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INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS SECTION2014

Name Nikhil GuptaNetID Ngup966Group Number: 268Website Link: http://infosys1102014s1group268.blogspot.co.nz/

Tutorial DetailsTutor: Day: Time:Kit-Wah Wednesday 12.00 pm

Time Spent on Assignment: 21 Hours Word Count: 1560

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FINANCIAL LITERACY IN NEW ZEALANDINTRODUCTION

The basic skills and knowledge required to manage personal finances are evidently absent

amongst an overwhelming majority of New Zealanders today. ‘Financial literacy’, the

catchphrase attached to these skills and this knowledge, remains at low levels amongst New

Zealanders and the youth in particular. My group has designed a software that provides its

users with adequate skills and knowledge to improve their 'financial literacy'. Being an

interactive software, there is an opportunity to improve the financial literacy of the general

population across the country. The software is designed for users across a range of ages.

Our proposal outlines and evaluates a potential solution to the absence of financial literacy

in New Zealand.

3.BUSINESS SECTION

3.1 Vision

To provide New Zelanders with the basic skills and knowledge required to manage personal

finances and achieve a secure financial future.

3.2 Industry Analysis:

Our software falls in the Financial Education Industry as it provides fun and interactive

education tools to improve the financial literacy.

Force High/Low Justification

Buyer power High

The buyer power for our product in the Financial Education Industry is high. There are already existing softwares for both kids/teens and adults that aid with financial literacy and help plan for the future with tools such as budget generators, vairous calculators and financial advisory. The existance of such softwares in the industry provide the customers with the choice to choose other products over ours which results in high buyer power.(Kearns, S). (n.d.)

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Force High/Low JustificationSupplier power Low The supplier power for our product in the Financial

Education Industry is low. This is because there are many software developers that the Financial Education Industry can approach to create a software that will aid users with financial literacy. Due to the Financial Education Industry having lots of choice as to whom to approch for software development, supplier power is low.

Threat of new entrants High The threat of new entrants in the Financial Education Industry is high. With the levels of technology available booming worldwide it is easy for new entrants to arise and provide financial education by developing softwares and other technological means. In fact, the government is encouraging develpoment of educational tools in this industry, which creates greater incentive for new entrants. (Spolsky, J.) (July 22, 2013).

Threat of substitute products

High The threat of substitue products or services in the Financial Education Industry is quite high. There are already many softwares present in this industry that serve the same purpose which is to aid with financial literacy and help with managing personal financies for both the youth and adults.(Kearns, S). (n.d.)

Rivalry among existing competitors

High Rivalry among existing competitors in the Financial Education Industry is high. Due to the existance of many substitute products competion levels are extremely high as competitors set low prices in order under-cut one another so they can maximise their own sales.

Overall attractiveness of the industry:The Financial Education Industry isn't an attractive industry. The

reason being is that buyers have a lot of choice due the already existance of softwares that aid adults and the

youth in improving thier financial literacy so buyer power is high. As a result, the threat of substitues and

rivalry among existining competitors is also high. With technology being very easily available, the threat of a

new entrants in the Financial Education Industry is also high. Despite the of the fact that supplier power is low,

after applying Proters Five Force Model to the Financial Education Industry, we can conclude that overall this is

not an attractive industry.

3.3 Customers and Their Needs

The problem of inadequate financial education affects all New Zealanders, therefore we

must take in to account all their needs to create relevant a software programme. Due to a

diverse array of customers, our product is designed for a range of ages.

The proposed solution targets both adults and the youth. For adults our software will

provide them with slightly advance finance management tools such as various budgets and

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financial statements along with higher level financial information to help them improve

thier financial literacy and personal finance management skills. For the youth our software

will generate simple financial statements along with basic financial imformation to provide

them with a solid foundation of financial literacy as for kids/teens the product needs to

strike an appropriate balance between education and fun to maximise learning.

3.4 The Product and Service

The product offered would be a computer software. It would be designed to teach and apply

important concepts in a way which is interesting, fun, interactive and engaging. This would

encourage users to learn important life skills while enjoying it.

We also value support services. Technical services for any issues with using the product will

be available online. We will also provide regular updates that can be downloaded from

online.

3.5 Suppliers and Partners

Our suppliers are the firms and people we will pay to produce our product. The computer

software needs to be produced it in a form which we can introduce in the marketplace. We

will also require the input of experts in areas of finance and education.

Our partners are the firms we do not pay, but agree to collaborate with in the hope of

mutual benefits. We predict private banks as a primary partner, with scope to place our

product alongside various types of big business firms like the big four accounting firms.

3.6 Strategy

The education software that we propose would follow a low cost, broad market, cost

leadership strategy. We believe that financial literacy skills extends to the entire population

at some point in their lives. Therefore every New Zealander is a potential customer, and this

highlights that we sit in a broad market.

Given that financial education products already exist on the market, we need to find a way

to establish a competitve advantage, hence low cost.

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3.7 Value Chain Activity: Make the product or service

Because our product exists primarily as an educative tool, we believe that making the

product or service is the key value chain activity. Our main goal is developing a product that

is appealing, interactive and exciting but still maximises learning and improving financial

literacy. This ensures that users gain the knowledge and understanding that shapes our

vision. We can best address this when we compose the software and determine how users

will interact. It is here that we also have scope to develop a competitive advantage, in line

with our cost leadership strategy.

