop a solution fast to help stay competitive. For this reason IHG most likely used a form of

Agile Development. “Agile Development focuses on rapid delivery of working software by

breaking a large project into a series of small subprojects” (Laudon, 2016). Alex and Ani was

able to help reduce their checkout times because of the use of their new mobile application.

Questions

1. What management, organization, and technology issues need to be addressed when

building a mobile application?

Due to the drastic changes in technology, businesses are being forced to become

innovative and need to change their approach to their customers. As technology grows and

become more mobile, businesses need to develop mobile applications and incorporate a new

tactic for marketing. The development of mobile applications can be complex therefore it is

crucial to have a plan to ensure all stages of the mobile application are accounted for. When

building a mobile application, there are several management, organization and technology issues

that would need to be addressed. Looking at the breakdown of each can ensure the business has a

quality mobile application that still meets the demands of their customers. In the case of
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Intercontinental Hotels Group, they were in need of an app to stay competitive. (Laudon, pg.

529). Due to the fact that mobile devices are becoming the preferred method of booking hotels,

IHG needed to move fast in order to compete with other Hotel online websites such as Orbitz,

Booking.com, and Hotels.com. An important issue to address is the technical issues when

developing an app. Through the organization of all people involved, one is able to see the

efficiency in the process when each stage of the development part of the mobile application is

being executed seamlessly. When building a mobile application, IHG needs to focus on the

purpose of the app and how to make it work on mobile devices. Since the experience of a mobile

app differs from that of a computer it can create difficulties when building an application to fit

on the smaller screens of mobile devices. Some of the technical difficulties are developing the

same experience for customers that have different operating systems such as iOS, android, and

windows. It will take time to develop an app to work on different platforms and the specialists

need to address the fact that as systems update, they will need to update the mobile app as well.

Since guests can use the IHG app to view over 4,800 hotels and have visibility to maps, rewards

programs and many other features, the app will need to be maintained in the 8 platforms it

currently has. Management of the app and managing the specialists behind the development of

the app is crucial to ensure that the application runs smoothly. According to Laudon, there is

constant teamwork between marketing and mobile application developers. Laudon states, “Bill

Keen, director of IHG mobile solutions, works with a team of eight product managers and 12

information technology specialists on IHG Mobile.” (Laudon, pg. 530). The 12 specialists were

in charge of the overall design, synchronizing the transaction systems as well as incorporating

updates for weather and maps. Every morning the specialists have a meeting to discuss new

features and brainstorm ideas as well. The organizational issues were definitely addressed with
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IHG as their entire workflow is organized and efficient. Aside from the 12 specialists, there are

also product managers who determine what feature should be worked on and the developers let

them know if it can be done within a 2 week time frame. All adjustments and new features are

done within a 2 week time frame, so it is an advantage that the team has a set schedule for all

new and developing features. The text states, that both the producers and developers use an agile

development process all while operating as single unit in terms of responsibility and

accountability. Supporting the team’s efforts is an architect and graphic designer for the mobile

application. They utilize the guest’s feedback to determine what guests would need or want from

the app. Once they gather enough information, photos and design, they send it back to the

developers to implement in the software.

2. How does user requirement definition for mobile applications differ from traditional

systems analysis?

In today’s consumer market, mobile devices have become essential to productivity and

efficiency. Employees expect to have the tools they need to provide a service or product without

having to leave the customer or find an available computer terminal. Customers expect to select a

product or service with minimal time wasted in long checkout lines. Today’s mobile devices

allow for both efficiency and convenience, making a transaction between the customer and

retailer much more successful. Traditionally business planned for a computer terminal and

checkout station. The amount of each was based on predicted customer volume. As a customer

entered the store they would locate the product they needed. If they required help, an employee

would assist the customer sometimes requiring a computer terminal. Once the customer selects
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their product, they would then proceed to the checkout station. Today’s transactions have been

developed to give a more personalized experience while making it more efficient for the retailer

and customer. When a customer enters a store an employee, with a mobile device, can how help

determine what product the customer needs, locate, and process payment in one smooth

transaction. In order to make a successful mobile application, business must use a different

approach to determining user requirements during development. Business must first choose

weather to develop and mobile web app or native app. While mobile web apps are easier and less

costly to develop, they require a direct connection to the internet to function. They also can be

difficult to navigate when designed for a webpage, and then ported over to a mobile device.

Native apps can operate without an internet connection but require specific programs to be

written for different mobile platforms. This significantly increases development cost. Native

apps gain their advantage when using the devices full potential to deliver its experience.

Cameras, microphones, speakers, GPS, and device processing power make native apps very

appealing. Once an app has been chosen, business must know when and how the device is going

to be used. They must develop it so that the user is able to get from point A to B without

excessive delays. Then the way the app delivers its experience must be planned. Upgrades to a

business system are common when implementing a new mobile device process. After

deployment of the mobile app, business must monitor the performance of their processes,

identify shortfalls, and develop improvements.

3. Describe Alex and Ani's sales process before and after the mobile application was

deployed?
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Alex and Ani, founded in 2004, designs, produces, and sells high-quality, eco-friendly

jewelry in the United States using artisanal techniques, and is dedicated to helping its customers

find inner peace and positive energy. Having customers in Alex and Ani stores wait on long

checkout lines ran counter to the company’s philosophy and brand image. Alex and Ani created a

mobile point-of-sales and payment solution where sales people can swipe credit cards, scan bar

codes, and print, allowing a customer to sign and receive copy of the credit card receipt at the

time of purchase while they are in the store aisles. They do not have to wait in line for a cashier.

The mobile app helps store sales staff to be more attentive to customers while reducing time to

pay for purchases. This enhances the in-store customer experience, improves brand perception,

and provides better customer service, thereby increasing sales revenues. Step one was to identify

the mobile moments where a mobile app would be helpful. The second step was to design the

mobile engagement—that moment when sales staff engages a customer during mobile moments

and which moments benefit both the customer and the company. Step three was to engineer

people, processes, and platforms to deliver the mobile experience. An effective mobile app often

requires changing the firm’s internal systems, such as those for inventory management,

customers, and reservations. Changing those systems typically requires new APIs and tuning the

systems to respond more quickly to requests; such changes account for 80 percent of the cost of

most mobile projects. Alex and Any connected their mobile app to the company’s point-of-sale

systems as well as to systems with detailed product information. The fourth and final step is to

monitor performance and improve outcomes. Alex and Ani analyzed its mobile retail application

to determine the length of time for checkouts, whether the app reduces checkout time from

minutes to seconds, and which customers complete transactions.

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References

Laudon, K. C., Laudon, J. P., (01/2015). Management Information Systems: Managing

the Digital Firm, 15th Edition. [devry]. Retrieved from

https://devry.vitalsource.com/#/books/9781323187944/