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Name Ashleigh Dryden
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Tutorial Details
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Are you tired of constantly nagging your flatmates to pay their share of the bills on time? If yes, you are definitely not alone. Countless numbers
of people living in flatting situations are not paying their bills on time each week/month. This is resulting in many negative consequences such
as stress and arguments within the household, people being billed by providers for late payments and then ultimately leaving the flat with a bad
credit rating. We plan to implement a new app that consolidates all of the bills in a household and collates the total amount owing. It then
divides the expenses up between each flat member and withdraws it straight out of their specified bank account automatically. Stress and
arguments regarding bills will now be a thing of the past in flatting situations.
3.1 Vision
To provide flatters with an effective, easy to use application that makes paying bills effortless, giving them more time to do the things they love.
3.2 Industry Analysis: The bill payment app industry
Industry: The bill payment app industry
Buyer power: Low Buyer power is low. This is because there are not
many options of which consumers can choose
from to pay their bills via an app. There are very
few bill payment apps on the market, however a
main alternative for consumers is the PG&E
Mobile Bill Pay app which helps consumers pay
their bills on time and manage their payments.


(Google Play, 2013).
Supplier power: Low There are many app software developers around
which this business could use to produce the app.
Many companys are now “constantly interviewing
and hiring new mobile application developers”
(Dew Mobility, 2012) hence this business would
have many options in terms of suppliers who
could help produce the billing payment app.
Threat of new entrants: High It does not take considerably large amounts of
time to produce a billing app and they do not
require large amounts of money, “an influx of
start-ups is enabling clients to create their own
iPhone apps on the cheap, with no programming
skills necessary.” (Ankeny, 2010) Additionally, in
2013 Apple announced there were 1 million apps
in the App Store (Ingraham, 2013) which indicates
that there are most likely low barriers to entry in
order to create a billing app.


Threat of substitutes: High Consumers have differing options on how to pay
their bills instead of using an app. For example,
these include using electronics such as internet,
phone or mobile banking, direct debit payments,
automatic payments or paying via bank cheques.
(Pritchard, 2014).
Rivalry among existing
Low Rivalry among existing competitiors is low as
there are not many currently in the bill payment
app industry to compete. (Google Play, 2013).
Overall attractiveness of the industry:
This Porters 5 forces analysis indicates that the bill payment app industry is a reasonably attractive industry. This is because buyer power,
supplier power and competitive rivalry are all low and this is favourable. The competitive forces in the industry are not too strong which
indicates that a business starting up in this industry has the potential to earn high profits. With this being said, the competitive rivalry could
potentially increase significantly in the near future as the threat of new entrants is high meaning more businesses might join the industry. This
would be negative for a start up business as an increase in competition can resullt in a decrease in profitability. Additionally, with the threat of
substitute products being high, consumers may simply not bother to change the way they make their bill payments. Therefore effective
marketing is crucial in this industry.


3.3 Customers and Thei r Needs
The customers of this new information technology system are people living in flatting situations who make regular living expenses payments to
their suppliers. Another type of customer for this app are students with low incomes who may be living away from home for the first time and
not yet used to paying bills themselves. Our customers‟ needs include paying their expenses on time regularly to each provider. This is to avoid
the consequences of late payments as “banks, finance companies, telcos, electricity, gas and insurance companies will be able to collect and
swap information showing how much credit someone has and how they are getting on with repayments… But a pattern of skipping – even on
small payments – could result in a negative score.” Our customers also need each flat member to contribute an equal amount to cover each
bill. No person(s) should be forced to cover another member‟s contribution if they cannot cover the cost that week. Additionally, as students
have very busy lives they need this payment process to be fast and reliable.

3.4 The Product and Service
This app will remove the complexity of gathering everyones contributions to pay multiple providers (e.g rent, power, water etc) on each of their
different due days. It is an easy payment process as once set up, it automatically collects the set monetary figure from each person living in the
household. It then divides this figure up accordingly and pays the multiple providers. Each flat member would have their own private account
under the flat account that they only they have access to. This would have their bank account details and a maximum total amount that can be
withdrawn from their account each month. This limit is to avoid the providers abusing the system. If the flat member owes more than this limit,
they will get a notification email and they can then authorise the additional payment if need be. This system would be a joint agreement
between the flat member and the provider, so clearly the providers would have to agree to participate in the contract. Although this would likely
be a time consuming task initially, we see no reason as to why providers such as Mercury Energy, Genesis Energy, Vodafone and Telecom
would not agree to take part. This is because as well as the system being of great value to consumers, suppliers would be receiving their
income on time thus reducing their allowance for doubtful debts.


