PROJECT TITLE: ONLINE CAR AUCTIONING SYSTEM

SUPERVISOR: LECTURER MARTIN MULWA

BY

NAME: CATHERINE NTHENYA MBONDO

REG NO: TU01-IC211-0371/2018

A PROPOSAL SUBMITTED TO THE DEPARTMENT OF INFORMATICS AND

COMPUTING IN THE SCHOOL OF SCIENCE AND INFORMATICS IN PARTIAL
FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF
BACHELOR OF SCIENCE IN INFORMATION TECHNOLOGY IN TAITA TAVETA
UNIVERSITY.

FEBRUARY 2023

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DECLARATION
I hereby declare that the project proposal entitled Online Car Auctioning System submitted for
the B.Sc. Business Information Technology degree is my original work and the project proposal
has not formed the basis for an award of any degree, diploma or any other similar titles.

Name:

Signature:

Date: 03/02/2023

This proposal will be submitted for examination with my approval as a University Supervisor.

Name:

Signature:

Date:

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DEDICATION
I would like to dedicate this research proposal to all those who made it possible for me to carry
out this research. A special dedication to my family, friends and lecturers for giving me this
chance and providing encouragement and financial, academic and mental support.

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ACKNOWLEDGEMENT
I would like to thank God for wisdom, peace of mind, strength, skills and knowledge to write this
research proposal.

I would also sincerely thank my lecturer Mr. Martin Mulwa for his excellent supervision,
understanding and support throughout research and for his valuable input into my work.

I would also love to express gratitude to my best friend and classmates who have supported me
throughout the process.

Finally, all thanks go to my family for their sincere support.

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ABSTRACT
The online car auction system is very common to sell vehicles especially used vehicles in most
nations and becomes very popular for its reliability and quality assurance. Nowadays people are
very interested in the new cars and also for exchanging their old cars with the new ones and the
online auction receive much attentions. Moreover, the car dealers send their cars to the auctions
with the main purpose to be sold out quickly and hassle-free. In Japan, there are over 30 well-
known auto auctions and two hundred auto auction locations. Though the auctions can be found
in most countries however in many countries their laws allow only dealership holders for used
car exports, local business and usually the auctions are exclusive to the licensed automobile
dealers. With this concept of car auction system, a proposed idea for online based car selling and
buying in Kenya will be developed not only for the licensed dealers but also for the general
people who can wish take part in this auction.

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Table of Contents
DECLARATION.............................................................................................................................ii
DEDICATION...............................................................................................................................iii
ACKNOWLEDGEMENT..............................................................................................................iv
ABSTRACT....................................................................................................................................v
TABLE OF FIGURES.................................................................................................................viii
ABREVIATIONS AND ACRONYMS.........................................................................................ix
CHAPTER ONE............................................................................................................................1
INTRODUCTION.........................................................................................................................1
1.0 Overview...............................................................................................................................1
1.1 Background Information.....................................................................................................1
1.2 Problem Statement...............................................................................................................2
1.3 Objectives..............................................................................................................................2
1.3.1 General Objectives..........................................................................................................2
1.3.2 Specific Objectives..........................................................................................................2
1.4 Research Questions..............................................................................................................3
1.5 Significance of the study......................................................................................................3
1.6 Scope and Limitations of the study....................................................................................3
1.7 Justification...........................................................................................................................3
1.8 Project risks and mitigation................................................................................................4
CHAPTER TWO...........................................................................................................................6
LITERATURE REVIEW.............................................................................................................6
2.0 Introduction..........................................................................................................................6
2.1 Existing Systems...................................................................................................................7
2.1.1 Car Auctioning System in Developed Countries............................................................7
2.1.2 Lion Trans Car Auction...................................................................................................8
2.1.3 Car Auction Systems in Kenya.......................................................................................9
2.1.4 Adesa Auctions................................................................................................................9
2.1.5 KAR Auction Services....................................................................................................9
2.2 Summary.............................................................................................................................10
CHAPTER THREE.....................................................................................................................11
METHODOLOGY......................................................................................................................11

