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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Timothy Howlett
NetID 5461463
Group Number: 003
Website Link: http://infosys1102014s1group003.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Kit-wah Huang Monday 9am
Time Spent on
Assignment:
17 hours
Word
Count:
1499

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YOUR PERSONAL HANDBOOK TO
PREVENTING HANGOVERS
INTRODUCTION
Do you suffer from hangovers? Do you wish you could have a big night out and feel good
the following day? Now you can. Hangovers caused from drinking alcohol are a burden
to our society. In the US hangovers from excessive drinking cost the American economy
around $160 billion per year in workplace mistakes and lost productivity (Thompson,
2013). This innovative app we have designed is an aid in preventing hangovers. It is
unique as it not only alerts you when to drink water but also provides the latest ways to
also help prevent hangovers. This information is now at your disposal 24/7 and will
help reduce the burden on society.
3. BUSINESS SECTION
3. 1 Vision
To provide the latest information for preventing hangovers by using the most advanced
technology so our alcohol-drinking customers can take it with them everywhere they go
and reduce the burden of hangovers on society.
3. 2 Industry Analysis: App Industry
Industry: App Industry. Our product fits into the app industry.
Force: High/Low: Justification:
Buyer power: High There are over one million different apps on
iTunes alone creating a saturated market
with multiple versions of each type of
app(Preimesberger, 2013). Generally buyer
power is high as they have many choices, but if
there is only one type of app then there is low

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buyer power. This is uncommon however as
apps are generally copied quickly.
Supplier power: Low Computers are required to make apps and
according to Wikipedia there are over 120
computer manufacturers which app companies
can choose to buy from. This makes supplier
power low as they can go to any of them(List of
Computer System Manufacturers, n.d.).
Threat of new
entrants:
High There are low barriers to entry into the app
market. Apps can be created with little
amounts of money, little knowledge (if you get
it made for you otherwise it will require some
skill), and apps can be made in a short space of
time (Suter, 2012).
Threat of substitutes: High Many apps that provide information can be
used without needing to be in a wifi zone
enabling them to be used almost anywhere.
The internet is a substitute for these apps as
the information can also be found online and
with around 60% of people using their phones
to go on the internet, they too can find this
information (Duggan, 2013).
Rivalry among
existing competitors:
High The app market is constantly changing with
new and improved apps. Leading companines
become marginal in months and new gadgets
continually appear as firms seek to make a
profit (Serrano, Hernantes, &Gallardo, 2013).
An example is the app Flappy Bird as other

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companies quickly released similar apps such
as Floppy Bird in order to cash in on the new
crazed app.
Overall attractiveness of the industry:With high buyer power, threat of new entrants,
threat of substitutes, and rivalry among competitors, this industry analysis makes it
clear that the app industry has a low attractiveness.
3. 3 Customers and Their Needs
Alcohol drinkers. People who consume alcohol in NZ must be 18 years old and above
and therefore the customer age group for this app is likely to be between 18 and 60
years old. With around 75% of people who drink to intoxication experiencing
hangovers, this will serve their needs by enabling then to continue to be productive the
following day by preventing a hangover (Swift & Davidson, 1997). This app will also
need to be relatively simple to operate so that customers can easily use the app during
the consumption of alcohol.
Non-alcohol drinkers. This app also provides information on drinking which might be
used by people younger than 18 e.g. if they wanted information. They require relevant
and up to date information.
3. 4 The Product and Service
With this app you choose a period of time in which you will be consuming alcohol and
every 45 minutes your phone will buzz and/or sound loudly until you switch it off after
you have consumed a glass of water. These alerts will continue until you switch it off
when you have finished drinking alcohol or when you feel you are rehydrated thereby
serving the needs of people who have work/university the following day as dehydration
is the main cause of hangovers. The app will also have pages with advice on other
possible methods to prevent hangovers such as to drink alcohol beverages with fewer
congeners which serves the needs of those using the app purely for information
purposes. The information page will include easy to read bullet points of hangover
prevention methods, not lots of pages of information, therefore creating ease for
drunken customers.

