Team initial business plan

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MSc Integrated Product Design DM5562 Strategic Design Management and Research Module Leader James Steward Business Design Audit by TEAM INITIAL Project Direction Lead Allen Tsai Market Research Lead Lina Guo User Research Lead Aisling Wang Product Development Lead Szu Chi Wang

Wear’ther Business Plan Executive Company / Product Summary written by Allen Tsai Wear’ther is a mobile-based application concept developed by digital interaction design startup, TEAM INITIAL. The application generates mixed digital content of daily weather forecast and suitable clothing style suggestion for people to get fashion inspirations in the beginning of their daily routines. The APP has given the users the power to accumulate their favorite clothing image suggestions in the application library as a personal fashion scrapbook for future shopping reference. The stored images are also formatted to be shared on user’s social media account like Facebook for users to have chance to be awarded with shopping discounts when the posts reach a certain amount of hits on the Like Button.

Interface display samples of Wear’ther mobile application

We believe that the process of getting dressed in the morning should be both an efficient and plea-

surable experience. Weather conditions and what to wear go hand in hand. Wear’ther simplifies the everyday activity of getting dress appropriately according to the weather by offering vivid outfit imagery advices based on the weather in your city to make it a single step process. We produce first-hand fashion styles featuring everyday weather forecast on the APP to serve users who have interests in acquiring information about fashion trends and style tips. The Wear’ther application


interface is consisted of dynamic visual elements to keep viewers engaged. Our goal is to utilize digital experience design as a vehicle to capture the shared fashion interests of the APP users, and encourage them to take action on their interest by moving finger across screen to discover the rich and updated content we provide on the daily basis. In order to bridge our APP users greater with our belief in fashion, we are looking forward to create an augmented service by collaborating with investors of high fashion department stores to produce fashion style variations and information and guide the users to purchase particular pieces they seen on the APP as a part of the inherent product experience.

Wear’ther is positioned as both a B2B and B2C business. Apart from providing fashion inspirations to consumers, we are dedicated ourselves in creating an evolving digital advertising platform for high fashion department stores on the B2B side to help them connect with consumers from an alternative channel aside from their own seasonal campaigns and shows. According to academic research, it has shown that human brains work more efficient and tend to have the sharpest memory in the morning. New information humans conceive between 8:00AM – 12:00AM during the daytime has a better chance to be imprinted in their brains, which means marketers have a greater chance to enwrap the audience with their products during that period. We utilize this particular scientific discovery as an aspiration and integrated it with our innovation to help high fashion department stores make efficient exposures in the market. Business Sector / Market Trends

written by Allen Tsai

Wear’ther is embracing its stance within the business sector of Digital Marketing. For high fashion department stores today, retail showroom is the primary avenue for harvesting commercial potentials from the market. However, the physical retail distributions usually come with high cost and there’s no guarantee of success. On the contrary, the growing trend of digital technology adoption has grafted an enormous business opportunity for high fashion department stores to clinch for


making active connections with the modern day consumers. As more and more consumers today utilize cross-platforms moving between multi-screens device (smartphones, PC, tablet and TV) to perform a wide range activities including purchase decision making, it’s imperative for organizations in fashion industry to make proactive involvement in Digital Marketing to connect with their audience as well as to create new ones. Mobile interaction and social media experience are two of the most effective solutions for Digital Marketer to foster audiences over their brands. No other solution can get marketers to talk to the audience more directly and closely like Digital Marketing. The use of technology allows Digital Marketers employ the power of immediacy; it keeps audience’ attentions by organizing all information sources at one place and displaying it with interactive touch points. The digital platforms can also generate analytical results that advancely contribute the organizations with customer demographic data to help them refine business strategies in order to focus targeting the right consumer group and gain significant public awareness. However, Digital Marketing is more than just producing websites and mobile APPs. To ultimately drive return of investment, organizations have to make significant investment in making rapid evolving and rich content to keep audience constantly engaged and exceed competitors performance substantially. It’s inevitable for digital marketers to innovate themselves around strategy planning over mobile devices for achieving better market success. More than half of the mobile users in UK are on smartphones; consumers are now spending an average 82 minutes per day on their mobile device, which creates a great opportunity for marketers to reach out to consumers. Utilization of social media has also been becoming another up-growing movement in the fashion industry for organizations making market exposures. By making intimate conversations and bindings with the audience on digital social network platforms allowing companies to truly understand about their consumers and include them in the scope of future company development in the long term. Company Structure / Design Implementation

written by Allen Tsai

TEAM INITIAL is built around the vision of using interaction design to enhance audience experience on the product we create. We put Wear’ther APP user at first and constantly consider their responses and perceptions in all the works we conduct for showcasing investor’s products with the best representation. Unique interaction experience embedded in Wear’ther APP is what makes us competitive among all conventional Digital Marketing solutions. Creation of Wear’ther is the result of design centered planning across product development tasks in market research, user studies and interface design. In market research, we evaluate designed content from different digital platforms in order to position our own identity and communication manner when approaching to the market. During user studies, we actively classify users’ needs and brainstorming product features for design requirement to both fulfill and exceed users’ expectations. All the data are consolidated in the end and the team utilizes design thinking to transform the requirement into sensual touch points displayed on the user interface. The outcomes of each every product development task is critical in terms of determining product’s final representations to the users, and we are intend to achieve that by integrate personnel with design backgrounds in each area in order to sequentially visualize the final product that can generate the maximum value and impact.