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 3.0 Introduction........................................................................................................................11
3.1 Population and sampling...................................................................................................11
3.2 Data Collection Techniques...............................................................................................11
3.2.1 Questionnaires...............................................................................................................11
3.2.2 Interviews......................................................................................................................12
3.3 Development tools and material.......................................................................................12
3.3.1 Programming Languages...............................................................................................12
3.3.2 Hardware requirements.................................................................................................13
3.4 System Development Methodology...................................................................................13
3.4.1 Agile Development Model............................................................................................13
3.4.2 Phases in Agile Model...................................................................................................13
3.5 Feasibility Study.................................................................................................................15
3.5.1 Operational Feasibility..................................................................................................15
3.5.2 Economic Feasibility.....................................................................................................15
3.5.3 Technical Feasibility.....................................................................................................15
4. CHAPTER FOUR...................................................................................................................16
SYSTEM ANALYSIS AND REQIUREMENT MODELLING..............................................16
4.0 Introduction........................................................................................................................16
4.1 Problem Analysis................................................................................................................17
4.2 Requirements Specification...............................................................................................17
4.2.1 User characteristics........................................................................................................17
4.2.2 Functional Requirements...............................................................................................17
4.2.3 Non-Functional Requirements......................................................................................18
REFERENCES............................................................................................................................19

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TABLE OF FIGURES
Figure 1 Agile Methodology SDLC..............................................................................................15

viii
ABREVIATIONS AND ACRONYMS

OAS – Online Auctioning System

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 CHAPTER ONE

INTRODUCTION

1.0 Overview
This chapter will explain the background of the study, problem statement, the purpose of study,
objectives of the study, research questions, limitations, and the study's scope.

1.1 Background Information

Auctioning is a method of buying and selling goods or services by having potential buyers bid on
them. Initially, the auctioneer starts at a low price to attract a large number of participants, and
the cost rises with each subsequent bid until the highest bidder takes the item. This type of
transaction can be traced back to 500 BC in ancient Greece when women were being auctioned
for marriage. In the United States, early auctions were used to sell farm goods, properties, and
slaves. With the evolution of technology in the 1990s, auctioneers began to use computers, cell
phones, and fax machines to increase the efficiency of their business. In 1995, the first online
bidding site, eBay, was launched, transforming the auctioneering industry. Today, different
auction systems, such as the English auction system, Dutch auction, first-price sealed-bid
auction, and second-price sealed-bid auction, are popular with buyers and sellers alike. In Kenya,
most secondhand vehicles sold are imports from Japan, resulting in a motorization rate of 28
vehicles per 1000 inhabitants. To revitalize the auto industry, some new international car
manufacturers have entered the market, such as Peugeot and Volkswagen, who have opened
assembly plants in Thika and Mombasa, respectively.

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1.2 Problem Statement
The current situation involves a system that enables buyers to purchase vehicles online. Buyers
can buy brand new cars, used vehicles, purchase car parts, get vehicles through a loan or
participate in an online auction where they are allowed to place their bids and whoever wins the
bid purchases the vehicle at the bid price that won. The weakness of the current system include
that the site lacks a feature where car dealers and other individual sellers can auction cars on
their own, but instead the company running the website auctions cars on behalf of car dealers and
sellers. Other weakness are that the site is not fully automated and apart from auctioning cars, the
site also sells brand new cars and other used cars that are not on auction.

The new system addressed the issues above by focusing on specific niche which was auctioning
cars only and not selling brand new cars, other used cars, or even car spare parts as it is with
carduka.com. The primary focus was to connect a buyer with a car auctioneer. The system also
sought to address the first two missing links by introducing a feature that allows car dealers and
other sellers to auction cars on their own, effectively enabling buyers to bid on the cars auctioned
and selling their cars to the buyers who won the bids competitively. With such, the car dealers
and sellers uses the system to directly interface with the buyers. Online Car Auctioning system
also automated most processes that require automation for seamless operations and efficient
service delivery.

1.3 Objectives
1.3.1 General Objectives
This research proposal aimed at developing an Online Car Auctioning system that enables users
to auction cars online.

1.3.2 Specific Objectives

The following are the objectives of the research study:

i) To allow a seller upload images of car before opening a bid.

ii) To allow bidders to place bids on cars on auctions competitively.
iii) To allow the system award the bid to the highest bidder.

