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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Mumu Ding
NetID mdin599
Group Number: 367
Website Link: http://infosys1102014fcgroup367.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Mira Tutor Friday 12am
Time Spent on
Assignment:
25 hours Word Count: 1567

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FITNESS APPLICATION
INTRODUCTION
Nearly 28% of New Zealanders are considered obese (New Zealand Statistic, 2013). As a core
problem, obesity has a number of causes such as emotional factors, environment and lack
of knowledge. Several symptoms can be tracked back to obesity that a number of deaths,
various health problems and extremely high health care costs. To help people avoid obesity,
a smart device application will provide individuals with guidance of physical activities and
diet plan.
3. BUSINESS SECTION
3.1 Vision
One of the best fitness applications for people who wants great body that create your own
custom routine plan to guide you achieve your fitness goal quickly.
3.2 Industry Analysis: Fitness Application Industry
Industry: Fitness Application Industry. Same as other mobile application, fitness
applications can be installed or download from the application shop and runs independently
on the device. It is a software application developed for digital products focus on helping
people to avoid overweight problem based on large professional database.
Force: High/Low: Justification:
Buyer power: High In the fitness application market, the buyer
power is high because there are lots of choices
for customers. According to Digital Activity
(2014), there are 27,522 Healthcare & Fitness
listed in the App Store which shows a large
number of alternatives. Compare each
application product, they have quite similar
function and design.

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Supplier power: Low The application developer is a main supplier of
fitness application industry. After layout the
applications functionality, a team of software
developer can translate physical experts
knowledge to actual application (Thomas, n. d.).
There are plenty number of application develop
company and hiring them is not difficult (Thomas,
n. d.). Therefore the supplier power is low in the
fitness application industry.
Threat of new entrants: High The market demand of fitness application will
expand to 63 present from 2012 until 2017
(Segundo, 2013). And it will lead a explosive
growth to the industry because of the low entry
barriers, which comes from normal technology,
common physical knowledge and low cost
(Thomas, n. d.). The threat of new entrants is high
because low entry barriers and high level of
demand.
Threat of substitutes: Low There are hundreds different products which can
sense health and fitness. However, fitness
application is better than other traditional fitness
trainer such as tracking system, larger database
and low price. In the Apple store, the normal
price of health and fitness app is around 5 US
dollars or free (Eddy, 2014). Therefore, the threat
of substitutes is low.
Rivalry among existing High Normally, a fitness application company has quite

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competitors: weak competitive benefit against other
competitor. And there are over 30 thousands
active installations in App store (Application
Category Distribution, 2014). All of them show an
intense competition between existing
competitors.
Overall attractiveness of the industry: The low barriers to entry, weak competitive
substitutes and increasing market demand are the main causes of high attractiveness of
fitness application industry. This industry is growing dramatically also because the wearable
technology is becoming mainstream such as smartphone, tablet and other smart devices.
The competition will be intense, however the quantity of installations will still be expected
to rise because strong potential market demand during the following years (Segundo, 2013).
3.3 Customers and Thei r Needs
Fitness applications focus on the group of people who do not satisfies with their body shape
and interested in fitness. Normally, the customer is considered overweight which caused by
inappropriate lifestyle. Download a fitness application into wearable device that can be
extremely useful and effective tool to encourage and monitor them to achieve their desired
body shape (Amodio, 2013).
People who are considered obese, they will need to get the target weight through a healthy
diet and advisable exercises. Therefore, professional advices to help them improve the
knowledge of achieving fitness goal are necessary such diet routines and detailed exercise
instructions based on individual body conditions, behaviours, age and hobbies (Segundo,
2013).
3.4 The Product and Service
The fitness application is a digital product which works on any smart devices. It includes a
large database such as plenty types of exercise descriptions, tracking workouts journal and

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professional diet plans. These information can be checked easily to guide, motivate and
monitor clients.
The workout installation is developed to provide user appropriate and customizable advices
depend on the individual specific weight goal. The customizable operating system will come
out several exercise and diet combo which combined professional physical knowledge and
personal information. The fitness application will make the customer create their own goal
and achieve their dream.
3.5 Suppliers and Partners
Two main suppliers of fitness application industry are programmer and interface designer.
The software programmer provides technology support, which is to transfer the original
knowledge materials that build the digital bridge to deliver the service value such as Moa
creative company. The application designer is to define the functionality and appropriate
image of a installation.
The biggest potential partner will be application shops. They provide the most official
platform that people can download, install or buy applications safely such as APP Store and
Play Shop. They also charge application supplier for income such Apple will charge 30% of
total application sale (Thomas, n. d.). Another important partner is physical science expert
who make the core material for the application such as professional diet and activities plan.
Normally, fitness application company outsource this unit such Body Fitness Apps.
3.6 Strategy: Focused Low Cost
For the competitive scope, the target market of fitness application industry is quite narrow
because the most is to focus on obesity. The centre function of fitness application is to help
people to lose weight and getting better body shape. It is why so many females install this
type of applications (Digital activity, 2014).
To produce a workout app, it has low original cost and maintaining cost. Such as Apple
store, there is only $99 charge per year (Thomas, n. d.). And most of the applications have

