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Name Tayla Court
NetID tcou762
Group Number: 256
Website Link:
Tutorial Details
Tutor: Day: Time:
Olivia Schultz Thursday 9am-10am
Time Spent on
16 hours Word Count: 1530



From 20102012, 12% of car crashes on New Zealands roads were a direct result of
distracted drivers; 179 of which were caused by cell-phone distraction. (Ministry of
Transport, 17/12/2013). With the use of smartphones increasing, distractions for drivers are
now increased due to new applications demanding constant attention. The solution to this
problem incorporates the new technological error, it is an app which uses information
systems to automatically disable the smartphone when the car engine starts, and re-start it
when the engine is shut off. This app reduces the risk of car crashes as the distraction of the
smartphone is removed, and therefore safeguarding New Zealands drivers from one leading
contributor to car crashes.
Sute3.1 Vision
To instil safe driving practices in the minds and actions of current and future drivers on New
Zealand Roads.
3.2 Industry Analysis: Smartphone Application Industry
Industry: Smartphone Application Industry
Force: High/Low: Justification:
Buyer power: High The two largest app stores, Google Play and the
Apple App store contain around 800,000 apps
each (Global Mobile Statistics, May, 2013) As
there is such a wide range of apps for a variety of
different purposes, buyer power is high as there
are plenty of apps to choose from.
Supplier power: Low Services such as (App maker for
Apple and Android n.d), make the basic creation
of apps simple for all. Therefore supplier power is


low as companies or other people interested in
developing applications have plenty of suppliers
to choose from, that range from a variety of
Threat of new entrants: High As the creation of apps requires little capital, the
threat of new entrants is high, because it is
relatively inexpensive to improve and develop
apps that better fit the needs of the user and
keeps up with new technology. (Industry Analysis:
Apple Smartphone Apps, Chapter 9)
Threat of substitutes: High Substitutes to apps can include mobile-based
websites, different mobile app platforms such as
android vs iPhone, and analogue products such as
paper calendars etc. (Suter, F. 2012). Therefore,
there is a wide range of substitutes for this
Rivalry among existing
High As there are so many competitors in the industry,
The competition for consumer attention is
fierce (Suter, F. 2012), this is due to the huge
amount of apps available on the market, so
applications need to be the best for the best
price, in order to generate sales.
Overall attractiveness of the industry: The overall attractiveness for the smartphone app
industry is low. Although it may seem attractive due to low start-up costs and high demand,
Low barriers to entry make the threat of new entrants high, and profitability reduced by
high buyer power, making rivalry highly competitive and the industry extremely


3.3 Customers and Thei r Needs
The target group of customers for this product is all New Zealand drivers who own a
smartphone. Drivers who use their phone while driving are 23 times more likely to be
involved in a car crash (NZ Transport Agency. Driver Distractions Infographic). Therefore,
with the amount of New Zealand drivers owning smartphones increasing, they now pose a
significant risk to the safety of all road users due to applications demanding attention at all
times. Our customers need a product which can prevent applications from causing
distraction when driving, to ensure their focus is on the road.
3.4 The Product and Service
Our application satisfies the needs of the customer by using information systems to disable
the smartphone when the car engine starts, meaning all txt messages and notifications from
applications will not notify the driver until the car is turned off. The AA claims that drivers
need to understand that hands-free mobile use is also dangerous as the driver is not fully
focused on the road ahead of them. For this reason, the app also prevents the phone
receiving phone calls. The app will also not allow the phone to be used or checked until the
engine has stopped. New Zealand drivers need a service that will remove the distraction and
temptation of a mobile phone while they are driving, and by syncing with the cars engine to
do this, the app provides a hassle free solution for drivers.
3.5 Suppliers and Partners
Suppliers to this product would be application stores and technology developers.
Technology developers will design the app and its according information systems, so it is
able to connect with a car engine, and recognise when it starts and when it is turned off, as
well as making the app available to be used on all smartphones. The application store will
also be a supplier to this product, as the stores such as iTunes and Google Play will provide
the service for the app to be purchased and downloaded by consumers.
The partners to this product will firstly be car companies such as Toyota and Holden. Car
companies will provide cars with the technology installed to be able to link the car engine


