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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Robert Stirling
NetID rsti010
Group Number: 040
Website Link: http://infosys1102014fcgroup40.blogspot.co.nz
Tutorial Details
Tutor: Day: Time:
Kayur Ramson Monday 1pm
Time Spent on
Assignment:
25 hours Word Count: 1642

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DONATION FACILITATING MOBILE APP
INTRODUCTION
Our core problem was poverty in New Zealand and the severe impacts it had on those
people in suffering from poverty (e.g. poor education and health outcomes). The solution
we came up with was a mobile application that customers could link any credit or debit card
to and then use this card at participating clothing stores where they could receive a portion
of the sale back and then use the app to donate the money they earned back to their
chosen charity.
3. BUSINESS SECTION
3.1 Vision
To provide a useful, practical and low cost way for people everywhere to donate to those
in poverty in order to make the world a better place.
3.2 Industry Analysis
Industry: Charity Mobile App Industry.
Force: High/Low: Justification:
Buyer power: High Many charities are joining this industry as they
can increase donations, raise awareness and keep
donors up to date with developments (Nash, P,
2014). Because there are many choices,
customers are able to influence prices by driving
them down. Switching costs are also low as the
cost involved with changing to another app is
small.
Supplier power: High There is not enough mobile developer talent to

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feed consumer and enterprise demand for apps,
(Omojola, A. 2013). This indicates that supplier
power is high as the demand for mobile apps
exceeds supply; therefore the quantity of
suppliers is low and mobile app developers are
able to charge higher prices and shift costs to
industry participants.
Threat of new entrants: High Roughly 64.8% of respondents of a survey done
by AnyPresence Inc (2013), reported that the cost
of development for an app was less than
$100,000; which indicates that there are
moderate to low capital requirements. The
barriers to entry are low, according to Ken Stern,
2013, 99.5% of all charitable organisation
applications were approved in recent years.
Threat of substitutes: High People can set up a monthly donations straight
from their bank account, donate online through a
website as well as donating through mail, over
the phone, by texting or in person (Red Cross,
2014). With so many ways to donate, outside the
charity mobile app industry, the threat of
substitutes is high.
Rivalry among existing
competitors:
High
The current rivalry is fierce among existing
competitors. There are many charities competing
for limited donations. There is little brand loyalty
as donors prefer to spread their donations across
different charities and often choose a charity
based on practical considerations (Highfield, V.

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2013).
Overall attractiveness of the industry: Not particularly attractive, as all of the 5 forces have
high power, however, this is to be expected in a charity driven industry. This indicates that if
suppliers raised their prices it would be difficult to switch supplier, the high threat of new
entrants means potential investment capital can be stolen and the many substitutes can
steal customers. Also, customers are able to spur rivalry and drive down prices due to many
choices being available. (Baltzan, P. 2013)
3.3 Customers and Thei r Needs
One customer group is clothing buyers. Their needs are to purchase clothes. Whether it be
through necessity or pleasure, buying clothes is important, which can be seen from clothing,
footwear and accessories sales being up 9.9% in the last quarter of 2013 (NZ Herald, 2014).
Another customer is charitable people. Their needs are being able to contribute to reducing
poverty and a recent poll (Wydick, B. 2012) indicated that the most popular strategies for
helping the reduce poverty were providing clean water, donations, medical aid and
volunteering.
3.4 The Product and Service
For clothing buyers, they are able fulfil their need of purchasing clothes while also donating
money at the same time. Giving to others while doing what theyre already doing and
without using any of their own money, gives them a reason to do more of what they love to
do; buy clothes.
This mobile app ensures that charitable people who enjoy giving to those who are less
fortunate are given a means by which they can easily donate money to. Buy just
downloading the app they can easily donate money after buying from participating stores
with just a click of a button.
3.5 Suppliers and Partners
One supplier would be mobile app developers. We would need to outsource their services
for programming the application. For example, either a freelance contractor would need to

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be hired to develop the product or the services of a development company would need to
be paid for.
Another supplier would be a mobile app designer who would be needed to design the
layout and interface of the app before we get it developed. For example, we could
outsource the service of an app designer who could design key interactional and visual
features for the app.
The use of e-business through an information partnership with clothing stores would help us
collaborate over the internet, where, for instance, the customer makes a purchase and the
clothing stores transaction processing system will notify the customer through our app, via
our customer management system, how much cash they have earned back from the sale
which they can donate.
Partnerships with charities will be nessecary to allow customers to choose their preference
to donate money to. This would likely require a core competency strategy. We will focus on
what we do best; attracting customers to clothing stores, however, we need a charitys
specialized sevice of distributing the money customers donate to those in need.
3.6 Strategy
It is a broad market competitive scope because we are targeting people everywhere, in
reference to our vision. Our target customer group of clothing buyers make up a large
segment of the market.
It is a low cost strategy because we are offering a low cost way for people to donate. The
money they donate comes out of the clothing sale, not their own money.
The overall strategy is therefore Cost Leadership Strategy.
3.7 Value Chain Activity
The most important value chain activity for this business is Technology Development (and
R&D)

