Group Concept Report
Introduction
So basically this report shows our ideas of having a SIM card that has multi-functional capabilities such as Credit Cards services a well as information provider of Air Travels and Airports related goods/services through the mobile network operators.
Considering our group consists or five members, each member’s work is much simpler as we have more members. We divided the tasks among ourselves and each member did their job perfectly well. Firstly, we formed a meeting and decided who does what and when and how. One of us went ahead to select the audience group and did a thorough interview with the audience group. This was done brilliantly. Next, one of us went into an offline researching on credit cards as well as airports, air travel, airlines and etcetera. This was done easily by going through newspapers as well as magazines and some reference books from the library. There’s also one member that actually did the same information collection albeit differently, that is by doing it online through the Internet. Another member did the SWOT Analysis which was required by the report and gave a complete overlook on how our ideas will fair. Finally, the last member in the group had the toughest job as he is the one editing and compiling this final group concept report. So basically, this is a short summary on how our researches are done.
Audience Group
Our group basically decided to target one specific group of audience by age range. Our targeted audience’s age range is approximately 20 to 40 years old and there are no other restrictions in our audience group. This means that they can be from any walks of life from having profession as doctors or businesspersons to lawyers or even young undergraduates. We’ve formulated a set of questions which we were to ask them when we interview them and some of these questions can include “What do you think of current available mobile services to you? Any opinions?” or “What do you think is the most important services you can think of which might be actually convenient and helpful to you?” or even “What were your thoughts upon hearing our mobile service ideas?” These are just some of the questions we asked them. In return, we were able to find out many important facts about how well people think on current mobile services and how popular they are in the market now. It is no doubt that many agreed that the SMS and MMS as well as 3G related services such as video conferencing are really getting hotter and is always top of the news in the mobile world. However, there are quite a number of them that believes that there are still no services which can actually helps to reduce the burden of inconvenience and wished that mobile operators are able to come up with fresh new ideas so that there a wide range of services which helps to reduce the underlying problems of inconvenience. Then, upon hearing this important comments, we shot them with our ideas and we’ve got a mixed reactions and results from the audience groups. Most believed that our ideas were fantastic and believed that it should be a very important service in the coming years while some believed that our ideas have its merits but its isn’t that useful and might not work at all. Finally, there is 1 small minority bunch that thinks our ideas are totally unintelligent and useless and felt that it needed a lot of polishing before it can even be considered as a new service. From this result, we felt that we did not receive a creditable response from the audience group thus we then worked on how to improve the idea’s we’ve chosen. Since many of the audience we interviewed agreed that they have to have information on the go that currently no operators could provide, we decided to add the Air Travel Information Portal idea into our report as we believed that it can benefit many business travelers that requires updated information on air travel on the go. Other than that, there are interviewees that felt that credit cards are cumbersome and maybe there might be some changes in the ideas that we can make to help reduce this problem. So, from that we thought that it might useful for many users if credit card services and be integrated into mobile phones as a service provided by the mobile phone operators. At the end, when all of the changes have been made, we went through it once more and when every single group members agreed on it, we decided to go for it. Our polished idea will be explained in the next section.
The Concept
Brief Overview
Basically, we’ve done many researches and found out that there aren’t many services that actually provide convenience in a person’s daily life. There are services like Short Message Services (SMS), Multimedia Message Services (MMS), 3G related services and etcetera which are quite useful but aren’t really providing convenience. So we’ve come up with our own brand of mobile service which we hope will eventually help in increasing convenience of a person’s daily life. Since our group members are Henny, Azry, Poh Teng Foon, Kelly and Seah JingKai, we decided to use one of Henny’s 5 ideas for her targeted audience group. That idea was mobile phone wallet and we will be polishing that idea thoroughly. We believe that the mobile phone wallet is not just a wallet that can send cash by sms and pay bills or the likes but rather it has the ability to do much more like a multi-functional SIM card that has many other integrated functions which will help provides many services with the network operators.