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3. 5 Suppliers and Partners
Partners - The most important product our business will have to acquire is a computer.
Being partners with a computer manufacturer such as Lenovo creates a strategic
alliance where all purchases of computers would be undertaken through that company
and in return we may receive discounts. A second partner includes Google Cloud
Platform which provides our business with a range of tools and services for us to use
that other businesses might dont receive as they arent in a strategic alliance.
Suppliers - Our suppliers include Telecom for broadband and phone services, and Xero
for our accounting software. Both of these will be essential to our business but we
donthavestrategic alliances with these companies.
3. 6 Strategy: Cost Leadership
App developers often choose to make their apps free for reasons such as if your app
isnt free, another one will be which means with such a large number of apps now in
the saturated market, people will normally be able to find a free version, or a free
version will soon be developed (Preimesberger, 2013). So our cost strategy will be low
cost by making our app free and rely on in-app advertising and other methods to
generate income.
Our competitive scope will be broad market as we aim to target as much of the market
as possible even though our likely market is going to be between 18-65 years old.
The overall strategy is therefore Cost Leadership.
3. 7 Value Chain Activity: Technology Development (and R&D)
The most important value chain activity for this business is Technology Development
(and R&D).
This app is the first of its kind as most hangover associated apps aim to cure hangovers.
Through research it has been found that rehydration is best for hangover prevention
and through continual breakthroughs in research and development it willdeliver the
best methods of hangover prevention and the best ways for the information to be
accessed 24/7.

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3. 8 Business Processes
3. 8. 1. INFORMATION UPDATE PROCESS-Maintaining up to date information on our
app is important in our vision statement and with new information becoming more and
more available, researching and being able to update is an important process.


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3. 8. 2. TECHNOLOGY DEVELOPMENT PROCESS -With technology development being
our key value chain activity, the process of creating technologies/apps to gain a
competitive advantage is vital. A strong emphasis is therefore placed on the technology
development process.




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3. 9 Functionalities
3. 9. 1. INFORMATION UPDATE PROCESS
Be able to receive complaints
Be able to update information
3. 9. 2. TECHNOLOGY DEVELOPMENT PROCESS
Be able to test the product
Be able to alter the product

3. 10 Systems

3. 10. 1. CUSTOMER COMPLAINTS SYSTEM -This system is important for businesses as
customers need to be able to communicate their concerns, ideas, and problems to the
company. This allows the business to be able to change an aspect of their business if
customers can see a better or more profitable way of doing something.

3. 10. 2. PRODUCT TESTING SYSTEM This system is vital in a technology industry such
as the app industry as a business has to be sure that what they are producing works.
This system allows them to check products before they enter the market.

3. 10. 3. PRODUCT ALTERATION SYSTEM -This system allows a business to be able to
update and alter information or technology so that their products and services remain
competitive against other firms in the market.

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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)

Technology
Development
(and R&D)
1. Information
update process
1. Be able to receive complaints

2. Be able to update information
Customer complaints
system
Information update system
Customer Relationship
Management system
Enterprise Resource
Planning system
2. Technology
development
process
1. Be able to test the product



2. Be able to alter the product
Product testing system

Product alteration system
Enterprise Resource
Planning system
Enterprise Resource
Planning system

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CONCLUSION
This examination of our business has outlined the specific processes, functionalities, as
well as both the specific information and broad systems that are required for our
personal handbook for preventing hangovers.It has also shows the importance placed
on technology development and R&D as the business aims to have the latest
information and technology as portrayed by the vision statement to remain competitive
in an industry with low attractiveness.

REFERENCES
1. Appolicious. (n.d.). Six iPhone Apps for Relieving Hangover Symptoms. Retrieved
from http://www.appolicious.com/shine/articles/7876-six-iphone-apps-for-
relieving-hangover-symptoms
2. Duggan, M. (2013). Cell Phone Activities. Retrieved from
http://www.pewinternet.org/2013/09/19/cell-phone-activities-2013/
3. Preimesberger, C. (2013). Mobile App Developers Should Keep Their Apps Free: 10
Reasons Why. Retrieved from
http://www.eweek.com/cloud/slideshows/mobile-app-developers-should-
keep-their-apps-free-10-reasons-why.html
4. Serrano, N., Hernantes, J., & Gallardo, G. (2013). Mobile Web Apps. IEEE Software,
30(5), 22-27. doi:10.1109/MS.2013.111
5. Suter, F. (2012). Michael Porters Five Competitive Forces. Retrieved from
http://3xhappiness.com/analysis-of-the-app-market-based-on-michael-porters-
five-competitive-forces/
6. Swift, A., & Davidson, D. (1997). Alcohol Hangover. Retrieved from
http://www.mineralmed.com.pt/documentos/pdf/b2067e6f-4a87-4647-a32e-
0593821831a3.pdf
7. Thompson, D. (2013). The Economic Cost of Hangovers. Retrieved from
http://www.theatlantic.com/business/archive/2013/07/the-economic-cost-of-
hangovers/277546/
8. Wikipedia - List of Computer System Manufacturers. (n.d.). Retrieved from
http://en.wikipedia.org/wiki/List_of_computer_system_manufacturers