INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS
SECTION2014
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ParkME Mobile applicationINTRODUCTIONThe business idea: ParkMe,
is a free mobile application that provides information to users of
parking space vacancy at any location and time. ParkMe addresses
the problem of time wasted and frustration of car drivers trying to
find a car park due to parking undersupply. ParkMes goals are to
maximize the use of the existing parking spaces. ParkMe will help
driver find parking more efficiently and therefore minimize traffic
congestion.3. BUSINESS SECTION 3.1 Vision ParkMe will provide
people from all over the world the information to enable them to
know where to park in no time. The free mobile application will
deliver accurate information that anyone can analyse and
comprehend.3.2 Industry Analysis: Parking search mobile application
industryIndustry: Parking search mobile application industry.
Force:High/Low:Justification:
Buyer power:
HighThe buyer has a very large choice of application at a very
low price. The buyers switching cost is low as many of the apps are
free and can be downloaded individually. There is an estimated 70
billion apps in the world and 25% of them are only used once (Pure
Oxygen). This makes the buyers power very high.
Supplier power:HighThe mobile application industry is growing
quickly. The supply of mobile application developers and
programmers is not keeping up with its demand (Stackpole). As the
demand is high for each supplier (app developers), the suppliers
has high power over choosing who to work for, what to work on and
at what price.
Threat of new entrants:HighAnyone with computer engineering
knowledge can create an app with a very small amount of capital and
in a short amount of time. The lack of barriers of entry makes the
threat of new entrants very high.
Threat of substitutes:LowThe services provided by ParkMe are
very specific. There are other application out there which targets
the same customers as us but dont provide the same service.
Therefore the threat of substitutes is low.
Rivalry among existing competitors:HighThe competition is
fierce; a lot of the businesses competing are of same size. The
business creators are often passionate about their idea, which
often results on excellent applications (Sutter). The rewards are
very high if successful but pleasing the customer and keeping its
attention on your app is very hard. This is fast changing industry
that requires technology and innovation. Therefore the rivalry
amongst existing competitors is high.
Overall attractiveness of the industry: The general mobile
application is an industry is one on the rise. The global revenue
from app stores is expected to rise 62% to $25 billion in 2014.
(Stackpole) In its early life they often struggle to create
revenue, but with time and popularity they can become very
profitable. For example Shazam (mobile app) started out struggling
to create deals with operators. Now it shows revenue of 21.8
million revenue through five different revenue streams (Sweney,
2013). It is a very attractive industry but the reality is that
only the best can survive as only 0.01% of all mobile application
is profitable (Stamford). If one wants to be successful one needs
to have a very high share of the industry. At this time there is no
app as successful as Shazam in the parking search mobile app
industry. Therefore there is room for a well-designed, efficient
and simple mobile app for parking users. And I believe that there
lies an attractive opportunity.3.3 Customers and Their NeedsThe
targeted customers are car drivers who struggle to find parking
inefficiently. There was an estimated 12,250 short term car parks
in Auckland 2007 and that they were short of at least 2500 parks
(Auckland Council, 2012). Time is money, too much money is spent on
fuel and time wasted wondering around trying to find car parks at
peak times. Our customers need a tool that is easy to use. A tool
that will provide them with knowledge of any parking availability
in Auckland at any given time.3.4 The Product and ServiceOur
product is a mobile application that informs the user of short-term
public parking availability. The application will gather the data
from the various car park complexes of car park availability.
Anyone who owns a smartphone or smart device that can download apps
from the major app platforms will be able to download the ParkMe
app for free. They will be able to see parking availability, prices
and the distance from their desired destination through Google
maps. ParkMe will also provide alternative solutions if necessary
such as off-street parking areas combined close to bus stations
that can bring them to their desired destination. Park will give
the tools to its user to assess its opportunity cost of where to
park, what are the chances to secure a park, how much it will cost
and an alternative if he is not satisfied.3.5 Suppliers and
PartnersSuppliersIn order for ParkMe to exist and be efficient we
will first have to hire mobile application programmers and
developers, such as the New Zealand firm Netactive. Netactive
specializes in design, concept and execution of a mobile
application. Then we will have to hire search engine optimization
(SEO) and pay-per-click advertising specialists, such as another
New Zealand firm called Pure SEO. PartnersWe will process the data
that will be given to our customers but we will not collect it. The
data will come from parking operators such as Wilson Parking. They
will give us their data of the prices and availability of their
parks, which is an essential component of our product. They will in
return benefit from our publicity. The increase of awareness of
potential customers will enable Wilson Parking to minimise car park
vacancies. Another parking operator is Auckland Transport. AT
Public also operates the public transportation around Auckland.