The services
Credit Card services integrated into mobile networks
Our idea for this service is very simple, currently in the world there are many ways of making payments such us by the conventional method of using hard cash, payment by cheque or even payment by using Credit Cards. There are also many other types of cards that we eventually have in our wallet or purse. So why not make it easier and less hassle by having a mobile operator that helps you to make payment by Credit Card through your mobile phone instead of the trouble of having to look for your credit card? Since there are already services where you can actually send an SMS to your mobile operator and buy a drink from a vending machine where the cost is then deducted from the person’s mobile phone account or sent to his mobile phone bill, it isn’t hard to imagine a service where we can actually make payments with the credit card by using our mobile phones through the mobile phone operators. Through our researches, we have found out that bank credit cards are the most commonly used in the world right now. Basically, the mobile operators will have to make some business cooperation with credit card payment companies such as Visa, MasterCard or American Express and etcetera as well as banks that handles these transactions. Other than that, right after any purchases or payments made with this method, an SMS will be delivered to the customer regarding the purchase/payment and information on the credit limits as well as other information like when was the last time a transaction was made and where and when will the card expire and etcetera. A person with a mobile phone that has a mobile operator that provides this service will just have to push a button on their phone which will be able transfer credit card information through infrared rays to the laser point reader at Cashier or any other point of sale when making payments. After this, the information of the payment will be transferred to the credit card payment system such as Visa, MasterCard or American Express and payment will be done to the merchants if it’s authorised and banks will be helping the user to pay for the goods or services and at the end of each month, a bill will be made by the banks which will be sent to the user’s for them to pay the outstanding credit card bills. The following picture illustrates the process.
As a result of this, mobile operators will have to provide better SIM cards where it provides chips that are currently used by credit cards. This will then allow users to deal with Credit Card transactions like how they usually do it with a normal Credit Card albeit a little bit differently.
Air Travel Information Portal
Our idea for this service concept is very simple. We basically cooperate with the major airports around the world for collection of updated information on airline flights, bookings and many others related to air travel. Basically, any users of this service will be able to get information on flight bookings, flight schedules, airport’s related goods/services such as airport hotels or motels and lodgings. Basically, information that has to do with air travel will be available fast and easy through the mobile phone. What all the network operators have to do is to merge business cooperation with the airports around the world and form an international information portal on major airports goods/services as well as flights so that air travel freaks will be able to get their hands on the latest news and updates on their favorite airports and flights information. There will be a central database which holds all information regarding this air travel information in the network operator’s main headquarters. Users that request for information will just have to send SMS with certain easily accessible numbers and get a respond from the database for the requested information. The process will be
illustrated by the following diagram.S.W.O.T Analysis
Strengths
Convenient as there won’t be any hassle of trying to look for your credit cards which is probably stuffed inside a whole lot of other cards in the wallet or purse
Acts as an all-in-one mobile phone as we will be able to make purchases and payments through the phone using the credit card system embedded in the phone which is provided by the network operator as a service
It is also much more convenient because users do not have to waste the time and effort to subscribe separately for a credit card somewhere else as they can do it when they subscribe for a new mobile phone line.
Purchases and payments made using this method is extremely easy and fast as shown earlier with a diagram as we do not have to use the conventional method to make signatures on the payment receipts. The network operators will have made the attempt to verify that the purchase is made the rightful owner and thus no need for a signature.
To prevent fraud, there are the conventional methods of implementing PIN codes when making payments as well as signatures. Now, with the integration of Credit Cards onto the mobile phone networks, we can have double verifications for better safety from frauds where there are verification methods done by both the network operators as well as the credit card companies.
Weaknesses
The security verification system implemented is too troublesome. This is because when a user uses this service to make payments or purchases higher than certain amount like RM5000.00 they have to go through a series of verification processes before completing the purchase or payment. For example, keying in the wrong PIN code results in a series of questions that the user has to answer to verify him/her.
Inconvenience if wrong PIN code keyed in because it will automatically block the SIM card (as a security measure). The user will have to personally call the customer support for the network operator he subscribed to clear the blockage.
The interest that has to be paid for the service will be doubled because other than the interest that has to be paid to the credit card companies, they have to pay to the network operators as well. This then doubles the cost.
Opportunities
According to market research, we found out that this idea is relatively new. If we were to implement it, we will undoubtedly be the world leader in this new found service. As a result, we are able to easily fight for the tender and copyright for this new type of service from the top three Credit Card companies namely Visa, MasterCard and American Express.