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 iv) To remove the need for buyers to negotiate with sellers.

1.4 Research Questions

i) How will the developed system allow sellers upload images of cars before opening a bid?
ii) How will the developed system allow bidders to place bids on cars on auctions
competitively?
iii) How will the developed system award the bid to the highest bidder?
iv) How will the developed system remove the need for buyers to negotiate with sellers?

1.5 Significance of the study

The developed Online Car Auctioning System helps car sellers auction online, the cars that they
want to sell and open bids for those cars to allow bidders bid competitively. The system awards
the bid to the highest bidder and this smoothens the processes of buying and selling used cars in
Kenya.

1.6 Scope and Limitations of the study

This project focuses on online auctioning of used cars for those car owners who want to sell their
used cars in Kenya. The project also targets those individuals who want to buy secondhand cars
which are legit and without being exploited by car dealers, who may fail to provide the required
information about the cars or even overpricing the buyers.

Limitations of the study: it’s difficult to ensure that the auction process is fair and reliable due
to the lack of face-to-face interaction. The system cannot be used to facilitate any type of
financial transactions, such as loans or financing. Additionally, the system will not be able to
integrate with any other third-party systems or databases.

1.7 Justification
An online car auctioning system provides buyers with greater convenience. Rather than having to
travel to dealerships to test drive cars and negotiate prices, buyers can now do all of this from the
comfort of their own homes. This can save buyers time and money, while also allowing them to
shop around for the best deal. Additionally, it eliminates the need to hire additional staff and
resources associated with a physical car auction, and it allows for a much larger audience reach.

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Finally, buyers are able to research the cars in advance and compare different models and prices
before committing to a purchase, allowing them to make more informed decisions.

1.8 Project risks and mitigation

In an online car auctioning system, we have the following risks;
i) Security Risk: Unauthorized access, data leakage, malicious software, etc
ii) Technical Risk: There should be a reliable platform to ensure smooth operation of the
auctioning system.
iii) Budget Risk: Unforeseen expenses, delayed payments, inadequate resources, etc.
iv) Human Resource Risk: Poor quality of work, inadequate staffing, lack of skills, etc.
v) Legal Risk: Noncompliance to laws and regulations, litigation, etc.

Mitigation Strategies:

i) Security Risk: Implement robust authentication and authorization protocols, secure data
storage and encryption, and regular security testing and monitoring.
ii) Technical Risk: Regularly maintaining and updating the system can prevent technical
issues
iii) Budget Risk: Clearly defining project scope and budget, and developing realistic
timelines.
iv) Human Resource Risk: Use qualified and experienced personnel, and provide adequate
training and support.
v) Legal Risk: Engage experienced legal counsel to ensure compliance with all applicable
laws and regulations.

1.9 Budget and resources

Some of the major costs associated with the project include the development of the software,
hardware, network infrastructure, and staffing. Depending on the size and scope of the project, it
may also include the cost of marketing and advertising, customer service, and customer support.
The budget should also include an allowance for contingencies. This will help to mitigate any
unexpected costs that may arise during the project. Finally, the budget and resources should also
include any necessary hardware, such as servers, networking equipment, and other components.

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In order to develop an online car auctioning system, the project team will need access to a variety
of resources. These include: experienced software development professionals, an experienced
project manager, web design and web programming resources, a secure web hosting and
maintenance solution, and a marketing team to help promote the system. Additionally, the
project team may need access to market data about car prices, vehicle history reports, and other
relevant information

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 CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction
An auction is a market with an explicit set of rules determining resource allocation and prices
based on bids from market participants (McAfee & McMillan, 1987). Generally speaking, an
auction is the standard means for performing aggregation of supply and demand in the
marketplace to effectively establish a price for a product or service. It establishes prices
according to participants’ bids for buying and selling commodities, and the commodities are sold
to the highest bidder. Simply an auction is a method that is based upon competition between the
participants. It is the purest of markets: a seller wishes to obtain as much money as possible for
the commodity offered, and a buyer wants to pay as little as necessary for the same commodity.
Traditionally, there are three protagonists in the auction: sellers, buyers, and auctioneers. An
auction offers the advantage of simplicity in determining market-based prices. In the case of a
traditional physical auction, a seller will choose an auction house based on the service: the form
of licensing, the availability of suitable insurance, suitable descriptions and access to the
commodities, payment terms, and security of goods before and during the auction process. In
online auctioning participants effectively place bids using a computer on an anywhere-anytime
basis. The access is not only limited to desktop computers, but also handheld devices such as
mobile phones. In online auctions, transactions take place based on information (product
descriptions), and the products move from the seller directly to buyers only after online
transactions are completed. They facilitate buyers and sellers meeting, listing of items for sale