User Profile Research

written by Aisling Wang

Wear’ther is a Digital Marketing platform employed by high fashion department stores in the form of mobile APP. Our target audience is based on smart phone owners. In order to define the user profile, research about general smartphone users will be elaborated in this section. According to Edison Research “The Smartphone Consumer 2012”, the proportion of smart phone user increased 40% in the last year and it is considered to be a growing trend in the future. Among all age ranges of smart phone users, young people (age 18-34) occupied nearly half of the percentage.


Comparing with non-smartphone owners, these young smartphone users spend much more time on the Internet, approximately 3 hours per day and social networking is their favorite online event. They admitted that the frequency of checking Facebook is around 5 times a day and they also post status updates quite often. Once young smartphone users share posts online, the influences are relatively huge because these people usually have twice amount of friends on Facebook than non-smartphone users. On the other hand, a social networking site or service could also be very influential for purchases. Nearly half of smartphone owners think Facebook influences their buying decisions. It is easy to see that the rising of smartphone industry has made a great impact to young people’s lifestyle and the booming development of smartphone applications has just started.


Besides of using smartphone, there are also some distinguishing living habits among these young generations. We have conducted a young smartphone user survey by asking questions across seven critical aspects: 1. Access to weather information 2. Access to fashion trends 3. Shopping behavior and channels 4. Daily dressing style 5. Attitude towards advertisements 6. Methods of adding wishing list We learnt from the survey results that more than 85% of young generations check weather by taking a glance of the weather APP before they get dressed in the morning. The answer tells us that smartphone has replaced TV and radio to be the main channel for getting weather information. The main channel for our users to get fashion information is visiting shops and there is no certain frequency of this as they usually do it by chance. People go cloth shopping both in shops and online while near half of them are usually loyal to their favorite brands and have some basic types in closet, but still think that they need more in order to dress appropriately. Another discovery we found from our potential users is their positive attitude towards all kinds of advertisements. They come across advertisements mostly on mobile APPs or websites and they think the contents of advertisements are helpful as providing recommendations and options. Moreover, advertisements influent their shopping decisions three out of ten times, which reflects the great selling opportunity by promoting products through digital platforms.


Last but not least, the survey result shows that our potential users use their smartphone as a tool of recording things of interests. 80% of users like to take a photo of the product they like then find out more about it later. If they see a fashion image online, they would like to save it to album if they like the style. We believe that promoting fashion items through making fashion look images is the most eye-catching way to reach consumers. Thus, it seems to be a great opportunity that Wearther could attract its users by producing daily fashion looks on smartphone. Approach for Building Userbase written by Aisling Wang For users to locate Wea’ther, we promote our APP through the Apple APP Store. For continuous promotion, we also enhance our influence by cooperating with social networks which users could share Wear’ther contents with friends. On one hand, we are establishing a long-term business partnership with high fashion department stores. We disseminate Wear’ther APP on their websites and mobile apps. These stores’ loyal customers would find that Wear’ther is a free new channel to reach their favorite high fashion department store and it actually connects high fashion with their daily life. On the other hand, a more efficient way to get more people involved is spreading information through social networks, because people tend to feel a shared link from a friend is safe and reliable as well as delightful experiences. The sharing process of our app is a very natural interactive experience that users could post a Wear’ther look on their Facebook page by simply clicking the “Share” button below the main screen image. Once the look being posted on Facebook, Wear’ther will keep getting exposed every time a person sees it or someone hits the “Like” button. As a reward, Wear’ther users get points from each “Like Button Hit” they got from Facebook friends and 50 points will generates a promotion code which they can get 5% discounts from our partner department stores.


