Utilizing in-house or outsourcing for mobile application development

Discuss about the Business Model Innovation and New Venture Growth.

Contemporary means and mechanisms are the most required factors for any of the business corporation and the same are required to be adopted efficiently and effectively. These means and mechanisms aid the business on various grounds and aspects (Wills 2014). M-commerce is one of the contemporary method on which the task is developed, Al Zehra Pharmacy in Muscat, Oman is planning to develop a mobile application for tackling the competitors.

In this task, there are various sections on which I have executed research and from which the first segment is about making the decision regarding the choice of development of the mobile application by utilizing in-house option or outsourcing should opt. In the second segment, I observed and noted that the app development is categorized under E-commerce and the same has been described by me in this section. In the next section, I noted down the reasons due to which the XYZ Company is able to develop strong relations by making use of M-commerce system. This segment is describing the approaches of m-commerce system that is bridging the gaps between the company and the customers (Dudin et al., 2015). A proper justification has been provided for the process, that how the m-commerce system is bridging the gaps. And the last segment is describing the reason due to which the XYZ has offered the distributors for making the use of a mobile app for distributing the products and services of competing brands.

According to my observation the task is basically focused and developed on making the move of the business organizations towards more and more use of mobile commerce applications. M-commerce and mobile applications are the contemporary means and mediums of operating and executing the business that will be proven beneficial for the organizational structure. The task has been presented in the form of critical evaluation of how this transition is strategically developing connections between the business models (Fan et al., 2017). The critical analysis will be depicting both the sides of the concept that is negative and positive aspects of the concept. A critical evaluation of the concept will provide a depth to the knowledge and some core data will be analyzed and collected over the same concept.

In this task, a report has been presented by executing research and this research and report comprise of the trends and various aspects of the concerned industry. These trends include various aspects that are considered as liable in stimulating the business or an organization. The report is required to be presented in the form of the executive summary (Muzellec, Ronteau and  Lambkin, 2015). Furthermore, a critical evaluation has also been presented in the form of reflection to the described summary.

Under this task, I will present a proposal for developing a realistic mobile commerce application for the business organization. This has been considered as one of the crucial tasks of developing a new product and launching the same in the market region. There are various stages presented in the given scenario on the basis of which the proposal is required to be developed. Only the proposal for the application is expected to be developed and no implementation for the same is required (Ng, 2017). This proposal has been segmented into 5 major stages on which the proposal for application will be developed.

The benefits of using M-commerce applications

Mobile application development should be in-house or outsourced

The below presented are some of the facts that can be considered by XYZ while making the choice for in-house or out-sourcing for making the mobile application development:

The modern technologies have turned upside down the complex apps, for the benefit of its users. The professional inbuilt of mobile apps to its customer depending on their use whether it’s been used for retail business, wholesale or simply e-commerce. A mobile app can be developed by both in-house and outsourcing ways. There are literally millions of options for the customers using mobile apps for services (Onken and Campeau, 2016). Various e-stores and mobile stores like XYZ as well.  Customers can conveniently download these apps and meet their needs from an online portal (Hoeing 2015). Everything these days is becoming dependent, for example; banking. A customer is interested in standing in long queues for cash deposits or transfers. From marketing online to posting good content on a blog everything can be done on the phones.

There are two specific types of mobile development techniques i.e. in-house and outsourced. They both certain pros and cons and one can take the decision according to them:

It is used by the companies who want cheap, quick, simple and efficient and adept development. It can be controlled by the parent company to look after its operations as per their requirements.

A professional company, especially for the development, is hired. It is the wise step if we want to save time and money and have a superior quality app that delivers value (Roberts, Earnhardt & Herron, 2017).

The final decision should be based on the cost factor and risk-taking (Rüb, Bahemia and Schleyer, 2017). And since competition is so high and quality also matters an outsourcing development will be the best option for developing the app for XYZ. Because in-house has loss factor in the mobile development phase.

Mobile commerce also is known as m-commerce is the sales of goods and services through mobile applications. The term, mobile devices means mobiles and tabs and laptops don’t fall into this category. Mobile commerce can be seen as a part of e-commerce. It is a subset of e-commerce.