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independent of physical location, exchanging information, interacting with each other, and
ultimately completing transactions. They offer significant convenience, allowing trading at all
hours, and provide continually updated information and they allow buyers and sellers to trade
directly, by bypassing traditional intermediaries and lowering costs for both parties. Online
auctions are global in reach, offering buyers a significantly broader selection of goods to
purchase and providing sellers with the opportunity to sell their goods efficiently to a broader
base of buyers. Factors that make online auctions attractive may also present disadvantages.
Many online auctions simply list the items for sale. No attempt is made to verify and check that
the merchandise exists or that the description is accurate. Transaction trustworthiness and
security are the two most significant problems.

Online auctions have become very popular. One of the most successful online auctions, eBay
(www.ebay.com) purports that the number of active users worldwide has increased from 27.7
million in 2002 to 41.2 million in 2003, and the number of listings was about 292 million in 2003
(eBay, 2004). Nielsen/Netratings, the global standard for Internet audience measurement and
analysis, also reports that eBay was one of the top five sites in Germany and the United Kingdom
in February 2004 (Nielsen/Netratings, 2004). The research firm, the Aberdeen Group, found that
94% of net market transactions were through auctions, with just 6% through catalog sales
(Pritchard, 2002). Most auctions are open to the public you can find whatever you want.
Although online auctions have been developing for many years, there are still two major
problems, trustworthy transactions, and security. Regarding the first problem, trustworthy
transactions, many auction sites describe themselves merely as meeting places for buyers and
sellers. They simply allow sellers to list products offered for trade and do not verify that the
products exist or are accurately described. They only use an email address to identify the buyers
and sellers. After the auction is over, it is the seller’s responsibility to deal directly with the
buyer concerning payment and delivery. The auction companies do not hold any responsibility
for the transaction. Auction fraud is, therefore, an increasingly difficult problem in the virtual
market. OAS should provide secure data transactions from sellers to OAS and from OAS to
buyers.

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2.1 Existing Systems
2.1.1 Car Auctioning System in Developed Countries
Auctions are very common in developed countries. In most nations, auto auctions are the most
popular to sell used cars, especially in Japan as Japan is one of the most advanced countries in
technology and automation. There are lots of car auctions in Japan and among them, some are
very big auctions such as Used Car System Solutions (USS), Toyota Auto Auction (TAA),
Mirive, etc. Probably the largest, most convenient used vehicle auction, the USS auto auction
also provides “Globe Network” services utilizing satellites and internet-based “Internet live”
service. For reliability, safety, and high quality, the popularity of Japanese vehicles is vast
around the world, hence used car export is increased at a high speed all over the world. Japanese
auction houses provide high-quality used cars at cheap prices as the additional costs are not
provided by the dealers. According to Japanese law, a person cannot easily do the used product
business like cars, computers, and furniture unless having a second-hand dealer license called
“kobutsusho”. In general, without the license, people are not allowed to be authentic members of
the auction, and to take part in the auto auctions only the license holders can become members
and can bid on the cars for buying and selling.

To sell the cars in USS or big auctions, the sellers have to bring the car to the auction garage
before the auction is held. The sellers also fill out the inspection sheet about the actual situation
of the car. All the details of the car are also examined by the inspectors to evaluate all the
features and faults of the car which play a vital role in judging the car by the buyers. The auction
is held in a big house with thousands of PC and big monitors. Sellers have to pay the
participation charge to put the cars in the auction whether the car will be sold or not.