They will benefit from alternative public transport options when
limited parking is available.3.6 Strategy: Cost LeadershipThe
mobile application is a new industry, which often does not profit
directly from the customers, more than 80% of the apps are free
(Alto, 2013). The user measures its opportunity cost: how much time
is required in order to benefit from the application. ParkMe will
have a cost leadership strategy because broad market competitive
scope: the app will target everyone who has a smartphone and uses
parking which is broad as they are numerous. Secondly its cost
strategy will focus on low cost, by making the application
efficiency with a high benefit/time ratio.The overall strategy is
therefore Cost leadership3.7 Value Chain Activity: technology
developmentTechnology development is crucial for a mobile
application because its industry environment is technologically
driven. The standard of technology development for mobile apps is
very high. This is because that is what is most valuable to the
customer. ParkMes uses technology to manage, process and deliver
the data of parking availability, which is the customers product.
To be successful ParkMe will have to excel in constantly developing
their process automation and design. Therefore the most important
value chain activity for ParkMe is technology development.3.8
Business Processes3.8.1. Innovation and development process- In
order to compete with competitors effectively ParkMe will have to
innovate and develop its application on a constant basis. The
company will do so through by receiving feedback and reviews threw
our customer service department and then treating their problem
with our research and development team.
3.8.2. Efficiencies and optimazation process - In order to be
competitive ParkMe will have to be able to deliver data faster and
more accurate than its competitors. To do so the data analysis
department will first have to identify an inefficiency through KPI
data. If relevant and significant the development team will be
assigned a project to assess the inefficient.
3.9 Functionalities 3.9.1. Innovation and development process
Develop an innovative, well designed and competitive app. Develop
an app that meets all our customer needs and wants.3.9.2.
Efficiencies and optimization process Optimize the accuracy of
information we provide our customers through ParkME. Minimize time
delay of information Optimize precision of information3.10
Systems
3.10.1. Data mining system - Data measured based on the KPIs
will have to be collected from the various parking locations in
order to know where the inefficiencies lie in the
application.3.10.2. Data management system - The data will have to
be processed and managed in order to make it easier to evaluate it
and evaluate the data more clearly and assess its relevance and
validity.3.10.3. Customer service system The ParkMe are our
customers and we need to be sure that we offer them a product that
is better, faster, more accurate and easier to use than the apps of
our competitors. To do so we have to put a system in place where
they feel confortable to share any problem they encounter while
using ParkMe and record it.11
3.11. Summary Table: Value Chain to Systems
Value Chain ActivityProcessesFunctionalitiesSpecific Information
System(s)Broad Information System(s)
Technology Development1. Innovation and development process 1.
Customer service system
2. Data management system Customer service system
Data management systemOperational customer relationship
management system
Analytical CRM
2. Efficiencies and optimization process 1. Data mining
system
2. Data management systemData mining system
Data management systemAnalytical CRM
Analytical CRM
CONCLUSION ParkMe will provide parking availability awareness
through an easy to use and well-designed application. The app will
provide the customer with exactly how much and what information he
needs by processing large amounts of data provided by parking
facilities through information systems. To be competitive, ParkMe
will use information technology to constantly improve and develop
their app. ParkMe is an innovative app that will show success and
be used all over the world.
ReferencesAlto, P. (2013, 05 23). Top iOS and Android apps
largely absent on Windows Phone and BlackBerry 10. From Canalys:
http://www.canalys.com/newsroom/top-ios-and-android-apps-largely-absent-windows-phone-and-blackberry-10Auckland
Council. (2012, 01 25). Number of Parking and Loading Spaces
Required for the City Centre. From
https://www.aucklandcouncil.govt.nz/EN/planspoliciesprojects/plansstrategies/unitaryplan/Documents/Section32report/Appendices/Appendix%203.9.4.pdf
Netactive. (n.d.). What we can do for you. From
http://www.netactive.co.nz/what-we-doPure Oxygen. (n.d.). From
http://www.pureoxygenmobile.com/how-many-apps-in-each-app-store/http://www.pureoxygenmobile.com/how-many-apps-in-each-app-store/Pureeseo.
(n.d.). Online digital marketing. From
http://www.pureseo.co.nz/online-digital-marketingStackpole, B.
(n.d.). Your next job: Mobile app developer? From
http://www.computerworld.com/s/article/9217885/Your_next_job_Mobile_app_developerStamford,
C. (n.d.). Gartner Says Less Than 0.01 Percent of Consumer Mobile
Apps Will Be Considered a Financial Success by Their Developers
Through 2018. From Gartner:
http://www.gartner.com/newsroom/id/2648515Sutter, F. (n.d.).
Analysis of the app market based on Michael Porters five
competitive forces. From Triple Happiness:
http://3xhappiness.com/analysis-of-the-app-market-based-on-michael-porters-five-competitive-forces/Sweney,
M. (2013, april 30). Shazam chief aims to drive revenues into
'hundreds of millions' ahead of IPO. From The guardian:
http://www.theguardian.com/media/2013/apr/30/shazam-ceo-revenue-ipo
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