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INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS SECTION2014

Name Min Jeong KimNetID 6007967Group Number: 020Website Link: http://infosys1102014fcgroup20.blogspot.co.nz/p/d1.html

Tutorial DetailsTutor: Day: Time:Claris Monday 12pm

Time Spent on Assignment: 17 hours Word Count: 1650

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MOBILE IDINTRODUCTION

Problem chosen for D1, which we wanted to solve was identity thievery. People know the

purpose of ID’s however lack awareness of their ID’s in the sense of not knowing how your

information could be used against you when in the hands of someone else. Therefore, our

group came up with a simple idea of making an app for mobile phones to store all ID’s which

could be used on the mobile tap and go machine (which is currently being developed by

eftpos NZ) and will only work on your mobile phone and will require your finger print.

3. BUSINESS SECTION

3.1 Vision

Our vision is to provide a safe and convenient way to store everyone’s personal IDs into one secure place to avoid identity fraud.

3.2 Industry Analysis: Mobile Payment Industry

Industry: Mobile Payment Industry. As our app is related to mobile transactions.

Force: High/Low: Justification:

Buyer power: High Buyer power is high because consumers have

may different types of m-payment apps to chose

from such as paypal, Mwallet, Zong etc (Deloitte,

n.b.)

Supplier power: Low As buyers have a lot of different m-payment

companies to chose from, supplier power is low.

Also as these different companies provide

different services, consumers can chose a

company which best suits them, leaving suppliers

powerless.

Threat of new entrants: High Threat of new entrants in the m-payment 2

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industry is high because as barrows to entry is

quite low. It does’t require a huge amount of

money however it is hard for companies to stay in

this industry as it involves a lot of trust between

the suppliers and consumers as it involves

moneys and although m-payment industry is

growing, consumers are still very skeptical about

the whole industry. (Charles, 2013)

Threat of substitutes: High This is because, as consumers are still skeptical

about this industry, a lot of people still prefer

cards. However, the m-payment industry is

quickly growing and companies are researching

ways to increase security and once consumers

trusts the system, a lot more consumers will

adopt the system. We can already see the growth

of m-payments despite the substitute of plastic

cards as research from Capgemini (2013) states

“Global non-cash payment transactions grew

8.8% in 2011” (Capgemini, 2013, pg 6)

Rivalry among existing

competitors:

High It is high because as more suppliers have moved

into this industry, suppliers are all researching

different types of features to their product by

adopting new technology and creating strong

relationships with banks so consumers will use

their product. (Chron, n.b.)

Overall attractiveness of the industry: is high as although their are a lot of highs in the

industry analysis due to increasing number of suppliers, according to Robert Shaftoe (2013),

mobile payment industry is reflecting “a major driver of growth for the payments industry”.

(Robert Shaftoe, 2013) showing an increase in demand for m-payment systems. Therefore if

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the firm can safely stay in the market-long term by having a strong business plan and a

competitive advantage through adopting new technology effectively, overall attractiveness

of the industry would be high.

3.3 Customers and Their Needs

The target group of customers for our solution are people who have ID’s and also have Smart phones this is because you need a Smartphone device to be able to use our app. Our customers’ need which is addressed through our app is that people need a safer, more convenient way to carry personal Ids. Survey by Beck Vass (2012) showed that “more than half of participants fear identity theft.” (Beck, V, 2012)This show that ID fraud is becoming an increasing problem in the society and people fear fraudster as they know their personal details aren’t safe.

3.4 The Product and Service

Our solution of making an app for id cards will satisfy our customers needs as our app will increase the security of IDs and will also provide convenience. Consumers will only be able to load their Ids onto one specific account which will only be available on one phone number at a time therefore, only that specific person will have access and be able to use their ids. Also the finger-print system acts like a password for the account therefore, as you tap and go through your mobile, the consumer will need to provide their finger-print to access their IDs. This system will the overall security of Ids as only one owner of the account will be able to securely provision the application.

3.5 Suppliers and Partners

Possible suppliers for our application are mobile app developers as we need someone to make and develop our app and also a fingerprint software developer as we need to include a fingerprint scanning feature in our app for reasons explained in section 3.4. Possible partners would be eftpos New Zealand Limited as they provide service for the tap and go machine therefore we need their technology to activate our app. Another partner would be companies who issues ID cards such as HANZ who provide 18 plus cards. We need their service to confirm whether the card holder is actually legal for the holding of the specific ID. Although our suppliers and partners both provide service in producing our app, they are different as our suppliers provide physical service to develop our product whereas partners provide mutual trust to work in collaboration in order to gain competitive advantage.