2.1.2 Lion Trans Car Auction

Lion Trans is a group of international transportation companies established in 2008 which works
in Armenia, Canada, Georgia, the USA, and Ukraine. Lion Trans Car Auction is a web platform
that allows users to buy and sell vehicles. People can list their cars and review other lots, check
extensive data and make bids. It handles intercontinental transportation, warehousing services,
vehicle auction transaction support, document support, and partial or full credit financing. The
Lion Trans Car Auction has warehouses in Canada and the USA, so it can deliver the vehicles by
sea or land. Customers can register as individual users, or as insurance, dealership, and rental

8
businesses so long as they have licenses or are dealership holders. Clients have access to search
the system, can make bids, buy cars and explore information. The users can as well list their
offers, see the history of bids, accept them, withdraw money sent to them, and communicate with
support. History of bids and lots is available to all types of users, as well as administrators. Each
lot comes with extensive information; technical details, photos, certificates, and statistics.

2.1.3 Car Auction Systems in Kenya

In Kenya there are some car auctioning sites which do not specifically deal with auctioning only,
but they also sell and buy brand new cars, selling vehicles spare parts and some even selling
vehicles on loans. One of the major sites in Kenya is CarDuka which is a system that enables
buyers to purchase vehicles online. Buyers can buy brand new cars, used vehicles, purchase car
parts, get vehicles through a loan or participate in an online auction where they are allowed to
place their bids and whoever wins the bid purchases the vehicle at the bid price that won. The
weakness of the system include that the site lacks a feature where car dealers and other
individual sellers can auction cars on their own, but instead the company running the website
auctions cars on behalf of car dealers and sellers. Other weakness are that the site is not fully
automated and apart from auctioning cars, the site also sells brand new cars and other used cars
that are not on auction. The weaknesses of CarDuka are also represented in other sites for selling
and buying cars online in Kenya.

2.1.4 Adesa Auctions

Founded in 1990, Adesa is a global leader in the auto auction industry, offering both live and
online auctions. It offers services in the United States, Canada, and Europe and is owned by the
KAR Global Group. Adesa is an innovative company that has revolutionized the way people buy
and sell cars. With live and online auctions, it makes it easier for buyers and sellers to find each
other in a quick and efficient manner. It has also expanded its services to Europe, making it even
easier for buyers and sellers to access these auctions. The fact that it is owned by the KAR
Global Group speaks to its commitment to providing excellent service and a reliable platform for
customers. Adesa is a great example of how technology can help facilitate transactions and make
the car buying and selling process more efficient.

2.1.5 KAR Auction Services

This is an existing online car auctioning system, where it provides an efficient and user-friendly
platform for buyers and sellers to conduct transactions. It offers a wide range of vehicles,
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including used, new, and luxury cars, as well as a variety of services to help buyers and sellers
maximize their profits. The system has an intuitive, secure checkout process and a wide variety
of payment options to ensure a smooth transaction. It also provides detailed information about
each vehicle, including detailed photos and vehicle history reports, to help buyers make informed
decisions. The system is designed to provide buyers and sellers with a secure and convenient
way to buy and sell cars online.

2.2 Summary
From the related study, it is seen that online car auctions in some countries are established
however there are strict rules and regulations. As an example, in Japan, only dealership holders
can become members of auto auctions. Auto auctions are also exclusive to licensed automobile
dealers in the United States. In Kenya the present sites are not specifically for auctioning cars but
also selling brand new cars, selling cars on loans and even selling car spare parts. The sites lack a
feature where car dealers and other individual sellers can auction cars on their own, but instead
the companies running the websites auction cars on behalf of car dealers and sellers. Another
weakness is that those sites are not fully automated. The Online based system proposed for
Kenya will not only be for the licensed dealers but also for the general people to take part in this
auction. It will also enable sellers to auction cars on their own and directly interact with buyers
with no need of physical location hence reducing time for car buying and selling processes.

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 CHAPTER THREE

METHODOLOGY
3.0 Introduction
Methodology entails the techniques that are used to gather information on certain problems in a
given area. The chapter describes the processes that the researcher will use in the research
proposal to collect and analyze the data that is needed to be collected from the research field.
This section will cover the following major areas: Research design, target population, Sample
and Sampling procedure, research /data collection instruments, validity and reliability of
instruments, data collection procedures, limitations and data analysis procedures.