Furthermore, user preferences of fashion items could also be recognized from the figure of “Like button hits”. The data is absolutely valuable for department stores as one aspect of our digital marketing service. Gathering feedback from social network users is a fast and economic way to help department stores to truly understand the needs of consumers then revise their business strategy in the future. Traditional Promotion Channels v.s. Digital Marketing Platform written by Aisling Wang In current fashion industry, there are two major seasons per year, Autumn/Winter and Spring/Summer. Fashion Weeks and almost all intensive promotional events are held during these periods. Therefore Wear’ther is considered to be the same seasonal regularity of both fashion and weather. Weather conditions and fashion trends are all main factors that influence people’s dressing style. It is a basic need that people dress themselves based on weather conditions to be warm and comfortable. However, in a higher level of needs, people dress according to fashion trends to look stylish and up-to-date. Wear’ther is designed to be a platform that gives people daily dressing advises and satisfies both needs. Magazines, posters and billboards are common channels of advertising in fashion industry. These methods all acquired certain period of time to produce and deliver, which are costly and inefficient. Among all kinds of traditional promotion methods, fashion runway shows has maintained to be the most important one to showcase latest fashions, but the development of digital technology seems to be a turning point of this. A runway show can cost up to one million dollar to produce while an online show costs virtually nothing. Thus, it has become more common to see that fashion designers and brands promote their fashion items through digital platforms. As leading brands in the high fashion market, luxury brands are spending 30% of their overall ad budgets online, about one third of that budget is spent on display ads while another one third on video and mobile, also social media is an online platform for them to invest. From these data we can see that companies in high fashion market have become regular investors of digital advertising.


There are many existing methods of digital advertising, including contextual advertisements on search engine results pages, banner advertisements, blogs, social network advertising, and advertising through mobile apps. Comparing with other advertising platforms, mobile APPs are closest to consumer’s daily life and its contents could be easily update instantly. On the other hand, the cost of promoting information on mobile apps is relatively low. Therefore, it’s quite beneficial for companies to invest interactive advertisements on APPs.

A B2B & B2C Model written by Aisling Wang Wear’ther provides B2B service to partner high fashion department stores and B2C free service to its users at the same time. We found that there is a lack of innovative promoting methods in the digital fashion market. It will be hard for high fashion department stores to be stand out among all scales of online retailers if they keep using same kinds of advertising methods. To high fashion department stores, Wear’ther is an alternative digital marketing platform for digital advertising and its main strength is using weather information as a carrier to promote fashion items. Our consumers, which mainly are young smartphone users, are expecting more from high fashion department stores and there is a need of getting high-end fashion trends from a user-friendly platform rather than watching runway shows. Besides, considering of the fast growing number of smartphone users, there is a lack of service between smartphone APPs and fashion industry. In this case, it is a great opportunity for Wear’ther to provide a low cost media platform to merge high fashion trends with young generation’s dressing style. Wear’ther is like a good friend who has a killing taste in fashion. Not like other fashion related apps, Wear’ther is not only trying to promote hot

fashion items, but also cares about whether it is appropriate for its users to dress in certain looks under real-time weather conditions.


Competition Scope written by Lina Guo In rapid information development era, website, apps and digital social media penetrate almost everyone’s life today. Under this trend, Digital Marketing in fashion industry has become more and more popular. Wear’ther is a Digital Marketing platform based on two of the most popular needs; it provides the weather forecast, outfit match and the link to the high fashion department stores. According to the popularity of the Digital Marketing channels, the competitions will come from the existing fashion / weather forecast websites and smartphone APPs. Web-Based Competitor Summary Daily Dress Me Daily dress Me uses weather conditions in user’s region to accordingly suggest suitable outfits from Forever 21 with the options to view both girls and guys’ outfits.

Figure screenshot of Daily Dress Me

Social Media Competitor Summary Mulu & Motilo Mulu and Motilo are social sharing and shopping websites, they contain fashion items from hundreds of websites, which allows users to share their favorites fashion items with friends and making purchases online.


Figure screenshot of Mulu

Figure screenshot of Motilo


Mobile Application Competitor Summary Feather Report Feather Report updates the outfits according the local weather condition; also it provides the link to the online department stores of each item. Swackett Swackett shows you the weather in a fun new way by helping you visualize what you actually use weather information for: to decide how to dress. Swackett is state-of-the-art in every way, and includes all the features and functionality you need in a weather app. Swackett features hourly and extended forecasts, satellite imagery, radar (where available) and push notifications.

Figure screenshot of Swackett

Weatherobe Weatherobe is an APP delivers the weather conditions and suggests what to wear depending on the weather in the selected locations. It can provide the suggestion for today and for three days ahead and has actual models to show the outfits. Cloth Cloth is an APP for iPhone and iPod touch that makes it easy to save, categorize, and share your favorite outfits. The APP also lets you send your favorite outfits to this site, for you to post for the world to see. All the photos here were sent in by Cloth-ers. Cloth Weather is an in-APP update that uses real-time weather data to pull the perfect outfits for your current conditions.