Online self-service: The millennials want to do everything at their convenience, they want to get empowered and get things done. The DIY culture moves into customer service. Today customer is busy and often need a mobile in handy for their work. They solve their problem quickly and independently (Sathananthan et al., 2017). Customer demand is easily met by just self-service for example; one can simply go to the company website to change the address with the company without having to talk to any representative, similarly, you can the bills as well. FAQ’s are there to solve the problems and this brings a sense of loyalty among the customers for the company.

Email and push notifications: Mobile commerce allows XYZ to send emails and push notifications of any latest offers and order shipment and back-ordered is available. The company sends a text instead of a call along with the ability to confirm or cancel.

Developing strong relations through M-commerce system

Social service: Social media like Twitter or Facebook gives an amazing opportunity to the company to make the customers happy while all their friends watching. These platforms allow the customers to directly message the company requiring a response. As a result, most people stay in touch with the company through these platforms and they expect a quick response.

Messaging apps: They widely used and are convenient and have an easy and informal way of love towards the customers. It has an engagement of customer of voice and chats solutions.

Live chat: People expect the immediate response to their problems and by live chat software tools one can connect to the company through personalized, online communication (Tonchev et al., 2017).

When it comes to m-commerce it becoming more imperative for the company XYZ to stay connected with their customers. From shipping updates to post-purchase support, brands can channelize their sales capabilities to the customers.

Mobile commerce has come a long way after doing e-commerce which is changing the landscape of business these days. It is the delivery of electronic commerce via the wireless technology of mobile devices. It is the combination of electronic commerce and developments in personal computing, which has leaped forward from desktops to mobile phones, drawing a new phase of any time, anywhere technology of wireless technology (Zhang, Sun and Lyu, 2017). M-commerce is a preferred method for digital transactions of content delivery faster and more secure. Whether a business is big or small m-commerce has seen immense growth in investments in the recent years.  Mobile today is beyond just a calling device as it is also used for commerce for most retail outlets. At least 9 out 10 customers learn about a product on their devices and m-commerce accounts for nearly 70 percent of the business in the world right now. It is fuelled by the use of mobile phones backed up by a good telecom infrastructure. Businesses are looking for better ways to enter into a relationship with their customers and m-commerce is one of them. They are recognizing the value of collaborating with competition to study consumer behavior. Convergence of technologies is available anywhere and anytime to extend their reach. The B2b have not yet adopted the mobile commerce technology well. They are quickly falling into the B2C. The m-commerce follows the logical architecture.  However, one thing which is common for all is that enhances the brands (Banerjee and Soberman, 2013). The recent growth in the innovations of mobile commerce is molding into a sustainable business model. It is believed that traditional value chains will be cooperating to create a network value. The companies are however facing difficulties in framing the type of cooperation and having anticipated profits. The business models are strategically aligned to the telecom industry. And a need for an efficient business model which has guidelines around services and responsibilities of the stakeholders. Creating propositions for a valuable business network for everyone participating in sustainable relationships. Most of the m-commerce is considered an extension of the e-commerce and has significant use of mobile and wireless technology. M-commerce is an evolution of e-commerce from fixed to wireless data channels. Practically, m-commerce is always not similar to e-commerce. Although they do share aspects with each other and possess characteristics that define each of them independently. Several researchers say that mixing both the concepts can be misleading because the value chains for m-commerce are completely different as compared to e-commerce. M-commerce should not be considered a substitute for buying goods on desktops. The apps have benefitted an e-commerce infrastructure and may not necessarily match up the standards due to big fundamental technological differences. These factors should be strongly considered in more m-commerce applications. There is a need for thinking beyond the internet commerce and look for appropriate for m-commerce. A business model is the map of how the services, products or innovations. The concepts define how a company interacts and transacts with partners and suppliers. A business model converts the potentials into economic outputs, directing towards sustainable value creation. Creating a model is nothing like writing a book. The challenges of constructing a business model are the requirement of connecting and managing design choices in different domains so that makes sense like a good book does. And it should also create sufficient customer value and networking actors. The main concept in the whole business paradigm is the perceived benefits and costs of production for customers in a target market. A viable business model including device manufacturers, content producers, distributors and other cooperating in the value chain to run a profitable company and use sufficient incentives to manage the network (Baroto, Abdullah and Wan, 2012). To be successful in enabling technologies for the business model innovation and adaptation of devices, services is not an exception. To achieve the success in m-commerce people tend to have innovative modifications of existing e-commerce applications, an environment where all the efforts to evade the critical factors to focus on mobile communication limitations and the development of applications and devices and value objects which are exchanged.

