INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS SECTION2014

Name Terry Jung Woo KimNetID Jkim485Group Number: 492Website Link: http://infosys110group492.blogspot.co.nz/

Tutorial DetailsTutor: Day: Time:Nicholl Friday 9AM

Time Spent on Assignment: 10 hours Word Count: 1500

TICKET EXPRESSINTRODUCTION

How long does it take to find the cheapest ticket for an event? How long has it taken to enter the event e.g. waiting in lines? The primary problem is that people want to find the cheapest alternative when buying something. The secondary problem is the build up of frustration due to over crowdedness. A system that replaces the current ticketing systems, something more efficient is the solution to all these problems, promoting efficiency and convenience.

3. BUSINESS SECTION

3.1 Vision

To utilise technology to foster a new standard of efficiency in ticketing methods.

3.2 Industry Analysis: Ticketing application industry

Force: High/Low: Justification:

Buyer power: High High, because there are so many places people can

purhcase their tickets. E.g. people area able to buy

concert tickets from ticketek, ticketmaster or ticket

direct.

Supplier power: High High, because there has not been an application such

like this before therefore the businesses may not want

to invest into a high risk however high reward system.

The potetnial supplier (the businesses that uses

tickets) may not want to and does not need to make a

risky investment.

Threat of new entrants: HighBecause it is so easy to invent new applications

nowadays the “ticket express” application may have

to battle with similliar applications which provide

similliar services. There are low barriers to entry in

this industry allowing for this to occur. “Within 6

months there was an increase in 48% for publishing

new apps” (Triple happineies, 2012).

Threat of substitutes: High High, because of the concept of customer loyality.

“Loyal customers are likely to buy more and and often

willing to pay more” even if there is a cheaper

alternative. (The marketing donut) Even if there were

cheaper tickets people may stay loyal to their

frequent suppliers and therefore purchase tickets

directly through them instead of using the application.

Rivalry among existing

competitors:

High High, because it is easy to make an application which

does the same thing and evryone will all be fighting

for the same contract with large ticketing businesses.

“Anyone with the slightest idea on how to programme

and anyone with a computer” is able to create an

application for smartphones. (Business insider

Australia, 2011)

Overall attractiveness of the industry: (Moderate) The ease to get into this industry maybe low and maybe attractive at first sight however because it is so easy to make applications and the profitability is likely to be low.

3.3 Customers and Their Needs

The potential customers for this application can be anyone from babies to elders of both genders. The potential customer’s range is very broad because a lot of the world’s population uses Smartphone’s or tablet’s, “one in every five people own a Smartphone and one in seventeen people own a tablet” and it will undoubtedly increase (Business insider, 2013). This application will be useful because it will help reduce:

-The use of paper, “the recycling rate had gone up to nearly 70%,” this figure suggests that people around the world are using too much paper without thinking about the importance of the wastage. (Waste management world)

- congestion outside the venue and inside of the venue, (people do not have to come in earlier to purchase the tickets as they have pre purchased it and also scanning your mobile device is a lot quicker than an employee checking if each ticket is valid)

- Over crowdedness in the venue (increases the chance of personal risk e.g. theft.) (Crime prevention Australia, 2002)

- labour work (employees do not have to stand outside the entrance checking each ticket)

3.4 The Product and Service

To create this application we merge all the businesses that use the ticketing system and allow them to list all their tickets to our application. This way the users are able to check which tickets are cheaper instantly instead of going through each company’s webpage. Through “Ticket express” users will be free from frustration because they won’t have to look for the cheapest tickets and they won’t have to wait in long queues to enter.

3.5 Suppliers and Partners

The potential suppliers for this application will be big companies which use the ticketing system, e.g. Ticketek, Air New Zealand, Event Cinemas, etc. Another supplier would be a company which provide a scanning system (self-checkout system/semi attended customer activated terminal). In order for this application to function we need inputs for our outputs; inputs being the tickets and the scanning system and outputs being the application users. The potential partners for this application would be big telecommunication businesses like Android because we need people to download the application; another partner would be a reliable internet service provider such as Ultra fibre Broadband (Telecom). This is crucial because the application may crash from at certain times; especially when tickets for someone famous goes online.

3.6 Strategy : Cost leadership

The strategy used would be cost leadership. This is because I would want to lower the cost for people to use the application so it attracts people and they will be willing to transfer over to the technological method of ticketing; also since the target customer is very broad cost leadership is the most appropriate strategy to undertake.