Helps to build the Malaysian economy indirectly. This is because if we’re the pioneers in this field, any foreigners that venture into our country are bound to have at least one credit card and by knowing that this service provides credit cards capabilities, they are bound to apply or subscribe to one of our local telco network operators for that service. So in the end, there are more business ventures into our country helps to develop the economy and increases the power of our economy with investments from outside. Other than that, if foreigners do not have credit cards and are willing to apply for one, they can find it easy to just apply their new phone line together with a new credit card service and everything will be done by the telco network operators.
Threats
Since this is a relatively new service that has never been implemented, it is quite hard to gain trusts from users on this new service for fears of its safety and its stability. Users might be afraid of security reasons like frauds and the likes. Therefore, it is quite hard to gain trusts from customers.
Resource Estimates
Initial setup costs
Research & Development(For integrating Credit Cards capabilities into mobile phones + phone’s interface) – RM 10,000,000.00
Setting up of FAQs, Customer’s Support Section – RM 250,000.00
Setting up of Air Travel Information Portal Database(Servers, Maintenance Team with coders) – RM200,000.00
External costs
Cooperation and contract of the network operators with credit card companies and local banks – RM1,000,000.00
Cooperation and contract of the network operators with major airports around the world – RM75,000,000.00
Advertising Campaigns + Promotions – RM1,500,000.00
Fighting for tender as well as preparing against possible lawsuits – RM10,000,000.00
Why will our concept succeed?
It will succeed because nowadays, people are living a much more convenient life and our concept is fundamentally convenient based. This will suit many people nowadays as well as in the future. With a superb security feature, it really helps to improve the chances of credit card frauds and prevent any unauthorized usage of the credit card through the phone.
It will succeed because it helps to build the Malaysian economy indirectly. This is because if we’re the pioneers in this field, any foreigners that venture into our country are bound to have at least one credit card and by knowing that this service provides credit cards capabilities, they are bound to apply or subscribe to one of our local telco network operators for that service. So in the end, there are more business ventures into our country helps to develop the economy and increases the power of our economy with investments from outside. Other than that, if foreigners do not have credit cards and are willing to apply for one, they can find it easy to just apply their new phone line together with a new credit card service and everything will be done by the telco network operators. This will eventually make the local government be proud of this service and try to support the idea fully as it benefits the country in general.
Why will our concept not succeed?
The resource estimates shows that the cost of setting up this service is too high. This shows that the profit returns from this service will have to be high in order to cover up the large amount of losses from the initial setup. Too much stake or risk is involved thus undermining the credibility of the service idea.
Customer support might be hard to gain. As new ideas and services are brought into the world, they usually do not receive that much support until much later and the initial stage of the service might be a failure because of that.
Appendix
The Interview Session Questions
1. What do you think of current available mobile services to you? Any opinions?
2. What do you think is the most important services you can think of which might be actually convenient and helpful to you?
3. What were your thoughts upon hearing our mobile service ideas?
4. Which mobile operator/s you use currently? If there is a new mobile operator coming up, would you try or switch to that operator?
5. Do you have a credit card? Do you make use of credit card in purchasing something?
6. Would you pay more for better service?
Answers set from anonymous person no. 1 (Businessman)
1. I’m quite satisfied with it as it is very convenient.
2. Mobile banking. Usually I use it to pay monthly bill, doing fund transfer, check account balance, checking transaction history, as well as exchange rate.
3. It’s a good idea and I believe that it will very useful for me because I’m a workaholic and furthermore, I have to constantly travel. I believe the Air Travel Information Portal will be very helpful to me.
4. Digi. Hmmm. It depends you see. I would have a good look at the features and what it has to offer first before actually trying out the new operator. Money is not an issue for me though. So pricing isn’t a problem for me. What are important to me are the features.
5. Yes. I definitely make purchases and payments with credit cards because they are very convenient. It’s fast and easy to use.
6. Oh, obviously. I would love something new and extra!
Answers set from anonymous person no. 2 (Student)
1. I think they are quite good especially the SMS and the MMS services. I used those two services quite frequently as well!
2. Probably SMS because I’m able to chat with a friend of mine easily without having to spend so much money on calling as SMS nowadays are quite cheap!
