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Name Gligor Kostovski
NetID gkos450
Group Number: 265
Website Link:
Tutorial Details
Tutor: Day: Time:
Olivia Shultz Thursday 9am
Time Spent on
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The problem is public queuing in shops. This phenomenon of queuing in shops and retail
stores is a prevalent problem because it not only affects all shoppers but also eats away
their valuable time. My solution is to sponsor certain retail shops by installing a ‘thermal
sensor people count’ – that counts the number of people in a store in real time. This data is
captured in the sensor and then transmitted to a smart-device application (Q-down) that
provides the number of people in a store through periodic updates. The user of the Q-down
app will then be able to decide whether to enter the store in a particular time or not.
3.1 Vision
“To provide the greatest timekeeping tool for humans by developing a sixth sense -
unprecedented awareness!”
3.2 Industry Analysis: Mobile Retail Monitoring Industry
This incorporates the ‘retail monitoring industry’ and the ‘mobile application industry.’
NOTE: there are variations in product offerings; Q-down acts as a public-queuing monitor,
others provide submissions to be in a queue.
Force: High/Low: Justification:
Buyer power: Moderate Although not many retail monitoring apps are
around, there are an increasing number of apps
(mostly free) that try to solve the problem of
shop queuing by allowing customers to ‘submit’
to be in a virtual queue (Null, 2013).
Supplier power:
(2 products –
1.) Low &
2.) Low
1.) There are an increasing number of suppliers
that offer people-counting technology. Many
variations exist, for example company Irisys
provides a business-tailored program (InfraRed
Integrated Systems Ltd., 2014), whereas
SenSource’s products provide simple people-


APPLICATION) queuing technology (SenSource Inc., 2013).
2.) To create the app will mainly require a
platform developer (i.e. Platforms are iPhone,
Android, Blackberry, etc.). The number of these
developers has increased dramatically from
2009 (Shweta Jain, 2011).
Threat of new
High Established app stores are difficult to get into
(e.g. Apple, Google). However the
MobileRoadie program allows users to build an
app with little cost and time used. Therefore
building a retail monitoring app is becoming
easier (MobileRoadie, 2013).
Threat of
High There is a large number of ticketing kiosks that
reduce the queuing phenomena. Substitutes
include website queuing submissions and the
use of physical tickets – supported by a digital
projection of “who is up next” (Queue Kiosk,
Rivalry among
High A source says that Android apps between the
years 2009-2011 have grown in sale just over
860% year-and-out. Due to this intense
competition it also has meant that the average
selling price of the apps have decreased, many
becoming free (Shweta Jain, 2011).
Overall attractiveness of the industry: Building the product is becoming easier with the
abundance of resources that are becoming cheaper. I.e. making the app and hiring a


platform developer is becoming cheaper. However one major difficulty exists; mobile app
prices are sinking dramatically.
Recommendation: Profitable if you can differentiate your app with a variety of features with
different value dimensions to it (i.e. broaden your market by offering many different types
of features).
3.3 Customers and thei r needs
The main target market is shoppers who currently have a smart-device; therefore customers
would usually range from ages 10-40yrs. However the market would grow as: (1) everybody
shops; (2) new generations will become more familiar with the functionalities of smart-
One of the most significant needs of a shopper is to have a short queuing time (Stone,
2012). According to M.I.T researcher Richard Larson, world expert on the psychology of
lines, “occupied time feels shorter than unoccupied time” (Stone, 2012, para. 4).
Another significant need for these customers is the functionality component of an app. If an
app doesn’t work properly, negative reviews are posted and can easily make a potential
customer avoid downloading it. E.g. Qender Mobile Queue app (Apple Inc., 2014). Such
persuasion by reviews is extremely effective, especially due to the fact that most retail
queuing apps are free with no switching costs (Shweta Jain, 2011) – therefore a customer
would value the apps functionality very highly.
3.4 The Product and Service
 Problem 1 solution: where shoppers have access to the number of customers in a
store with Q-down; they’re effectively solving the problem of queuing by choosing
not to enter a shop when it’s too busy.
 Problem 2 solution: to reduce the chances of functionality failure of the app, there
are two aspects to look into:
#1: People-count sensor
- Avoid battery-powered sensors as batteries have lives. Instead install wired-
sensors powered by the retail stores’ electricity.
- Avoidable distance from human interaction.
- Good quality sensor.
#2: Application
- Hire good quality platform developers.


3.5 Suppliers and Partners
#1: SenSource: providers for standard people-counting sensors.
They offer sensors that once installed can accurately record the number of people that
enter and exit a store. However the majority of their products only provide basic real-time
counting functions (SenSource Inc., 2013).
#2: Irisys – IRC303X Dual View: providers for sophisticated people-counting sensors.
Their sensors not only give a real-time people-count, but can also provide a digital
projection of what the customers’ movements are around a store. I.e. Such projection can
then be viewed from a Q-down user, analysing which part of the store the customers’ are
attracted to the most (InfraRed Integrated Systems Ltd., 2014).