3.7 Value Chain Activity: Procurement

Procurement is the most value adding activity for this application. This is because for this application to fully operate we need to build good relationships with big ticketing businesses so we can make contracts with all the big businesses. We need to be able to manage our suppliers in order for the public to use the application. Without building good relationships with the big ticketing businesses we cannot make advantageous contracts with them.

3.8 Business process

1) Ticket purchasing/booking process

- This is an important process for this application because people need to purchase the E-ticket. This is one of the main functions of this application.

2) Scan to entrance process

- This is also an important process to use the application. The user must store the ticket safely in their mobile device till the day of the event so they can present it to the self-checkout scanner and enter. This is the secondary fundamental process for this application.

3.9 Functionalities

1) Functionality for purchasing the ticket

1) The tickets are categorised into the appropriate categories2) Price is clearly stated in order 3) The user pays the correct amount of money 4) The correct E-ticket gets sent to the buyer

2) Scanning for entrance

1) Identify the transaction which occurred when and how the person paid for the ticket2) Identify the correct E-ticket on the users mobile device3) Be able to scan the E-ticket through the self check out system and let people in4) Be able to identify invalid/false E-tickets and stop them from going in 5) Be able to alert an employee immediately for people who need help with their E-ticket (when

the red light comes on)

3.10 Systems

1) Booking/Purchasing ticket system (Transaction Processing System)

- This system will support some key functionalities as listed above. It will efficiently process the desired ticket prices and consequently be able to find the cheapest ticket for the user. The efficiency this system provides will be in line with the business’ vision.

2) Delivering the E-ticket safely to the scanners on the day of the event (Collaboration systems –Knowledge management system)

- Once the ticket is purchased, the user needs a confirmation that they have purchased it.Therefore an E-ticket is sent to them through the application. This system is crucially needed because the information on the ticket must be shared between the business, the purchaser and then the scanner on the day of the event.

3) Communications Management System

- This system will facilitate the flow of communication and information between the customer, the

business and suppliers. It will support some key functionalities mentioned above. It will allow customers

to communicate with the business, indicating a fault with the scanners. An appropriately skilled

technician will then be communicated with and allocated the task of attending to this problem. Through

this system, flow of information between all parties is made more efficient, thus supports our vision in

delivering efficiency to the ticketing system.

3.11Summary table (Value Chain to Systems)

Value Chain Activity

Processes Functionalities Specific Information System(s)

Broad Information System(s)

Procurement

1. Ticket booking process

1) Make sure the tickets are categorised into the appropriate categories

2) Make sure the prices are clearly stated3) Make sure the user pays the correct

amount of money 4) Make sure that the correct E-ticket gets

sent to the buyer

1,2,3 - Booking/Purchasing ticket system

4 - Knowledge management system

Transaction Processing Systems

Collaboration systems

5) Scan to entrance

process

1) Identify the transaction which occurred when and how the person paid for the ticket

2) Identify the correct E-ticket on the users mobile device

3) Be able to scan the E-ticket through the self check out system and let people in

4) Be able to identify invalid/false E-tickets and stop them from going in

5) Be able to alert an employee immediately for people who need help with their E-ticket (when the red light comes on)

1,2,3,4 - Knowledge management system

5 - Communications Management System

Collaboration systems

Conclusion

We are now heading into a technological era and there are so many positive aspects about it therefore we should be taking advantage of the improvement of technology.

By changing from the traditional paper ticket to the technological “ticket express” system we are able to reduce so many negatives in our lives such as frustration and we are also able to reduce a tonne of paper.

References:

1) Triple happiness, 2012 retrieved from:

http://3xhappiness.com/analysis-of-the-app-market-based-on-michael-porters-five-competitive-forces/

2) Business insider Australia, 2011 retrieved from:

http://www.businessinsider.com.au/how-to-make-your-own-mobile-apps-for-the-android-market-2011-2

3) Business insider,2013 retrieved from:

http://www.businessinsider.com.au/smartphone-and-tablet-penetration-2013-10

4) The marketing donut, retrieved from:

http://www.marketingdonut.co.uk/marketing/customer-care/customer-loyalty-schemes

5) Waste management world, retrieved from:

http://www.waste-management-world.com/articles/print/volume-13/issue-1/features/paper-recycling-nurturing-success.html

6) Crime prevention Australia, 2002 retrieved from:

http://www.crimeprevention.gov.au/Publications/PublicSafety/Pages/Planning_Safe_Public_Events_Practical_Guidelines.aspx