Name James Hamin Noh NetID Jnoh287 Group Number: 304 Website Link: http://infosys1102014ssgroup304.blogspot.co.nz/ Tutorial Details Tutor: Day: Time: Olivia Schultz Friday 9am Time Spent on Assignment: 18 hours Word Count: 1600
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2 CURETECH (LOWER BACK PAIN APP) INTRODUCTION Lower back pain is one of the most common medical problems that affect 8 out of 10 people during the course of their lifetime (Medline Plus, 2014). There are different types of back pain ranging in severity, yet this medical problem is not regarded seriously. My company CureTech (derived from Curing with technology) has created a free, user-friendly and effective app that helps treat, inform and cure lower back pain. 3.BUSINESS SECTION 3.1 Vision To prevent, cure and inform the world of common, preventable illnesses and injuries using innovative technology. 3.2 Industry Analysis: Mobilephone Healthcare Applications Industry Industry: Mobilephone Healthcare Applications Industry. Force: High/Low: Justification: Buyer power: High There are already existing apps that address public health concerns (Tucker, 2011). In addition, public health organisations are beginning to also create apps related to health due to the increasing number of people using smartphones (Tucker, 2011). Supplier power: Low There are currently over 43,000 health-related apps in the Apple iTunes store alone (excluding the Google Play Store for Android). 16,275 of these apps are patient-focused and contain
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3 procedures related to treatment and cure (IMS Health, 2014). Threat of new entrants: High The app industry is growing at a rapid rate with low entry barriers for new entrants. There are two massive markets at which new entrants can enter which are the Apple App store, Google Android Market and the Blackberry App World to name a few (Suter, 2012). Threat of substitutes: High There are many methods other than the smartphone app alternative to treatment for your lower back. These may include basic treatments such as applying ice, changing sleeping positions or a visit to the doctor which are standard alternatives and procedures to back pain (WebMD, 2013). Rivalry among existing competitors: High As it is easy to enter the mobile app industry and the fact that there are a large number of apps that are available which are similar (i.e. health- related apps) there is fierce rivalry among existing competitors (Suter, 2012). Overall attractiveness of the industry: According to Porters Five Forces Model, it would appear that the overall attractiveness of the mobile healthcare applications industry is unappealing as four of the five categories were determined as high. This leads to the conclusion that the this market is very competitive with low supplier power, low entrance barriers for new entrants and the numerous alternatives for substitutes for health-related apps such as lower back pain. In addition, the most common method of treating injuries and pain is not using a mobile app but visiting the doctor to seek professional health advice.
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4 However, the low entrance barriers for new entrants could work in both ways as my company CureTech could always come up with new innovative ideas that may interest and gain many potential customers as well as successful mobile apps earn an extremely large sum of revenue. An example of this is the app of 2013, Candy Crush which earns a daily revenue of approximately $893,391 (Think Gaming, 2014). 3.3 Customers and Thei r Needs CureTech targets the majority of the worlds population which are affected by lower back pain over their lifetime; a massive figure of 8 out 10 people (Medline, 2014). It is obvious from this statistic that it is very prevalent amongst all kinds of people regardless of age, sex or ethnicity. In addition, most people believe that back pain will be treated on its own where in fact it returns in a worsened state (ACA, 2014). It is clearly advised and stated by many medical health professionals that regular exercise and an active lifestyle that act on the lower back and even those which do not specifically target the lower back prevents and treats lower back pain (ACA, 2014). 3.4 The Product and Service Based on the evidence aforementioned, CureTech has created an app that contains exercises with video tutorials that prevent and treat lower back pain as well as information on lower back pain; and this is all completely free. Our target group (those who experience lower back pain) need and can be treated easily with our app as these exercises can be easily performed with no extra equipment and can be done anywhere and anytime. 3.5 Suppliers and Partners Our two suppliers for CureTech in developing our product is Designs Inc and RealSoft Technology. These two suppliers are leading companies which have a vast amount of experience in software development and have already produced mobile apps in relation to the iPhone and Android phones; which are the two biggest markets currently in the mobile app market. One of our main partners would be the two largest mobile app companies out there which is the Google Play Store for Android phones and the Apple App Store for iPhones. Partnering with these huge customer based markets would get our app recognised
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5 by the millions of app users in these markets and create potential future customers for our future products.Furthermore, our other partner would be hospitals located in New Zealand to begin with. Doctors and nurses that attend to patients with back pain would be able to inform patients of our app and this would immensely increase our customer base as well as help our company move towards our vision. 3.6 Strategy: Cost leadership CureTech will use a cost leadership strategy as this allows the product to target a much broader market as well as maintaining a competitive advantage against other rival products. I believe that this strategy is best suited for our product as the market that our product is in is very competitive. Our app is free as we believe that many of our customers (those with back pain) may not be treating their back pain due to the expensive fees a doctors visit and possible prescriptions lead to. The broad market is the most appropriate as previously stated, 8 out of 10 people experience back pain during the course of their lifetime (Medline, 2014). The overall strategy is therefore Cost leadership. 3.7 Value Chain Activity: Market and Sell the Product The most important value chain activity for CureTech is the activity of Market and Sell the Product. The activity of marketing and selling our product is of utmost importance as it is one of the key steps to achieving our companys vision; To prevent, cure and inform the world of common, preventable illnesses and injuries using innovative technology. In order to prevent, cure and inform the world of common preventable illnesses and injuries such as lower back pain, our company must market the product so it is acknowledged and known on a global scale. In addition, this value chain company is also a large factor in terms of achieving our cost leadership strategy. Obtaining a large customer base by successful and creative marketing and eventually selling the product to our customers is very important in succeeding in a low cost strategy. Our vision, strategy and value chain activity is all intertwined and involves success in all aspects to achieve our companys vision.