3.1 Population and sampling

The population is all items in any field according to. (Curtius, Wright, & Graham,
2017)Sampling is a reduction technique which allows a large data set to be represented by a
small subset of data. (Chen et al., 2018) . A research population is also known as well-defined
collection of individuals or objects known to have similar characteristics. All individuals or
objects within a certain population usually have a common, binding characteristics or trait.
(Drake & Stafford, 2017).The main target for this study was most importantly secondhand car
buyers, secondhand car sellers and car dealers in general. To reduce biasness and incorrect data
collection, a random sampling technique was employed in the selection of the population.
Stratified sampling was used as the sampling technique for the research of this project because it
uses probability methods, which can reducing sampling error.

3.2 Data Collection Techniques

The study used questionnaires, interviews and observations as the main instruments of data
collection.

3.2.1 Questionnaires
Questionnaires consist of questions structured to gather specific information from respondents.
The questions are considered as a written interview in which the respondent can respond through
various channels. They can be done face-face or over the mobile phone. The researcher will
ensured that the questions were simple to answer and avoided personal and direct questions,
which were free from biasness. Sample questions were:

i) Have you ever sold or bought a second hand car?

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 ii) Have you ever participated in an Auction?
iii) Do people prefer dealing with dealers or interact through a website?
iv) What level of information one will need before buying a secondhand car?

3.2.2 Interviews
An interview is a conversation held between a researcher and an interviewee to get specific data
about a topic. The questions are generally brief, and so does the researcher expect answers to be
(Taneja, 2017). The interview is mainly face-to-face. Interviews were conducted among people
of different age groups so as to know exactly how they buy and sell their secondhand cars.

3.3 Development tools and material

3.3.1 Programming Languages
3.3.1.1 HTML, CSS, PHP AND JavaScript
These are web scripting languages that enabled coding of this system, together with an editor, it
is very easy and convenient to develop a web-based application (Stark, 2010). These
programming languages enabled the developer with both front end and the back-end features.
HTML which is Hypertext Markup Language was used together with cascading style sheet CSS
to develop the design and styling of the user interface. JavaScript, on the other hand, was used to
make features of the system to be responsive such as on hover and also making the website to fit
on different sizes of the screens. PHP was used to develop the server-side scripting (Robbins,
2012). XAMPP server was utilized in the development of this project since the system was
developed on Windows operating system.

3.3.1.2 Visual Studio

Visual Studio is the editor that was used to combine features of HTML, PHP, CSS and
JavaScript to output an interface that is efficient and of high quality.

3.3.1.3 MySQL
MySQL is an open source relational database management system (RDBMS) based on
Structured Query Language (SQL). It is the most popular open source SQL database
management system. MySQL aids in the creation of a database where all tables are stored. It
enables easier retrieval, modification, and storage of data (Nixon, 2012). The database helps a
user interact fluently with the system.

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3.3.1.4 XAMPP server
In the whole development of this system, database was in XAMPP server (Agrawal, 2014).
XAMPP server runs Windows operating system, Apache, MySQL database and PHP. XAMPP
server iOS an open source free to use under GPL license agreement and therefore, made the
developer achieve the objectives.

XAMPP server includes great graphical tools, PHPMySQL which enabled the developer handle
the administration of MySQL (Zong-gen, 2011). PHPMyAdmin helped with creating databases
and tables and modifying data between them.

3.3.2 Hardware requirements

For the development of this project a PC or Laptop with at least storage capacity of 500 GB hard
drive and at least 4 GB of Random Access Memory (RAM) with processing speed of 2.06 GHz
was used.

3.4 System Development Methodology

Software design is the transformation of the user and functional requirements into the best form.
The purpose of the transformation is to help the programmer in coding and implementation of a
system. The software development method that the researcher will use for this system is agile
development method. The reason why the researcher choose to use the agile development
methodology is because it allows continuous iteration of both development and testing
throughout the lifecycle of a project. Also, it makes it possible to fix errors in the project.

3.4.1 Agile Development Model

Agile development was the best software development for this project because it allowed easier
planning since development is iterative and the system’s execution was done in short weeks
iterations (Ahmet & isaur, 2018). The model uses incremental and iterative approach, hence the
developer can always go back to stages that were developed first in case any change occurs in
the requirements.