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quite low sale price and even for free (Eddy, 2014). Therefore, high cost strategy cannot be
acceptable.
The overall strategy is therefore Focused Low Cost.
3.7 Value Chain Activity: Make the product or service
The most important value chain activity for this business is Make the product or service
The vision statement mentioned the best fitness application, which is to help people getting
their fitness target quickly. To make application useful, operational, customizable and
effective, one key is the content of application about choosing the best alternative to
individual customer. In addition to this, great program design is also necessary that
associates with providing easy operation and understanding based on a large database of
professional knowledge.
3.8 Business Processes
3.8.1 APPLICATION DEVELOPMENT PROCESS The fitness application development process
combines digital technic development, market research results and physical professional
database. This process works on construct the installation that could works independently
to deliver the professional advices to customer.

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Start
Detailed designed
task
Prototype design
Prototype testing
Review feedback
Identify
impediments
Fail
Customer trial
Development
Satisfy
Unsatisfied
Approve
Frequent testing Identify problem No
Release
yes
End
Accounting
System
Marketing
Department
Physical expert Team
Physical expert Team Market reaserch System
Prototype design


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3.8.2. MARKET ANALYSIS PROCESS Before develop a new application, this process will
collect, classify and anlaysis market trend information to the technology and content design
department and transfer the broad idea to specific requirement to application developer.
Start
Market statistic
research
Classify, Analyze&
report
Information
Initial idea
consideration
Feasibility test Unforeseeable
Transfer the task
Foreseeable
End
End the idea
Save to document
Physical science expert
Physical science expert
Executive Management System
Application develop department
Application develop department
Market research System



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3.9 Functionalities
3.9.1. APPLI CATI ON DEVELOPMENT PROCESS
Demon release and test the prototype
Fix the bug after frequent test
3.9.2. MARKET ANALYSI S PROCESS
Gather market demand information
Notify the programmer to develop the application
3.10 Systems

3.10. 1. QUALI TY CONTROL SYSTEM This system is a cycle between testing and developing.
There could be plenty problems of a new application after testing and then, the technology
department need to develop each specific defect before release it on the application store.
This system is to make sure the application to be the best one.
3.10. 2. EXECUTI VE MANAGEMENT SYSTEM The executive management system aims to
gather both internal and external unstructured information for managerial decision making.
They offer strong reporting capability to identify trends and opportunities based on the
market research and industry database. And that helps high level executive analyse on the
more effective task selection.
3.10. 3. MARKET RESEARCH SYSTEM This system collects and classifies the basic market
information to represent potential trend and monitor the current marketplace. It provides
the initial requirement and idea to prototype design and that keep the application is based
on what customer wants.

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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)

Make the
product or
service
1. Application
development process
1.Demon release and test the prototype

2.Fix the bug after frequent test

Market research system

Quality control system
Transaction processing
System

Transaction processing
system
2. Market analysis
process
1. Gather market demand information

1. Notify the programmer to develop the
application


Market research system

Executive management
system



Transaction processing
system
Decision support system

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CONCLUSION
Fitness application is a smart device application, which recommends people how to get a
better body shape through customizable exercises and diet routine. The low entry barriers
and low threat of traditional fitness monitor cause the strong attractivness. The key value
chain activity of this industry is making the product or service. The application development
process and market research process are the main relevant business processes. To support
the functionalities of these processes, several information systems collaborate to satisfy the
customer such as quality control system and market research system. Build on all of them,
the initial defined issue would be transferred to the final product, and that add value on
each phase.
REFERENCES

1. New Zealand Statistics (2013). Obesity. Retrieved from
http://www.stats.govt.nz/browse_for_stats/snapshots-of-nz/nz-social-
indicators/Home/Health/obesity.aspx#info8
2. Amodio, M. (2013). Market Analysis Focuses on Fitness Apps, Wearable Tech.
Retrieved from http://www.wearabletechworld.com/topics/wearable-
tech/articles/347662-market-analysis-focuses-fitness-apps-wearable-tech.htm

3. Segundo, C. (2013). Sports and Fitness App Market to Expand by More Than 60
Percent in Five Years. Retrieved from http://press.ihs.com/press-release/design-
supply-chain/sports-and-fitness-app-market-expand-more-60-percent-five-years
4. Digital Activity Tracking Statistics. (2014). Retrieved from http://8bitfit.com/digital-
activity-tracking-statistics/

5. Hatler, M., Gurganious, D., Chi, C. (2013). Mobile Sensing Sports & Fitness. Retrieved
from http://onworld.com/mobilesensing/fitness/

6. Eddy, N. (2014). iPhone Apps to Help Track Your Health and Fitness. Eweek, 4.


7. Thomas, C. (n. d.). How much does it cost to develop an app. Retrieved from
http://www.bluecloudsolutions.com/blog/cost-develop-app/