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6 3.8 Business Processes 3.8.1. MARKETING PROCESSA key business process for our company is the process of marketing. This process is crucial as it creates public interest amongst our target customers and therefore increases our customer base. In addition, in a competitive market such as the mobile phone healthcare app market, it is important that CureTech receives recognition and is able to stand out among other healthcare apps. Furthermore, successful marketing is critical in achieving our companys vision in order for our product to reach out to all of our target customers on a global scale. The business process of marketing is shown below:
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7 3.8.2. SERVICE AFTER SALE PROCESS - Another crucial business process is the process of service after sales. This is important because as an app that relies on customer satisfaction, effectiveness and feedback; our company must heavily focus on this business process.In addition, as the world of technology and the discovery of new medical information are continually being updated at a fast pace, it is vital that our app has the current and correct information regarding prevention and treatment to back pain. By doing this, we are able to keep our customers safe and do not put their wellbeing in jeopardy. All of this is also contributing to make our vision accomplishable.The business process of service after sale is shown below:
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8 3.9 Functionalities 3.9.1. MARKETING PROCESS Promoting the product Creates appeal to target customers 3.9.2. SERVICE AFTER SALE PROCESS Leads to continuous improvement in quality of product Attend to customers needs and make adjustments accordingly 3.10 Systems
3.10.1. MARKETING MANAGEMENT SYSTEM The marketing management system incorporates the functionality of promoting the product and creating appeal to target customers by analyzing specific features and benefits the product must deliver to the customers and also using the most suitable form of advertising and promotion to reach the target customers. In doing so, effective marketing enables our product to reach those with lower back pain on a global scale; which is our vision that we wish to accomplish. 3.10.2. CUSTOMER SERVICE SYSTEMThe customer service system involves the functionality of attending to our customers needs and making adjustments accordingly by putting our customers first. Because our vision is to relieve those with common injuries and illnesses that are preventable and treatable, it is of utmost importance that our app is effective towards our customers and we can only record our success through customer feedback.This supports our vision as we are moving towards a world where people are free from common and preventable illnesses. 3.10.3. PRODUCT MANUFACTURING SYSTEMThe product manufacturing system incorporates the functionality of continuous improvement in the quality of our product as it is important that we update and improve our product to our customers accordingly to their satisfaction. We can only succeed in our vision if we know that our product is correct in terms of the treatment and prevention measures to cure lower back pain and this can only be achievable if we are updating our product according to the current medical findings and research that are related to treating lower back pain.
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9 3.11. Summary Table: Value Chain to Systems
Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s)
Market and Sell the Product 1. Marketing process 1. Promoting the product
2. Creating appeal to target customers Marketing management system
Decision Support System 2. Service after sales process 1. Leads to continuous improvement in quality of product
2. Attend to customers needs and make adjustments accordingly Customer service system
Product manufacturing system Customer relationship management system
Enterprise Resource Planning System
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10 CONCLUSION CureTech is a business with a vision to prevent, cure and inform the world of common, preventable illnesses and injuries using innovative technology. If we are able to relieve one of the most common illnesses (lower back pain) using innovative technology that is free to anyone that has access to a mobile phone, we hope to achieve our vision and continue to treat other common illnesses and diseases like lower back pain and be a part of achieving world-wide overall wellbeing through a variety of effective business processes and decisions and innovative technology. REFERENCES
1. MedlinePlus. (2014). Back Pain. Retrieved from URL http://www.nlm.nih.gov/medlineplus/backpain.html
2. Tucker, C. (2011). Public health-related apps growing in number, popularity: Smartphones, tablets used for health. The Nation's Health, 41(8), 1-15.
3. IMS Health. (2014). IMS Health Identifies Opportunities for Mobile Healthcare Apps to Drive Patient Engagement, Enhance Delivery of Care. Retrieved from URL http://www.imshealth.com/portal/site/imshealth/menuitem.c76283e8bf81e98f53c 753c71ad8c22a/?vgnextoid=0b96ccb4c3402410VgnVCM10000076192ca2RCRD
4. Suter, F. (2012). Analysis of the app market based on Michael Porters five competitive forces. Retrieved from URL http://3xhappiness.com/analysis-of-the-app- market-based-on-michael-porters-five-competitive-forces/
5. WebMD. (2013). Back Pain Health Center. Retrieved from URL http://www.webmd.com/back-pain/tc/back-problems-and-injuries-home-treatment
6. Think Gaming. (2014). Candy Crush Saga. Retrieved from URL http://thinkgaming.com/app-sales-data/2/candy-crush-saga/
7. American Chiropractic Association. (2014). Does Back Pain Go Away on Its Own?Retrieved from URL http://www.acatoday.org/content_css.cfm?CID=66