Name Joshua Lee NetID jlee956 Group Number: 240 Website Link: http://infosys1102014s1group240.blogspot.co.nz Tutorial Details Tutor: Day: Time: Kit-Wah Wednesday 12PM Time Spent on Assignment: 40 hours Word Count: 1617
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2 1T-0 1ST TIME OUTFIT INTRODUCTION More than ever there is a pressure to conform to societys norms and its developing trends. The fashion industry is a 1 trillion, 200 billion dollar industry and it continues to grow (statisticbrain.com, 2013) Changing trends and a trillion dollar industry, people just do not know how to get dressed fashionably and timely. Thus we have created 1T-O an evolutionary app, to aid the user to get dressed fashionably effectively and timely. 3. BUSINESS SECTION 3.1 Vision 1T-O believes in the power of fashionable attire. 1T-O will be the best fashion software application, cutting out waste. A tailored experience will meet the users needs and develop alongside an ever-trending world. 3.2 Industry Analysis: Fashion Application Software
Force: High/Low: Justification: Buyer power: High Buyer power is high in the Fashion application software industry. Consumers have many choices to choose from, such as 123dress me and dressapp. (itunes.apple.com, 2014) Supplier power: Low Supplier power is low there are many companies who are capable to create this application. A study found that there are an estimated 11 million professional software developers
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3 (infoq.com, 2014) Threat of new entrants: High Threat of new entrants is high, as it is relatively inexpensive and low barriers to entry to the industry. Threat of substitutes: Low Other substitutes are hiring a personal stylist which are expensive, for example cobystyledme.co.nz charges from $110-$230 per hour (cobystyledme.co.nz, 2014) Some stylist earn up to $300,000USD meaning that there services are only available to those with the means to do so. (seventeen.com) Rivalry among existing competitors: High There is relatively high rivalry among existing customers. This is because there are many companies in the current market. Overall attractiveness of the industry: The overall attractiveness of the fashion application industry is medium. There are many existing competitors and with low barriers to entry. Buyer power is high with many choices for consumers. Positively there are very little economical substitutes available. More specific to 1T-O, we can create a first mover advantage scenario in the extra features that 1T-O app possesses which currently arent available in the market. Patents could be created for specific features to stop new entrants or current competitors copying and create competitive advantage to reduce negative effects in the industry.
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4 3.3 Customers and Their Needs 1T-O will target males and predominately females that fall within an age group of 13-50. We believe clothing is an ongoing experiment and that there are strong external factors that affect decisions, such as friends, media, school or work, to what is fashionable and ultimately effecting clothing choices. (livestrong.com, 2013) According to the American Academy of Paediatrics Health Childrens website media influence is so evident that fashionable clothing is shown in 4/5 teen magazines. (livestrong.com, 2013) With great pressure to conform to societies norms users need a simple yet cost effective aid to help them dress in a fashionable way. Being fashionable can take time; users need a tool to help dress them quickly. The average woman takes 16 minutes to get dressed and takes at least 2 attempts before they are satisfied with their outfit, whilst men take 13 minutes to get dressed (Telegraph UK, Womans Health Mag) thus consumers need a time saving tool. 3.4 The Product and Service 1T-O has the ability to share a look onto social media outlets, so users can see what peers approve of. Our imaging frame that allows you to capture images of clothing within an outline, produce perfectly fitting clothing according to your measurements (height, waist,etc) Users can take photos of clothes found on a fashion blogs, Instagram, basically anything! Then virtually they can see what they would look like. 1T-O performs weather forecasts, which give you an indication on the amount of layers and type of clothing needed. A process required for the user is to capture images of their clothes to create a virtual wardrobe. You are able to create outfits and looks on your phone via the virtual wardrobe, this saves time as you dont have to manually try on and off clothes, which also reduces mess. Having a database of saved looks the user can simply choose a look they like and there dressed in minutes, in one go. The 1T-O app features are revolutionary and it addresses all the needs and beyond for our customers.
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5 3.5 Suppliers and Partners Suppliers: Weather Service Provider: Meteorological provider accuweather can supply live updates to 1T-O, covering weather internationally (accuweather.com) allowing users to check the weather and recommended clothing requirements. Software application developer- Smudgeapps a New Zealand software developer can supply 1T-O with developers who can create the application. (smudeapps.com) Partners: Clothing Brands- Via 1T-Os function look it up 1T-O could partner up with clothing brands, in a beneficially mutual way. For example the user looks up Nike shoes an advert could be placed from Nike. In return 1T-O will take a fee for every click on the advert. Social Media Outlets (Facebook, Instagram)- A user can upload looks on social media via 1T- O this gains reputation for the brand, but the social media outlet is also benefiting with the increased traffic from 1T-O customers. 3.6 Strategy: Differentiation 1T-O has chosen to use the differentiation strategy to compete in the chosen industry. The current market is drenched in mediocre applications, 1T-O plans to charge a premium price because of our innovative features; the value added from its uniqueness is able to justify the higher prices. These features will be protected through patents and IPs to give the company longevity. The overall strategy is therefore Differentiation (Broad Market, High Cost) 3.7 Value Chain Acti vi ty: Market and Sell the Product or Service 1T-O competes using the differentiation strategy, therefore marketing and selling is the most important value chain. 1T-O must create hype and educate customers about our
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6 product and why it is superior then competing apps. This will be able to justify our premium price. 1T-Os vision is the foundation of the core business and through marketing and selling the company we will be living proof of our vision. We will market to become the best fashion software application, to be user friendly and develop alongside new trends to create a tailored experience for all our customers.