3.5 Suppliers and Partners
1. Apple would definitely be the key supplier for this app. This is because through the App Store, Apple would release this new app to
consumers. Apple would provide the means as to where this app will be purchased.
2. MasterCard could also be a supplier as they have differing services to offer which would benefit this business. These include marketing
support services as they could help the company “market bill payments with step-by-step guidance and tactical tools such as copy templates
for your newsletter, e-mail, advertising, and other communications.” Additionally, MasterCard could supply the company with a valuable feature
known as the „MasterCard Automatic Billing Updater.‟ This would support the business in ensuring they have “up to date cardholder data for
recurring transactions” which filter through data finding expiration dates and so on.

1. Vodafone New Zealand which offers phone, mobile, internet, TV, Broadband and other services would be a large potential partner for this
business. In January 2013 it was stated “Vodafone is still the biggest local carrier with 2.37 million customers” in New Zealand. Vodafone could
be one of the partners to sign a joint agreement to involve themselves in the information system as they will likely see an increase in customers
paying their bills owed to Vodafone on time.
2. Mercury Energy could also definitely be a partner of this business as it is one of New Zealands leading electicity companies. Many people
living in flatting situations would be using Mercury Energy to supply their household with power. The company is a typical provider for many
people and if they were to agree to sign up to the contract system, they would benefit as they would see a huge decrease in „bad customers.‟
3.6 Strategy: Cost Leadership
The Porters Generic Strategy that will be used to sell this app is cost leadership. This is because this product has a reasonably wide scope as
people living in flatting situations make up quite a large market in New Zealand. I have chosen this strategy as paying bills is something that


must be done therefore this app would interest a large proportion of consumers. Additionally, creating this app would be require low start up
costs hence we will reflect this for the customer also.
3.7 Value Chain Activity: Market and sell the product or service
Market and sell the product or service is the most important because the product is an electronic app, it is not a retail shelf product therefore
attracting customers to purchase this new app will be one of the biggest challenges of this business. Via effective marketing we will
demonstrate that we are using a cost leadership strategy as consumers can download the app for a one-off low price. This is the most
important value chain activity as it is critical we develop brand awareness for this app as a lack of customers ultimately results in a lack of
profitability meaning the business could make a loss.


3.8 Business Processes


3.9 Functionalities
3.9. 1. Market research process
 Identify consumer behaviour patterns towards bill payments in flatting households
 Indicate an appropriate cost price for the app
3.9.2. Sales purchasing process
 Receive credit card details of customer in order to make payment for app
 Provide email receipt to customer to confirm payment of app
3.10 Systems

3.10. 1. CUSTOMER PAYMENT SYSTEM – This system will support the function of receiving the credit card details of the customer in order to make
the payment for the app. This is a transactional processing system which will enable the business to make the payment process convenient for
the consumer. This is an essential system for the business as if the payment process was too complicated, the consumer may not follow
through the process. Therefore this system is needed to ensure the company maximises profit potential by “giving consumers more time to do
the things they love.”
3.10. 2. ORDER PROCESSI NG SYSTEM - This system which will support the business with the function of providing an email receipt to the
customer to confirm the payment of the app (validating the order).
3.10. 3. RESEARCH GATHERING SYSTEM- This system will help support they key functionality of identifying consumer behaviour patterns which
falls under the market research process. This system is definitely important for the business so it can effectively collect information from
consumers, for example through surveys, polls, interviews etc. Additionally, it is needed to ensure the business does not see a duplication of


the recording of these consumer behaviour patterns. Productivity could also potentially decrease if this system was not in place as it could take
the marketing department much longer to collect consumer information relevant to marketing.




1. Ankeny, J. (2010, January-15). Creating i-Phone apps on the cheap. Entrepreneur.
Retrieved (May 25, 2014), from
2. Dew Mobility. (2012, September). The Competitive Mobile Application Industry. Dew
Software Inc. Retrieved (May 25, 2014), from
3. Gibson, E. (2012, March). Your credit history up for scrutiny. Stuff. Retrieved (May 21,
2014) from
4. Ingraham, N. (2013, October-22). Apple announces 1 million apps in the App Store,
more than 1 billion songs played on i-Tunes radio. The Verge. Retrieved (May 25, 2014),
5. Jericho. (2013, January). Smartphone market share and mobile internet use in New
Zealand and Australia. WordPress. Retrieved (May 25, 2014) from

6. MasterCard Worldwide. (2006). Bill payment for Service Industries. MasterCard.
Retrieved (May 21, 2014) from
7. Pritchard, J. (2014, January). How do I set up online bill pay? Retrieved
(May 21, 2014). From