Offering distributors use of mobile app for competing brands

After analyzing the experts report it has been evaluated that Oman Airports Management Company SAOC indulges in the management activities and practices of Muscat International and Salalah airports. The other operations executed by the association is the management of the airport assets facilities, infrastructure, projects, and development and maintenance plans; aerodrome certification and compliance, emergency planning, capacity management, and customer services; airfields, terminals, flight information, and firefighting; commercial areas, such as retail, real estate, fuel farm, concession agreements, car park, airport space adverting, corporate communications, and airline marketing; and information, communications, and technology at the airports. The experts also stated that the business association is also engaged in making provisions for financial management services and collection of revenues from aeronautical and non-aeronautical sources. According to Khan Talib and Faisal (2015), M-commerce is used in different areas such as finance, retails, services, information technology services as well as telecommunication. Since it provides different benefits in terms of making liaison with the customers. M-commerce facilitates the convenience to the company as well as users. Customers can use M-commerce for shopping, download media files as well as banking with just a few clicks on mobile devices. M-commerce also advantageous for the company due to different outstanding characteristics compared with the receptive website as well as the mobile site. 

In contrast to this, Ozturk et al. (2016) evaluated that M-commerce facilitates the flexible accessibility to company and users. Through M-commerce, the company can make online presence by connecting with users. There are several mobile messengers and another mobile networking platform, where the company can online to provide flexibility to users. It would be beneficial to increase the productivity of an organization.  At the same time, users have the opportunity to shut down their mobile device after accessing the products and services as it could be a good thing.

In the view of Gandhi (2016), M-commerce provides easy connectivity between company and users. Mobile devices can connect and do commerce transaction due to the availability of network coverage in the wider area. It not only facilitates the opportunity to transact mobile to mobile but also mobile to other devices (Basil, 2011). There is also no requirement for the modem as well as set up of Wi-Fi connectivity.

In opposed to this, Liébana-Cabanillas Marinkovi? and Kalini? (2017) opined that M-commerce also provides the personalization facility to the company. Each mobile system is generally dedicated to a particular user as it is a personal device. Hence, users can purchase the products and services whenever they want. It also allows users for making modification in wallpaper, change view setting and contact data and also permits to send e-mails and e-payment without any difficulty. It also saves the time of company in terms of making transaction as it can directly take the order from users as there is no need to plug anything such as wait for the laptop to load.    

Hussain Mkpojiogu and Kamal (2016) stated that M-commerce boosts the retail activity in the marketplace. E-commerce solution with software as well as smartphones applications plays a fundamental role in the retail market even in the case of economic crisis. It also aids to build close association amid retailers, consumers and brand merchandise through distinct feature such as to get the achievement in both providing great mobile shopping experience as well as earning high returns.