3.6 Strategy: Cost Leadership

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Porter’s generic strategy used for our soultion is the cost leadership strategy. Our app for

storing all ID information will be free or will be provided at very low cost therefore our cost

strategy would be low cost. The competitive scope for our app would be based on the board

market as it is for everyone who has smart-phones and any types of ID which could be

stored and used through our ID app. Although not everyone has smartphones, the reason

why it is in the board market is because there is a continuous increase in smartphone

owners. According to statistics NZ (2013), smartphone owners increased from 33% in 2012

to 60% in 2013 which shows you that the smartphone market is increasing rapidly to a much

boarder market. (Statisitcs New Zealand, 2013) Therefore the overall strategy is Cost

Leadership.

3.7 Value Chain Activity: Technology Development

The most important value chain activity for this business is Technology Development. Our

vision being able to conveniently store everyone’s personal Ids into one place and to adopt

to the cost leadership strategy, it would be very important for our app to efficiently store all

customer details without error to actually work conveniently and safely so no customers

personal details are leaked out to possible fraudsters.

3.8 Business Processes

3.8.1. ID EVALUATING PROCESS - ID confirming process is a crucial business process for our

app as part of our technology development, before consumers use our app, the details

provided by customers must be true, that it is their own ID, and legal to avoid any illegal

activities. Therefore we must confirm these ID’s with the company which issues the

particular ID.

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3.8.2. APP PROTOTYPINGPROCESS - This also is an important process we must go through as

we must test whether our app works accurately before officially releasing the app. We must

test that our app approves or denies an ID in appropriate situations.

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3.9 Functionalities

3.9.1. ID CONFIRMING PROCESS

Identifying different types of IDs. ID evaluation.

3.9.2. APP PROTOTYPING PROCESS

Selecting ID under a particular account for usage. ID is approved or declined depending on the situation.

3.10 Systems

3.10.1. ID EVALUATING SYSTEM – This particular system is require to incorporate the

functionality of ID evaulation. As IDs could be falsely provided by consumers, for the security

of all our customers and also due to legal issues, we must confirm with the company who

issues the particular ID, whether our customer actually is a holder of the ID.

3.10.2. ID TRANSACTION SYSTEM - This system supports the functionality of approving or

denying of IDs. For security and legal issues, this system will determine whether the

customer is actually legal to have or will do the activity they provided their ID for. This

system will also determine whether you are the actual holder of the ID by matching

fingerprints therefore if it doesn’t match, the holder who is providing the ID will get denied.

3.10.3. ACCOUNT DETAIL UPDATING SYSTEM - Our customers ID details could change due to IDs getting expired, no longer being a holder of a particular ID or owning a new ID. Therefore we need this system to update customers details accurately and on time. This is important as if their details don’t get updated, customer will not be able to use their ID and/or will still be able to use expired IDs.

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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

1. ID evaluating process

1. ID type identification.

2. ID evaluation .

ID identifying system

ID evaluating system

Collaboration System

Decision support system 2. App prototyping

process

1. Selecting any ID under account for usage.

2. ID is approved or declined depending on the situation and who has acess to it.

ID selecting system

ID transaction system

Collaboration system

Transaction processing system

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CONCLUSION

Overall, our app will safely our customers needs by addressing the problems or issues with

plastic cards such as ID thievery. Through the industry analysis, we can see that there are

many high factors but the growth and increasing value of the mobile payment industry

results in a attractive industry. Our app will have a cost leadership strategy as our app will

be provided at low cost to a broad competitive scope and our main value chain activity is

technology development as the development process of our product is crucial in being able

to achieve our vision of providing a secure and convenient way to story all ID cards.

REFERENCES

1. Capgemini, (2013). WorldPayments Report2013. United Kingdom:Autor Retrived from http://www.capgemini.com/resource-file-access/resource/pdf/wpr_2013.pdf

2. Deloitte, (n.d.). Mobile Payment A Deloitte Analysis. South Africa:Autor Retrived from http://www.deloitte.com/assets/Dcom-SouthAfrica/Local%20Assets/Documents/mobile_payment_ecosystem.pdf

3. Robert, S, (n.d.). Analysis of the Payment Industry. Retrived from http://smallbusiness.chron.com/analysis-payments-industry-77104.html

4. Charles, W, (2013). The Future of Mobile Payments. Retrived from http://www.penrillian.com/blog/industry-comment/future-of-mobile-payments

5. Michael, C, (2013). New Zealand Mobile Statistics 2013. Retrived from http://marketingweek.co.nz/2013/05/new-zealand-mobile-statistics-2013/

6. Beck, V, (2009). Eye scan backed to beat fraud. Retrievend from http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10604411

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