Figure1: IRC303X Dual View (Source: InfraRed Integrated Systems Ltd., 2014)
#1: Westfield shopping centres
- Your benefit: You must have people-counting sensors in specific stores.
Therefore you have to have a number of retail outlets that would sponsor the
installation of the sensor in their shop.
- Their benefit: If the majority of usual shoppers used Q-down it would mean that
shoppers would enter their desired store for shopping at a time where queuing is
minimal. This would mean that large populations in stores would decrease,


allowing for Westfield security guards/cameras an easier way for detecting
#2: Retail store managers
- Your benefit: The increased chance of ‘head-office’ sponsoring the people-
counting sensors in their shops.
- Their benefit: When managers use Q-down, especially HR managers, they could
have averages of the number of customers in shops in proximate areas. This
would allow HR managers to allocate the optimal staff on the floor during the
3.6 Strategy: Cost Leadership
Competitive Scope: Broad market
The target customers consist of two components: (1) they’re shoppers; (2) they have a
smart-device. This market is broad as nearly everyone is a shopper, and if not shoppers
themselves they could still provide information to their friends/family. i.e. a 13y/o telling
their mother where the least busy shops are. Adding onto this, the number of smart-device
users is increasing dramatically (Shweta Jain, 2011).
Cost Strategy: Low cost
Is low because with reference to 3.2; competition is high. The main reason for this is
because the price of retail monitoring apps (and apps in general) is decreasing; and this is
ultimately due to the fact that the industry is becoming cheaper and easier to enter.
The overall strategy is therefore Cost Leadership.
3.7 Value Chai n Activity: Research and Development (R&D)
The most important value chain activity for this business is R&D.
As the industry is easy to enter, and this being a testament to the cost-leadership strategy,
price competition among competitors is fierce. Therefore in order to provide a competitive
strategy in this industry the company must differentiate their product by constantly
releasing news features and dimensions of value in the app to their customers.
R&D links with the vision segment of developing “unprecedented awareness” as for
something to be “unprecedented” would mean to provide unrivalled “awareness” for our
customers, and something the competitors can’t match.


3.8 Business Processes
3.8.1. DEVELOPING FEATURE PROCESS - This process is very important because to develop a
new feature on an app will require an error-free and valuable feedback process from their
suppliers on feasibility; as well as an emphasis on the speed required in making features
regularly; and the minimal steps are a testament to that.

Formally model and
design a new app
feature via diagrams
Send designs to
platform designers
Does the design require
transformations/upgrades to the
Initial development done
Send designs of feature to supplier of
sensor (SenSource)
Are transformations to sensors
Design and technical support department
Design and technical support department
Application design system
Application design system


3.8.2. BETA-TESTING PROCESS - This process is critical because prototyping a feature will
require a heavy emphasis on not only the composition of the test-candidates, but also
reliance on the values and needs that their potential customers have on new app features.
Therefore this process would rely greatly on two major steps: (1) customer feedback; (2)
redesign of app if major faults are evident.

Beta Q-down
Collect feedback
Evaluate feedback from
Does feedback require large adjustments/
redesigning to the Beta Q-down product?
Prototype (Beta) process
Redesign and
manufacture Beta
Customer service department
Customer service department
Customer service system
Customer service system


3.9 Functionalities
 MobileRoadie app/feature creation programme.
 Software capable of detecting unknown patents.
 Statistical software categorising and showing popularity of specific feedback.
 Software that compares ‘predicted’ customer necessities against ‘real’
necessities (after feedback).
3.10 Systems

3.10. 1. PATENT-DETECTI ON SYSTEM - This system supports the functionality of detecting
established patents in regards to app features that legally belong to a competitor. Such a
system is of great value to the company as detections will alter the decisional requirements
and strategies of the company in the form of redesigning an app feature that avoids copying
an established patent.
3.10. 2. FEEDBACK-MONI TORING SYSTEM - This system supports the ‘categorising of feedback’
functionality – which is of critical value to the ‘redesigning and manufacturing of Beta’ step
as it would focus on categorising negative feedback and then the system would determine
which specific feedbacks are important enough to consider redesigning the feature – given
the quantity of complaints. This monitoring system is committed to the vision segment of
providing the “greatest timekeeping tool.”
3.10. 3. SOFTWARE-COMPARI SON SYSTEM - This system, also known as WinMerge, compares
folders and files in a visual format that supports the functionality of comparing the
prediction of customer needs with reality (WinMerge, n.d.). Similar to the patent-detection
system, this system would alter the decisional requirements of the company in the form of
reconsidering what values/needs their customers really have – and then projecting this in
their next beta product.


3.11. Summary Table: Value Chain to Systems

Value Chain
Processes Functionalities Specific Information
Broad Information

Research &
1. Developing
1. MobileRoadie app/feature programe.

2. Software capable of detecting unkown
Application development

Patent-detection system
Decision support system

Decision support system

2. Beta-testing
1. Statistical software categorising and
showing popularity of specific feedback.

2. Software that compares ‘predicted’
customer necessities against ‘real’
necessities (after feedback).

Customer relationship

Collaboration system


To conclude, Q-down competes in the mobile retail monitoring industry and is unique as it
combines a people-counting technology to a smart-device application. If used by rational
consumers, it would decrease the problem of shop queuing by allowing shoppers to allocate
their time accordingly with respect to the busy trade hours. The value in IT is evident when
the people-count data is captured in the sensor and then transmitted to a smart-device that
would provide the number of people in a store through periodic updates.

1. Christopher Null. (2013). Mobile queuing app promises to take the pain out of
waiting in line. Retrieved from
2. InfraRed Integrated Systems Ltd. (2014). People Counting. Retrieved from
3. SenSource Inc. (2013). People Counters. Retrieved from
4. Shweta Jain. (2011). Mobile applications. Retrieved from
5. MobileRoadie. (2013). Homepage. Retrieved from
6. Queue Kiosk: ST-PD series. (n.d.) Retrieved from
7. Alex Stone. (2012). Why waiting is torture. Retrieved from
8. Apple Inc. (2014). Qender Mobile Queue. Retrieved from
9. WinMerge. (n.d.). What is WinMerge? Retrieved from
10. InfraRed Integrated Systems Ltd. (2014). IRC303X Dual View YouTube video
(screenshot). Retrieved from