3.4.2 Phases in Agile Model

a) Concept: This is the first phase of agile model where the product owner determines the scope
of their project. If there are numerous projects, they prioritize the most important ones. The
product owner also discusses the key requirements with the client and prepares documentation to

13
outline them, including features that will be supported and the proposed end results. The
developer also estimates the time and cost of potential projects.

b) Inception: A phase where software development team is formed. The developer picks the
best people for the project and provides them with the necessary tools and resources. They can
then start the design process. The team creates a mock-up of the user interface and builds the
project architecture.

c) Iteration: The iteration phase is also referred as the construction phase. It tends to be the
longest phase as the bulk of the work is carried out here. The developers work with other
designers to combine all product requirements and customer feedback, turning the design into
code. The goal is to build the bare functionality of the product by the end of the first iteration.

d) Release: The product is almost ready for release but first, the quality assurance team performs
some tests to ensure the software is fully functional. If potential bugs or defects are detected, the
developer addresses them. User training will also take place during this phase, which requires
more documentation. When all of this is complete, the product’s final iteration can then be
released into production.

e) Maintenance: The software is now fully deployed and made available to customers. During
this phase, the software development team will provide ongoing support to keep the system
running smoothly and resolve any new bugs. Additional training is offered to users to ensure
they know how to use the product.

f) Retirement: Two reasons why a product enters the retirement phase is either to be replaced
with a new software, or the system becomes obsolete or incompatible with the organization over
time. The software development team first notifies users that the software is being retired and if
there is a replacement, the users will be migrated to the new system.

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3.5 Feasibility Study
This area introduces in terms of a research into why it is more viable than the existing system.
Three main areas of feasibility are Operational Feasibility, Technical Feasibility and Economical
feasibility.

3.5.1 Operational Feasibility

The main objective of developing an Online Car Auctioning System was to enhance effective
auctioning of used cars in Kenya. The users of the system are expected to accept and appreciate
the benefit of auctioning and bidding vehicles without the intervention of car dealers/third
party/brokers and with no need for physical locations to transact their businesses.

3.5.2 Economic Feasibility

The developer may only incur development and maintenance costs which are affordable as most
of the resources required were readily available. The software that used was available on open
sources and thus reducing the overall costs. Development of the user interface also did not
require extra resources in terms of software and hardware beyond those required by the entire
system.

3.5.3 Technical Feasibility

It was feasibly possible to develop the system using the available technical skills that the
developer had learnt and acquired through experience.

15
Figure 1 Agile Methodology SDLC

4. CHAPTER FOUR

SYSTEM ANALYSIS AND REQIUREMENT MODELLING.

4.0 Introduction
The primary objective of this chapter is to collect and interpret facts, identify the problems and
interpret the system into its specific features. System analysis is a process of collecting and
interpreting facts, identifying the problems, and decomposition of a system into its components.
It is conducted for the purpose of studying a system or its parts in order to identify its objectives.
It is a problem solving technique that improves the system and ensures that all the components of
the system work efficiently to accomplish their purpose. The main purpose of conducting this
study is to get a proper view of the system in order to solve arising problems and ensure that

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there is a collective working pattern comprising all the components of the system to come up
with a clear, efficient and accomplishing output.

4.1 Problem Analysis

The current situation involves a system that enables buyers to purchase vehicles online. Buyers
can buy brand new cars, used vehicles, purchase car parts, get vehicles through a loan or
participate in an online auction where they are allowed to place their bids and whoever wins the
bid purchases the vehicle at the bid price that won. The weakness of the current system include
that the site lacks a feature where car dealers and other individual sellers can auction cars on
their own, but instead the company running the website auctions cars on behalf of car dealers and
sellers. Other weakness are that the site is not fully automated and apart from auctioning cars, the
site also sells brand new cars and other used cars that are not on auction.

The new system addressed the issues above by focusing on specific niche which was auctioning
cars only and not selling brand new cars, other used cars, or even car spare parts as it is with
carduka.com. The primary focus was to connect a buyer with a car auctioneer. The system also
sought to address the first two missing links by introducing a feature that allows car dealers and
other sellers to auction cars on their own, effectively enabling buyers to bid on the cars auctioned
and selling their cars to the buyers who won the bids competitively. With such, the car dealers
and sellers uses the system to directly interface with the buyers. Online Car Auctioning system
also automated most processes that require automation for seamless operations and efficient
service delivery.