with the phone. Another partner will be mobile phone companies, which will provide
advertising and information to encourage their own customers to use the app.
3.6 Strategy: Cost Leadership
Our vision is to instil safe driving practices in the minds and actions of current and future
drivers on New Zealand Roads. Therefore, the app needs to be readily available to a broad
range of people. As there is a large amount of drivers in NZ, the competitive scope for this
product is broad. The application also needs to be available to all of these drivers, and there
must be little or no cost involved, to encourage all drivers to use it.
The overall strategy is therefore Cost Leadership.
3.7 Value Chain Activity: Market and sell the product or service
The most important value chain activity for this business is Market and sell the product or
To instil safe driving practices for all drivers on NZ roads, the key value chain activity is to
market and sell the application, to ensure drivers are aware of the app, what purpose it
serves and how it will make roads safer for all. As the business strategy is cost leadership,
marketing and selling the app is essential, to communicate the app to a broad range of
people and to achieve a selling price that all drivers can afford.
3.8 Business Processes
3.8.1. DEVELOP MARKETI NG CAMPIAGN PROCESS A strong marketing campaign will ensure
all NZ drivers are aware of the apps services. The campaign needs to be tailored to the
broad market of NZ drivers to ensure that the companys vision of instilling safe driving
practices in the minds of all drivers is accomplished.


Develop Marketing Campaign
Research customer needs
Does customer need
thi s product?
Re-develop/ tailor
product to customer
Create marketing plan
and budget
Select target audience
Trial campaign on focus
Does focus group
positivel y respond to
Run campaign
Research & Development
Technology Development
Budgeting System
Customer Research & Analysis System



3.8.2. PRICING PROCESS As the businesss strategy is cost differentiation, low costs are
essential to ensure that the product meets the companys vision. Therefore the Pricing
Process will establish a price to satisfy customers and cover the businesss costs.
Pricing Process
Budget costs associated
with developi ng, running
and mai ntaining product
Research how much
customer would pay for
Does the customers
demand price cover the
budget costs of providing
Determine price of
Accounting System Accounting
Research & Development Customer Research & Analysis System
Re-budget costs No


3.9 Functionalities
Analyse and draw conclusions from research
Assign available funds to campaign
Calculate cost of development, running and maintenance of product
Value the price of the application
3.10 Systems

3.10. 1. CUSTOMER RESEARCH AND ANALYSIS SYSTEM incorporates the Analyse and Draw
Conclusions from Information functionality, as it analyses the research provided to
recognise similarities, trends and discrepancies from the data, in order to draw a conclusion
on what the customer needs in the terms of this application.
3.10. 2. BUDGETING SYSTEM incorporates the assignment of available funds functionality as
it calculates the costs involved in developing the application, evaluates the costs needed for
the marketing campaign and then determines a suitable marketing budget, to achieve a
successful campaign.
3.10. 3. ACOUNTING SYSTEM incorporates the functionality of calculating the cost of
development, running and maintenance of the application. By determining all the cost
factors involved with producing, running and maintaining the app individually, the
accounting system calculates the total budgeted costs for providing the app, which will help
to determine the application price.


3.11. Summary Table: Value Chain to Systems

Value Chain
Processes Functionalities Specific Information
Broad Information

Market and
sell the
1. Develop a
1. Analyse and draw conclusions from

2. Assign avaliable funds to campaign
Customer Research and
Analysis System

Budgeting System
Transactional processing

Decision Support System
2. Pricing
1. Calculate cost of development, running and
maintainence of product

2. Value the price of the application
Accouting System

Decision Support system


In conclusion, the vision of the business is to instil safe driving practices in the minds and
actions of current and future drivers on New Zealand Roads. In order to successfully achieve
this goal, the company needs to focus on the value chain activity of marketing and selling
the product, so that the application can become recognised and then used by all New
Zealand drivers. The value of IS/IT in this organisation is essential in providing marketers key
information about what the needs of the customers are, as well as assessing the costs
involved to create marketing campaign budgets, and also to value the price of the
application, through the use of information systems that are imbedded in the business


1. Ministry of Transport (17/12/2013). Diverted Attention Crash Facts. Retrieved from
2. Global Mobile Statistics (05/2013). Global mobile statistics 2013 Section E: Mobile
apps, app stores, pricing and failure rates. Retrieved from URL:
3. (n.d) App Maker for Apple and Android. Retrieved from URL:
4. NZ Transport Agency (30/5/2013). Driver Distractions Infographic. Retrieved from
5. Industry Analysis: Apple Smartphone Apps. Chapter 9, Designing Business
Information Systems: Apps, Websites and More. Retrieved from URL:
6. Suter, F. (2012) Analysis of the App market based on Michael Porters 5 Forces. Triple
Happiness. Retrieved from URL:
7. Ministry of Transport (17/12/2013). Diverted Attention Crash Facts. Retrieved from
8. AA (n.d). Mobile Phones and Driving. Retrieved from URL: