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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Tan Chee Oon (Cheryl)
NetID tche375
Group Number: 125
Website Link: http://infosys1102014fcgroup125.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Helen Chen Tuesday 11am
Time Spent on
Assignment:
25 hours Word Count: 1550

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CULTURAL EXPERIENCE TECHNOLOGY
TOOL (CETT)
INTRODUCTION
Over the past few decades, there had been significant increase in globalization across the
world. Despite people are interacting more with each other, there are many challenges
faced which causes ineffective communication. CETT is a cultural advisory app that provides
useful information for all kinds of cultures worldwide. The ultimate aim of this app is to
solve the problem of culture barriers between people, in order to facilitate interactions and
allow efficient communication.
3. BUSINESS SECTION
3.1 Vision
Our vision is to connect and unite people from different cultural backgrounds all around the
world, in order to increase effeciency in communication and globalization.
3.2 Industry Analysis: Cultural Advisory Application Industry
Industry: Cultural Advisory Application Industry. CETT is an application that provides easy
access to different cultural information which can easily be found on app stores.
Force: High/Low: Justification:
Buyer power: High In a recent study, Jones (2013) showed that
within about 1 million apps on Apple's App Store,
7.70% are business apps. This indicates that
buyers have almost unlimited choices of apps.
Therefore, buyer power in the industry is very
high when they have high bargaining power.

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Supplier power: Low Very often, more than one supplier are
demanded to develop an app, because more
ideas can be contributed. Meanwhile, Udemy
(n.d.) shows that there are online workshops that
teaches individuals to develop app by themselves,
which means that anyone can eventually become
an app developer. For advertising suppliers, there
are about 180 advertising agencies that can be
found in Auckland City (Localist, 2014). Thus,
supplier power is low due to having many similar
supplies in the industry.
Threat of new entrants: High As there are many suppliers that can provide
resources to develop apps, prices can be
negotiated and cost can be maintained at a fairly
low range. Therefore threat of new entrants is
high, due to low barrier of entry and low cost of
setting up a business.
Threat of substitutes: High There are many other substitutes within the
market. People can research on internet
websites, or simply asking a friend with a
different cultural background. Overall, the threat
of substitutes is high because there are many
other ways users can obtain the same
information that is needed.
Rivalry among existing
competitors:
High Rivalry among existing competitors is very high as
buyer power, threat of new entrants and threat
of substitutes are relatively high.

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Overall attractiveness of the industry: The cultural advisory app industry is less attractive
because of the high competition existing among the market.
3.3 Customers and Thei r Needs
The potential customers that CETT mainly targets on are business people. As many
businesses are expanding on global markets, the need of communicating with different
cultures is increasing. However, there are often culture barriers that reduces
communication effectiveness.
Kwintessential (n.d.) indicates that many British firms have faced challenges when
interacting with Asian companies. Most of the time, people lack the knowledge of different
cultural behaviours, and it is very time consuming to manually research on information.
Therefore, an application that provides useful cultural information is needed as it brings
convenience and saves time.
3.4 The Product and Service
CETT is an app that provides information on different cultures across the world. Extensive
search engines in the app allow information to be easily accessed. Users can key in the
interested culture, and state the event they are about to participate in. The app will then list
out notes that help users to acknowledge main concerns of the culture. Meanwhile,
translation function is also available.
CETT helps to save time of needing to go through tons of data sources from elsewhere. As
knowledge can now be easily captured, this will eventually yield efficiency of
communication between individuals.
3.5 Suppliers and Partners
As CETT produces online apps, its potential suppliers will be mobile app developers and app
store providers. App developers will help to create and design the app, and the final product
will be released on the app stores. They are identified as suppliers because there will be
payment from CETT to them for the services they provide. Smudge and Apple App Store are
examples of potential suppliers that CETT will work with. For example, Mackenzie (2012)

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indicates that there will be a $99 payment per year for apps to be distributed on Apple App
Store.
On the other hand, institutions such as University of Auckland and travel agency such as
Expedia are potential partners that CETT will be collaborating with. This partnership will
involve sharing of information, and also promoting each other as recommended references.
Therefore, this collaboration will not include any payment towards each other, but involves
sharing of mutual benefits instead.
3.6 Strategy: Differentiation Strategy
CETT produces unique applications which includes special features. Meanwhile, CETT also
targets a broad market with wide range of possible buyers. Almost anyone who want easy
access to information conveniently are potential customers of CETT.
The overall strategy is therefore differentiation strategy.
3.7 Value Chain Activity: Market and sell the product
The most important value chain activity for this business is marketing and selling the
product.
CETT's ultimate vision is to improve understanding of cultures between individuals. By
focusing on marketing and selling activities, the company uses the best way to promote the
app, letting as much people as possible to realize values the app brings. As CETT includes
updating the app regularly, the profit generated will also partly be used to improve on more
advance features being available to users.
3.8 Business Processes
3.8.1. ADVERTI SING PROCESS - As marketing is an important activity to the business,
promoting the product would certainly involve advertising. This process starts with
determining the objective of the advertisement. A media selection process will be taken
after that, to decide what type of advertisement it will be. Before contacting advertising
suppliers, a budget will be set according to the cost that the company can cover. This
process is done by the accounting department with the support of budget processing

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system. As the budget report is generated, details are then sent to advertising agencies to
draft advertisements. After receiving the drafts from agencies, those that exceeds the
budget will not be accepted. Finally, the last step will be officially releasing the
advertisement.


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Determine objective of
advertisement
Choose type of media
advertisement
Set budget
Send details to
advertising supplier
Accept proposed
advertisement
Release advertisement
START
Does advertisement
exceed budget?
END
No
Yes
Accounting Department
Budget Processing System
Receive advertisement
draft

3.8.2. PRI CE-SETTING PROCESS - In order to sell and earn profit, it is vital to set the correct
price at the correct timing. This process first start off with examining the pricing objective of
the current business situation. Marketing department will then collect and analyze data to
perform a market analysis. This is supported with the market analysis system. After that, the
accounting department will analyze total cost of the business with the use of budget

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processing system. By this point, a profit margin is set and the initial price is determined. If
this price can help to cover costs and produce satisfying profit margin, it will then be
accepted and the final price is set.
START
Examine pricing objective
Collect & analyze data on
market situation
Perform market analysis
Collect & analyze total cost
of company
Set profit margin
Set initial price
Set final price
END
Does price cover cost
&
satisfy profit margin?
Marketing Department
Market Analysis System
Accounting Department
Budget Processing System
Yes
No



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3.9 Functionalities
3.9.1. ADVERTISING PROCESS
Send details to advertising agencies
Check if the advertisement exceeds budget
3.9.2. PRI CE-SETTING PROCESS
Perform market analysis
Set an appropriate price
3.10 Systems

3.10. 1. ADVERTI SEMENT PROCESSING SYSTEM (APS) - APS support and facilitate the
advertising process of the business. When objectives are determined, the system generates
suggestions for media selection. It also send details to advertising agencies to draft the
advertisements. Meanwhile, budget reports generated by the accounting team is constantly
updated in the system. APS makes advertising process easier, and reduce latency of decision
making efforts.
3.10. 2. MARKET ANALYSI S SYSTEM - MAS analyzes the market by transforming collected data
into useful context to help make useful decisions. This includes producing insights of
economy situations and updates of price changes and actions of competitors. The important
function of this sytem is that it allows the business to understand its position within the
market, and helps managers to make decisions in a shorter time frame which gives the
business a competitive advantage.
3.10. 3. BUDGET PROCESSING SYSTEM (BPS) - BPS analyzes financial records to produce budget
reports for busienss planning purposes. Data such as costs and revenue are recorded, and it
goes through steps of calculations to forecast budgets. This system includes many
automation processes because similar calculation methods are used most of the time. BPS
helps to reduce time, and allow managers to plan things ahead to keep the business running
productively.

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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)

Market and Sell
Product
1. Advertising
Process
1. Design and create advertisement

2. Check if the advertisement exceeds
budget
Advertisement Processing
System
Budget Processing System
Decision Support System

Transaction Processing
System
2. Price-setting
Process
1. Calculate cost of business

2. Set an appropriate price
Budget Processing System


Market Analysis System
Transaction Processing
System

Enterprise Information
System

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CONCLUSION
Due to the differences in cultural norms across many groups of ethnicity around the world,
challenges are faced and communication are disrupted. CETT aims to improve
understanding of cultural differences in order to facilitate efficient communication. With the
use of information systems, CETT is able to deliver value by reducing latency and
automating processes to produce more desirable results. Advancement in technology had
certainly impact modern business processes, but have provided ways to make things work
more efficiently.
REFERENCES

1. Jones. (2013). Apple's app tore about to hit 1 million apps. Retrieved from
http://www.forbes.com/sites/chuckjones/2013/12/11/apples-app-store-about-to-
hit-1-million-apps/

2. Kwintessential. (n.d.). Cross cultural challenges to british business. Retrieved from
http://www.kwintessential.co.uk/cultural-services/articles/cross-cultural-
challenges.html

3. Localist. (n.d.). Advertising agencies in Auckland. Retrieved from
http://www.localist.co.nz/auckland/advertising-agencies

4. AMackenzie. (2012). App store fees, percentages, and payouts: What developers
need to know. Retrieved from http://www.techrepublic.com/blog/software-
engineer/app-store-fees-percentages-and-payouts-what-developers-need-to-
know/#.
5. AUdemy. (n.d.). How to build a mobile app. Retrieved from
https://www.udemy.com/how-to-build-a-mobile-app/