4.2 Requirements Specification

4.2.1 User characteristics
The users of the systems include:

i. Auctioneer/Car sellers: these are individuals who post their vehicles for auction and open
bids for the posted cars.
ii. Bidders/Car buyers: participate in bidding the cars on auction competitively and the
highest bidders wins the bid.
iii. Administrator: responsible for maintenance and updating the system.

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4.2.2 Functional Requirements
Functional requirements are product features or functions that developers must implement to
enable users to accomplish their tasks.(Chen et al., 2018). These requirements define the
capabilities and functions that the implemented system must have in order to achieve its intended
purpose. It includes a set of inputs, behavior and outputs in line with the objectives of the study.
They include the following transactions executed in the system:-

a) The system should provide a way for users to register, login and change login passwords.
b) The system should provide an interface to add an Auction.
c) The system should list all auctions created by Auction Sellers.
d) The system should store information and generate a report of the activities carried out.
e) The system should allow auction sellers to edit and delete auction they have added.
f) The system should allow editing/ updating information about cars before publishing
them.

4.2.3 Non-Functional Requirements

a) Usability

Usability defines how difficult it will be for a user to learn and operate the system. Usability
can be assessed from different points of view:

 Efficiency of use: the average time it takes to accomplish a user’s goals, how
many tasks a user can complete without any help and the number of transactions
completed without errors.
 Intuitiveness: how simple it is to understand the interface, buttons, headings, etc.
 Low perceived workload: how many attempts are needed by users to accomplish a
particular task?
b) Security

Security requirements ensure that the software is protected from unauthorized access to the
system and its stored data. It considers different levels of authorization and authentication
across different users’ roles. For instance, data privacy is a security characteristic that
describes who can create, see, copy, change, or delete information. Security also includes
protection against viruses and malware attacks.

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c) Reliability

Reliability defines how likely it is for the system to work without failure for a given period of
time. Reliability decreases because of bugs in the code, hardware failures, or problems with
other system components. To measure software reliability, you can count the percentage of
operations that are completed correctly or track the average period of time the system runs
before failing.

d) Performance

Performance is a quality attribute that describes the responsiveness of the system to various
user interactions with it. Poor performance leads to negative user experience. It also
jeopardizes system safety when it is overloaded.

e) Availability

Availability is gauged by the period of time that the system’s functionality and services are
available for use with all operations. So, scheduled maintenance periods directly influence
this parameter and it is important to define how the impact of maintenance can be minimized.
When writing the availability requirements, the team has to define the most critical
components of the system that must be available at all time. You should also prepare user
notifications in case the system or one of its parts becomes unavailable.

f) Scalability

Scalability requirements describe how the system must grow without negative influence on
its performance. This means serving more users, processing more data, and doing more
transactions. Scalability has both hardware and software implications. For instance, you can
increase scalability by adding memory, servers, or disk space. On the other hand, you can
compress data, use optimizing algorithms, etc.

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Altin Gumussoy, C. (2016). Acceptance of the virtual item auctioning system in online games:
The role of intrinsic motivation, extrinsic motivation, and trust. Human Factors and
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Beerbaum, D. (2021). Applying Agile Methodology to regulatory compliance projects in
the financial industry: A case study research. Applying Agile Methodology to Regulatory
Compliance Projects in the Financial Industry: A Case Study Research (April 26, 2021).

Cataldo, T. T., Buhler, A. G., Faniel, I. M., Brannon, B., Connaway, L. S., Cyr, C., ... &
Howland, S. (2020). Mixed methods data collection using simulated Google results:
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Constantinov, C., Mocanu, A., & Popescu, E. (2012, October). Online auctioning and
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System Theory, Control and Computing (ICSTCC) (pp. 1-6). IEEE.

Hortaçsu, A., & McAdams, D. (2018). Empirical work on auctions of multiple objects. Journal
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Ribeiro, A., & Domingues, L. (2018). Acceptance of an agile methodology in the public sector.
Procedia computer science, 138, 621-629.

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