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Problematic situation. Company viewpoint

Introduction

Nowadays, it is not a secret that new technologies make our life easier and better. Almost every B2C company has a web-site. But today it is not enough and more and more people use mobile devices for surfing the Internet, chatting, buying goods and etc. Mobile devices are replacing computers and business should adapt to it in order to satisfy customers needs. As a result, there are a lot of mobile application for e-commerce projects. Main reasons for that are increasing retention rate and customer loyalty. In this work we will describe the common process of mobile application development for an e-commerce project and focus on the pre project analysis which plays great strategic importance in the application development.

Problematic situation. Client viewpoint

Vladimir S. is currently working as a logistic manager, has 3 years of experience in his sphere. Year ago, he decided to start his own business, as an additional state of income. His business is focused on selling eco-food via the Internet. As a founder of the project, he is applying his professional skills to work on supply chain management and communicating with food providers, and his partner is responsible for marketing.

Technical development and project support is outsourcing - client is working with three freelancers: designer, full-stack developer and content-manager. Founder is not convenient with technical details of his project, moreover he does not have enough time to start expanding his knowledge in that area. The key factor he is focusing on is deadline compliance and specification requirements of the project.

E-commerce project contains 2000 goods item. The back-end is based on Node JS. Database - MongoDB. Front-end technology stack: HTML5 + CSS3 + JS. The web-site is not fully optimized for smartphones. It’s not mobile-first.

Main e-commerce metrics:

· Average bill - 460 rubles

· Conversion rate - 6%

· Abandonment Rate - 8%

· MAU - 200 000 users

· SOC/MOC - 3%

· LTV= 2500 rubles

· CAC - 2060 rubles

However, business is profitable, LTV is not so essential. During marketing research the partner made a roadmap for the next year, where he provided a strategy to increase retention rate and increase repeat purchase. One of the main activity for that is developing mobile application. As for social-demographical statistic:

· 64% of orders of made from Moscow,

· 28% are made from Saint-Petersburg,

· 4% from Kazan, 2% from Ekaterinburg,

· 2% from other regions.

Mostly customers are over 30 years old (70%),

The budget for development is not more than 1 million rubles. Vladimir does not consider mobile applications constructors and services because they are not cheap (about 500-1000$ per month) or their quality is low.

 

Problematic situation. Company viewpoint

A company is specialized on developing mobile application on different platforms: iOS, Android, Windows Phone,Blackberry, Apple Watch, TV Platforms, etc. The company was founded in 2009 and has rich experience projects of varying complexity.



Team resources are divided in the following percentage:

· 7% are working on analysis

· 20% are responsible for design

· 21% are developers

· 16% are management staff

· 18% are responsible for quality control and further application support

· 18% are administration staff

In total company is represented by 78 people, who are working in office in Moscow. Moreover, company have12 freelancers for urgent task.

The studio is in the top 10 Russian mobile development companies.

Ivan P. is a project-manager in the Mobile Development Studio. He is responsible for negotiation with clients, who have assigned project to his company and keeping in touch with them during whole process. During client interview he must determine the main clients aims, and understand the resources required for the purpose of production.

Client found this company after reading their article on profile media resource about how mobile application can increase sales for an e-commerce business. After that he discovered company’s website and found similar already released applications in company's portfolio. He downloaded them, checked and was satisfied with the quality. Then he filed an application on company’s website and then Ivan contacted them and arranged a meeting for a first interview.

Usually, company is dealing with from 8 up to 11 projects a month. In priority for them, projects that can generate more revenue. In order to allocate properly all resources and budget, manager should understand the platforms, client want to see his business at, and development approach.

Below, you can see a comprising of two types of development approaches. Average rate includes rate of all specialist, like analytic, designers, developers and managers

Approach Average rate, $ Amount of man-month Amount of hours Cost. $
iOS/Android
Cross-platform 1.5

 

 

Interviewing

During first interview Ivan should understand Vladimir’s requirements and thoughts about application Then they have to come to an agreement or decide to not cooperate. Fortunately, they came to agreement. Initial interests and final agreements are listed in appendix 1-3. Agreements explanations:

· Project parts:

1. pre project analysis,

2. design and prototyping,

3. development,

4. testing,

5. releasing and publishing in stores

· The company is well-known and not interested in this kind of strategic projects.

· The company is interested in client’s satisfactory and an important part of this is the interaction between the customer and the company manager.

· The project is known and predictable so company may take risk of penalty for missed deadlines, but requires payments on time.

· The division project and payments is convenient for both.

· Final costs and results will depend on the pre project analysis.

We will focus on pre project analysis which has such objective as to choose platform or platforms for mobile applications and type of development according client's preferences.

 


Date: 2016-04-22; view: 759


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