3. Credit Cards idea? And Airport? Hmm, not really suitable for me. I’m not too sure but it might be good for business people like most adults. Definitely not to me.
4. Maxis hotlink. Yeah, definitely! If they provide free stuffs that is. I would love to have those free SMS and outgoing call time.
5. Definitely not! I probably won’t use it because I’ll be dead if my dad knows I used it to shop for my favorite clothes.
6. Depends on my budget. If the features are nice and are affordable I might consider but if it’s the opposite, then I probably won’t.
Answers set from anonymous person no. 3 (Housewife)
1. I’m not sure if I like the services like those SMS and MMS. To me, they are a waste of money. Why? Because most of the kids in town nowadays uses SMS and MMS and seldom chat with people using their mouths. They are getting socially illiterate. Plus, these services distract kids from studying well. To me, they are causing a lot of social problems.
2. Probably the Video Conferencing with 3G lines services. This is because they allow me to have a good look at my husband whenever he is abroad for business and I miss him. Makes it feel as though he isn’t that far whenever we talked.
3. Oh, the idea on the Air Travel Information Portal is very useful. It will be perfect for my husband who needs to go on business trips constantly. For me and the family though, it will be great too as it helps me to find the best flight I should catch for vacation!
4. Celcom. Nope, I won’t spend money trying to get a new line if my current one is working perfectly fine.
5. Yes. I use it often when spending money shopping in the malls. It is also convenient for me to use it at hyper marts for buying my groceries.
6. No. Not really, it really depends if I can feel that the better services are really that great then I might consider. If it’s likewise, I won’t.
Answers set from anonymous person no. 4 (Van Driver)
1. Nice, especially the 3G, it is very useful when I am driving & I am able to know where the traffic jams are at.
2. Like I mentioned before, identifying the traffic jams.
3. I think your services quit good but I’m not very confident with the security of the new services.
4. I’m using Maxis, for now I don’t need to change, because I’m happy with my current line.
5. No, I don’t have.
6. I dun want to because of just one or two better services. If its more than that I might consider.
Answers set from anonymous person no. 5 (Student)
1. Colorful, with a cheaper price I can do many more things to communicate with my friends.
2. SMS? I can chat with friends just like through online in MSN.
3. Whoa, is your system really going to work? Is it going to be cheaper than the current service?
4. Maxis, if the new operator service is cheaper than Maxis like Maxis’s SMS plan, only one cent per SMS.
5. No, but I would like to apply it if your operator service is famous and popular.
6. Why would I pay more? I’m a student, and I need cheaper services.
Answers set from anonymous person no. 6 (Single parent father)
1. Quite good but I think some of the features such as downloading songs, wallpapers is not really useful but it’s rather a waste of money. My daughter spends so much on these useless things. But of course there are some other features which are really useful.
2. Hmm… maybe an organizer as I need it to organize my bill, phonebook, inbox, as I am a forgetful person.
3. I think it’s not really a good idea. Because it’s too convenient for people in purchasing things so it will lead them to spend more.
4. Digi. If there are no special features that really help, I think I won’t.
5. Yes but I use it very seldom.
6. Depends on the services they provide.
Answers set from anonymous person no. 7 (Housewife)
1. No opinion, I seldom use my hand phone, I use it only to call my husband and my son.
2. Just for calling.
3. Good idea, I think it’s useful for my husband, he always use his credit card.
4. I think its 019, is that Celcom? So troublesome if I want to change my line.
5. No, like i mentioned my husband already has.
6. No, cause I use my hand phone just for calling.
Answers set from anonymous person no. 8 (Housewife)
1. Yea. It’s very good. They provide various entertainments such as latest movie preview, games, video call and etcetera.
2. Video call I think. It makes conversation more fun as we can see other contact person face to face.
3. It’s a good idea. It makes my shopping more convenient and as for the air travel idea, it is a good idea as well as I dun have to call to the travel companies that is so much troublesome.
4. Celcom, if there are any interested features, maybe I’ll try out as I will use two lines.
5. Yes, usually I use it to purchase clothes, and girl’s stuff online.
6. Why not? Of course the important thing is a good service that makes my life convenient.
posted by Azry @ 10:57 PM
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