3.8 Business Processes

3.8.1Design Process - this is important as the product needs to meet the needs and requirements of the customer. Therefore, the design is crucial in ensuring the product delivers these needs and requirements. The input from individual experts will help establish key financial concepts.

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3.8.2. Software Creation Process – This is important because it is the transition from design to the actual software. This process determines the interaction between the end user and the software, which is critical because it shapes the learning process.

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3.9 Functionalities

3.9.1. Design Process Establish key financial concepts. Transform concepts into software requirements

3.9.2. Software Creation Process Integrate visuals, sound and programming. Analyse prototype for bugs and glitches.

3.10 Systems

3.10.1. KNOWLEDGE MANAGEMENT SYSTEM -This system is required in order to manage and

keep track of key information. This system will compile New Zealand financial statistics and

educational material. It'll also be used to manage input regarding the software from

educational professionals and targeted users.This system will record key educational

material to establish key teaching concepts, and then prioritise these concepts to form a

series of software requirements.

3.10.2. SOFTWARE MANAGEMENTSYSTEM -the software has several different aspects

including visuals, sound, knowledge, as well as a specialised team to create the software.

This system will primarily integrate all these aspects, but will also allow these individuals to

collaborate and communicate. This system was selected to improve the process of software

integration, to make it less manual and help employees collaborate.

3.10.3. PROGRAMMING ANALYSISSYSTEM -This system is designed to search through the multiple lines of programming and find potential issues. It'll also ensure that these issues are resolved and suggest possible areas for improvement in the software that increase its performance and reliability. This system was selected to reduce the burden of ongoing product testing with a more automated approach.

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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)

Make the

product/service

1. Design Process

1. Establish key financial concepts.

2. Transform concepts into software requirements.

Knowledge Management System.

Supply Chain Management

Knowledge Management2. Software

Creation

Process

1. Integrate visuals, sound and programming.

2. Analyse prototype for bugs and glitches.

Software Management System.

Programming Analysis System.

Supply Chain Management

Management Support

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CONCLUSION

It is tough to startup any new business. But nonetheless the opportunity to address the low

levels of financial literacy in New Zealand remains. The right combination of industry

knowledge and educational expertise, alongside an entreprenuerial approach, will lay the

platform for this product, idea, and business.We have identified the top 3 actions that will

help transform this proposal into a reality.

1. Begin research on key financial concepts, consulting with financial and educational

professionals.

2. Recruit a software development team

3. Establish relationships with key support businesses, including technical advisors and

manufacturers.

REFERENCES

ANZ. (2006). Retirement commision financial knowledge survey. Retrieved from http://www.anz.co.nz/resources/3/d/3d0203804e876732a753bfca5e20697c/About+Us+-+ANZ-Retirement-Commission-Financial-Knowledge-Survey-en.pdf?CACHEID=3b76c0004de3c8f793ffd3397147c54d&CACHEID=3b76c0004de3c8f793ffd3397147c54d&CACHEID=3b76c0004de3c8f793ffd3397147c54d&CACHEID=3b76c0004de3c8f793ffd3397147c54d

Sutherland, R. (March 4th, 2014). Personal Finance Software Review. Retrieved from http://personal-finance-software-review.toptenreviews.com/

- See more at: http://reffor.us/index.php#sthash.CK3msRJa.dpuf

Cairncross, S., & Mannion, M. (2001). Interactive multimedia and learning: realizing the benefits. Innovations in Education and Teaching International. Retrieved from http://personal.tsss.edu.hk/kem/msc/6025/5446424.pdf

Crossan, D. (2010). Need for financial education highlighted by crisis. [Article]. inFinance, 124(3), 26-27. Retrieved from Business Source Premier database.

Kearns, S. (n.d.). 4 Best Kids Educational Software Programs to Teach Your Kids About Money. Retrieved from http://www.moneycrashers.com/best-kids-educational-software-programs-money/ - See more at: http://reffor.us/index.php#sthash.3oJtl8wp.dpuf

Reserve Bank of New Zealand. (2012). CC12 Credit card statistics: balances outstanding and interest rates. Retrieved from http://www.rbnz.govt.nz/statistics/monfin/c12/data.html

Reserve Bank of New Zealand. (2011). Key graphs – household debt. Retrieved from http://www.rbnz.govt.nz/keygraphs/fig5.html

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Spolsky, J. (July 22, 2013). Victory Lap for Ask Patents. Retrieved from http://www.joelonsoftware.com/items/2013/07/22.html - See more at: http://reffor.us/index.php#sthash.r53kvR1C.dpuf

Statistics New Zealand. (2010). Institutional sector accounts: 1999-2008 – media release. Retrieved from http://www.stats.govt.nz/browse_for_stats/economic_indicators/NationalAccounts/InstitutionalSectorAccounts_MR99-08.aspx

Widdowson, D., & Hailwood, K.(2007). Financial literacy and its role in promoting a soundfinancial system. Reserve Bank of New Zealand: Bulletin, Vol. 70, No.2. Retrieved from http://www.rbnz.govt.nz/research/bulletin/2007_2011/2007jun70_2widdowsonhailwood.pdf

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