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This activity is critical for developing a technology-based product at the lowest cost possible.
In todays technology driven society, this activity allows us to reach out to people
everywhere in a broad market, with a useful and practical technological tool, in the
words of our vision. These factors mean we must perform this activity in a way that creates
more overall value than our competitors.
3.8 Business Processes
3.8.1. APPLI CATI ON TESTI NG PROCESS - Firstly, the product must be identified using a
product processing system, then the research and development department will establish
criteria for the product to meet in order for it to pass. Subsequently, they will run a series of
tests evaluating the functionality, quality assurance, and performance of the product. After
this, a decision will be made as to whether the product passed the tests using a test
processing system. If it does pass, it is ready to be sold, if not, modifications must be made.


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3.8.2. RESEARCH GATHERING PROCESS - The first step involves our research and development
department conducting some type of study (e.g. on target customers or competitors). The
next step is for them to collect the results of this study using a research management
system. Then they will analyse these results for research. If there is a request for this
research, they will report the findings to the relevant functional area of the organisation
using the research management system.


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3.9 Functionalities
3.9.1. APPLI CATI ON TESTI NG PROCESS
Identify the product being tested.
Identify whether the product has passed the test.
3.9.2. RESEARCH GATHERING PROCESS
Collect results from the study for research.
Send research findings to functional areas.
3.10 Systems

3.10. 1. PRODUCT PROCESSING SYSTEM - This system is able to identify the product that is
being tested by presenting the user with inforamtion about the product so that the user can
make decisions more easily on the passing criteria for the test. This supports the vision by
ensuring that the app is useful to people everywhere with assurance of the best quality,
performance and functionality.
3.10. 2. TEST PROCESSING SYSTEM - This system is able to identify whether the product has
passed the testing, ensuring that the product is useful to people everywhere in terms of
its performance, quality etc. It also involves some form of decision-making, as it must review
the results the product received from the testing to see if it met the passing criteria, which
enables a decision to be made as to whether the product has passed.
3.10. 3. RESEARCH MANAGEMENT SYSTEM - This system is able to collect results from the
study for research through gathering and storing the data until it ready to be analysed. It is
also able to send research findings to functional areas by sending and sharing information
across departments. By incorporating these functionalities, it supports the vision as using
research to improve the product can lead to innovations creating lower costs, and
increasing practicality and usefulness of the product.

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3.11. Summary Table: Value Chain to Systems

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

Technology
Development
and (R&D)
1. Application
Testing
Process
1. Identify the product being tested

2. Identify whether the product has passed
the test
Product Processing System

Test Processing System
DSS

DSS
2. Research
Gathering
System
1. Collect results from the study for research


2. Send research findings to functional areas
Research Management
System

Research Management
System
DSS


Collaboration System

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CONCLUSION
The use of IT is of extreme value to our business idea where we frequently process
information (e.g. app user transactions at particpating stores) and transfer (e.g. send
donation receipt to customer via app) and store information, all through technology. The
same can be said for IS, including the research management system, among others, which
support our technology development. Both of these allow us to enable people everywhere
to donate at a low cost.
REFERENCES

1. Nash, P. (2014). My top five charity smartphone and tablet apps. Retrieved from
http://www.connectassist.co.uk/2014/02/my-top-five-charity-smartphone-and-
tablet-apps/
2. Omojola, A. (2013). The Shortage Of Developer Talent Is Crushing Mobile. Retrieved
from http://www.forbes.com/sites/ayoomojola/2013/07/15/the-shortage-of-
developer-talent-is-crushing-mobile/
3. AnyPresence Inc. (2013). The State Of Enterprise: Mobile Readiness. Reston, VA, USA.
Retrieved from: http://www.anypresence.com/mobility-assessment.php
4. Stern, K. (2013). : Why Charities Are Failing and a Better Way to
Give. New ork, A . Knopf Doubleday Publishing.
5. Red Cross. (2014). Ways To Donate. Retrieved from
http://www.redcross.org/support/donating-fundraising/donations
6. Highfield, V. (2013). How to Build Loyalty in the Charitable Sector: Interview with
Oxms Hed Re Bnd. Retrieved from
http://www.totalcustomer.org/2013/08/09/build-loyalty-charitable-sector-
interview-oxfams-head-retail-brand/#sthash.aFBhMCXV.dpbs
7. Baltzan, P. (2013). Business Driven: Information Systems. NSW, Australia. McGraw-
Hill.
8. NZ Herald. (2014). Retail spend climbs - but less than expected. Retrieved from
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11204018
9. Wydick, B. (2012). Cost-Effective Compassion: The 10 Most Popular Strategies for
Helping the Poor. Retrieved from
http://www.christianitytoday.com/ct/2012/february/popular-strategies-helping-the-
poor.html