Proposal for developing a realistic mobile commerce application

In favor of this, Islam et al. (2017) stated that m-commerce provides convenience regarding electronic payment services on mobile. Payment could be transferred easier and more secure by using the M-commerce. This kind of commerce provides support to the company to offer different payment methods for customers to pay bills electronically, and purchase prepaid cards because mobile phone cards are used to solve the complex transaction.  
Mohammad Salameh et al. (2018) discussed that M-commerce is used by the company to sales of digital content on mobile devices. Due to ease process of mobile devices, the company can sell the content and purchaser can exercise anytime they want. Users can pay honestly for each digital information and registered users can use the services regarding online digital content. Mobile commerce is growing area in today’s business phenomenon due to its unique features as well as offering benefits to the business (Bickhoff, Hollensen and Opresnik, 2014). There are different tends in M-commerce named business-to-business, consumer-to-consumer and business-to-consumer, which could be used by an organization to improve their productivity and get higher profit.
 In contrast to this, Hussain Mkpojiogu and Kamal (2016) evaluated that there is a certain factor, which may cause M-commerce to grow such as an Internet-enabled mobile handset, personal digital assistants, and portable computers are becoming more recognized amid business and customers. Another factor is wireless network infrastructure and support is continuously being advanced by the company to facilitate the faultless access as large number of customers use M-commerce to shop the products and services. 
Liébana-Cabanillas Marinkovi? and Kalini? (2017) stated that mobile has no big screen as laptops and desktop as customers tired to navigate more to select one product from different alternatives. As a result, it may affect the shopping rates of an organization. It is stated that every new technology has a certain issue at the initial stage. In such way, M-commerce is a new application hence, sometimes, people may resist alteration that is promptly changing.  Since people are habituated to purchase the products and services from e-commerce.
In opposed to this, Gandhi (2016) evaluated that each business faced their own risk. Mobile commerce is growing area and there is a need for the high amount of making the investment. It could be riskier for business as technology changes day by day. In addition, there is less security in the wireless network as there is a high possibility of hacking in data transfer.

The proposed mobile application is a basic M-commerce application and is developed with some basic features and characteristics. The prime objective of making use of basic features is increasing the usability of the application (Boone and Kurtz, 2013). These factors will provide an ease of access to the application and a greater level of convenience will bring a boost to the customer or user satisfaction. Al Zehra Pharmacy in Muscat, Oman will be making use of this application for offering marketing and sales services to their customers with some compact features. The application will comprise of some basic steps that will aid the customers in making the purchase of the products. And also delivery options are made available (Jackrabit 2015). The steps will guide through the options or the categories of the products made available for the customers, after whom they are guided towards the payment gateway and different modes of payment are made available. The users will be utilizing these modes as per their convenience payment modes. Moreover, contemporary delivery options are also made available for delivering the products.

Cost factor and risk-taking when making decision to develop mobile applications

Design specification documents and Technical specifications documents are the main documents that will be setting out the computing logic of the developed application. Technical professional and experts are also required for developing these documents. There is a large difference between the design specification document and technical specification document. The design specification is primarily made focused on the intended functions and operations and also on the look of the application (Brumfitt, 2001). Whereas, the technical specification documents will be providing details about the working or the functions of the application and implementation process. Moreover, there are other technical requirements for the applications such as in terms of the number of users the entity will have to execute market research over the users of the mobile applications. The data stored in the application is also required to be measured while developing the application, in the present scenario Al Zehra Pharmacy will be requiring to store a large number of prescriptions and the medical facilities that can be offered by the firm. Security is another factor that is required to be assured for safeguarding the data and other details of the firm, products, and services (Chakravarthy and Coughlan, 2011). After conducting analysis over the collected data and documents it has been concluded that there are no conflicts between the various technical requirements.

Wireless application protocol brings the internet content and advances service to the mobile phones for applications and wireless devices. Taking into account the limitations of a today small screen, low bandwidth and low power. It is used for the new generation of media phones for the mobile commerce application.

WAP gives an overview of the associated technologies which is used to take full benefit of it. It covers the protocol and architecture and what servers and tools are available for the developers today and how to develop the servers for the app development. It provides a new market for app development. It is a new mobile-centric internet application system. Due to lack of internet development material WAP helps untrained developers.WAP Development with WML and WML script provides tools.

JINI is a network architecture a lookup service using either a unicast interaction or broker communication between a client and a server. A client can use a proxy server to locate a service, performs a request on the service and returns the result to the client. It is more convenient than JAVA.

It can be the centralized model and is not fit for large systems. Although it can be horizontally scaled that listens to a multicast group.

Al zehra pharmacy is an m-commerce company and it needed a mobile application for it. The prime objective was to increase the usability of the application. The technical specifications will tell about the details of the architecture of applications and the implementation process. The basic steps involved in the working of the pharmacy like from order to delivery will be available to users. The application will be designed with tools like WAP script and JINI which are far better than the JAVA script.

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