3.8 Business Processes
3.8.1. MARKETING CAMPAIGN PROCESS - The marketing campaign process involves 4 key processes: Marketing Audit, Pricing, Market Research and Promotion/advertising. Under these umbrella processes there are more precise processes. This process is associated with the marketing department and also the financial department. The financial department will set a budget on the campaign for the marketing team. A collaboration system, which is an I.T based tool, could support the 2 department teams by sharing the flow of information.
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Finish Start Marketing Audit Market Research Pricing Promotion/Advertising (Campaign) Market Analysis Market Segment SWOT Analysis Profit & Loss History Price & Discount History Rates & Parameters for Price Price Analysis Consumer Needs Price Product Marketing Mix Marketing Strategy Marketing Channels Consumer Test Quantitative/Qualitative Tests Plan & Budget Place Promotion Implement & manage vendors Monitor Campaign
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8 3.8.2. SALES PROCESS The sales process for 1T-O is a relatively simple process and with BPR we have minimised steps. The department heads involved in supporting the sales process will include the finance and I.T department. The I.T department will be involved in supporting the download on to the users platform, and finance will take care of payment processing. A system like sales force automation will support this process by tracking all steps in the sales process.
Order Placed Credit Approved Check Credit Process Order Cancel Order Invoice Sent App Downloaded Payment processed Yes No Customer Contacted
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9 3.9 Functionalities 3.9.1. MARKETING CAMPAIGN PROCESS Market Identification Function. Monitor review and change marketing campaign after launch. 3.9.2. SALES PROCESS Accepting and processing payments from customers Gathering and saving customers details. 3.10 Systems
3.10.1. MARKETING ANALYSIS SYSTEM The marketing analysis system is an integral support function for market identification. The system will analyse market results/tests and will produce reports to help identify the correct market segment and the best way to entice these customers. This system will keep 1T-O inline in its vision to become the best in its industry serving the needs of our customers
3.10.2. MARKETING CAMPAIGN MANAGEMENT SYSTEM This marketing management system will manage the campaign after its release to the market. It will analyse the response from the public and will make any appropriate alterations to better suit our customers. This ongoing maintenance and check is directly intertwined with our vision to keep updating as new trends arrive and to meet those needs.
3.10.3. CUSTOMER DATABASE SYSTEM- The customer database system will support the function of saving and storing our customers details. By recording all the steps of the sales process and storing it 1T-O is able to target customers for specific advertising schemes and also easily see trends and history records without having to ask the customer. This system will support our vision to be the best and to serve a tailored experience for our users.
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10 3.11. Summary Table: Value Chain to Systems
Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s)
Market and sell a product or service 1. Marketing Campaign process 1. Market Identification function
2. Monitor, review and change marketing campaign after campaign release. Market analysis system
Marketing campaign management system Decisions support systems
Decision support systems 2. Sales Process 1. Accepting and processing payments from customers
2. Gathering and saving customers details from purchase. Payment processing system
Customer database system
Transaction processing system
Customer relationship management
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11 CONCLUSION 1T-O is about meeting the needs of customers who are currently being underserved. Thus becoming the best in the fashion software industry. Our aim is to be customer centric by tailoring needs for all our users and growing with customers and trends. Information systems and IT play a critical role by supporting our tangible business values and processes. Essentially IS and IT are intangible assets that serve as a business foundation for 1T-O REFERENCES
1. Fashion Industry Statistics. (2013). Retrieved from http://www.statisticbrain.com/fashion-industry-statistics/ 2. Business process flowchart diargram. Retrieved from http://www.businessballs.com/images/bpm-flowchart-diagram.jpg 3. Cobystyledme (2014) Business profile. Retrived from http://www.cobystyledme.co.nz/services/ 4. Erica Loop. (2013). Pressure on teens to wear fashionable clothes. Retrieved from http://www.livestrong.com/article/1002115-pressure-teens-wear-fashionable- clothes/ 5. Abel Avram. (2014). IDC Study: How many software developers are out there?. Retrieved from http://www.infoq.com/news/2014/01/IDC-software-developers/ 6. Metservice. (2014). Business Profile. Retrieved from http://www.metservice.com/national/home 7. Accuweather. (2014). Business Profile. Retrieved from http://www.accuweather.com 8. Smudgeapps. (2014). Business Profile. Retrieved from http://www.smudgeapps.com