Figure screenshot of Cloth

Wear’ther’s Remarkability written by Lina Guo The branding potential of Wear’ther is grown from intimacy of human conversations. the “Lovely weather, isn’t it?” and so the conversation started… The weather is a conversation helper in social situations the world over. Why is this? Universally, the weather is probably the safest icebreaker to avoid conversation droughts. The weather affects us all. It’s also ever changing, which means we have something new to talk about everyday. You can share weather comments with strangers and lovers, and with superiors and subordinates. You can talk about the weather anywhere in the world. So, the weather unites people. Since weather is a popular topic, do people check weather a lot? 81% people check the weather online. The vast majority of people actually find some utility in forecasted weather. People might need weather forecast to plan how to dress themselves or their children, planning weekend or travel activities, plan social and job activities, plan the commute methods or even send the weather information to the people you care. The chart below shows the use of weather forecast.


Percentages of people need to check the weather forecast to plan their clothing is higher than the others (apart from people just want simply knowing what the weather will be like). The basic need for people is to buy clothes to keep warm, and then they might want to be appropriate with the occasion, some people even want to be stylish and eye-catching. Roughly 27 percent of the world’s consumers shop via the Internet. 12% of UK consumers buy clothes and shoes online and the number will be slightly bigger when the weather changes.


Smartphone users are also increasing incredibly. Smartphone represents a new lifestyle. It allows people to carry information and to access it everywhere they go. International research firm Parks Associates forecasts the significant growing number of smart phone users that over 2 billion people worldwide will own at least one smartphone in 2015. Our APP Wear’ther is remarkable because it meets all needs from the basics (dress to keep warm) to the high-levels (dress to be stylish). We provide the weather forecast, we tell you what to wear to keep warm, we suggest what might be stylish and we guide you to the online stores. Apart from that we grasp the optimistic business area that the smartphone APP as mobile marketing is a growing trend. Our Unique Selling Proposition

written by Lina Guo

We Catch Users at the Right Tme and Rght Place Dr. Jane Oakhill of the University of Sussex has conducted a number of psychological experiments to determine which time of day affects your memory. And what she’s discovered: in the morning we tend to be better at declarative memory task- which is our ability to recall exact details, like names, places, dates and facts. So what that means is this: when you are planning out your day, you want to study new material earlier in the day. In other words, the morning is best for researching information.

According to our survey that the majority of people would like to check the weather in the morning after they get up. Imagine when people open our APP in the morning to check today’s weather, some of the decent outfit comes up with attractive models - they probably will recall this look even after they close the APP. It will increase in probability for the users to access the APP later and get more information about the details, maybe more looks at the same time. We are also base in UK, where the weather changing rapidly. People all over the country need weather information to dress themselves which creates more potential to make them our users. We Are Your Best Friend What online stores do? They are selling stuff, making profit, the more the better. It is almost a common sense that stores do out-of-season sale several times a year. You might realize you bought a lot of T-shirt clothes in winter and a lot of thick coat in summer, but still no idea what to wear in the current season. This is the consequence of the retail selling strategy, all they want is selling as much as they can, they do not care if you are keeping warm or not. Our banner-free APP cares about you by remind you that you need an extra sweater, scarf or even bring your umbrella for the day. We also know what style you prefer; we remember it by giving you style references to shop together with you. It might remind one of your friends said before: “I know you would love this! ”. Yes, we are your friends. A friend never leaves you alone, a stylish friend you ever had, and show up whenever you need us.


We Are The Direct Channel for Colecting Customer Profile Date The looks user shared on Facebook from our APP is track-able and convertible. Numbers of received clicks on the Like Button of shared looks can be utilized as a reference for to monitor customer’s taste and trend in the market, which would allow them to have better management in advertising budget allocation in the future. Executive Company / Product Summary written by Szu Chi Wang Our company offers proposal to potential investors, high fashion department stores by providing them a platform to do Digital Marketing, collecting customers information and stimulating the selling. And base on our financial projection, our company is confident in operating an APP in an effective way. In this section, we have make our cash flow transparent to our potential investors. Start with a summary of channels for Digital Marketing - and for us, it’s a smartphone APP. Normally before hiring a coding developer for an APP, a company should define the stages of product development and the features of its APP. The average cost to develop an APP is £3,871, small APPs is £1,800 to £4,800 and more complex or recognized brand APPs can cost £30,000 to £90,000. For a occasionally campaign like Boxing Day special sale or some temporary music events, a company usually buying existing code from program company and hire them to run the APP till the event is over, which is an economic approach ( around £2,000-5000 ) but since the code is copied from another APP and was originally designed for different purposes, it limits interface customizations. If an APP is built for long term business uses then it will need more customized functions like re-directing to e-retailers, product detail search or even unique user interface design. All of these needs require developers to write codes from ground zero. Developing a new APP cost quite a lot ( ranged from £8,000- £12,000 ), however, a well-developed APP will usually start generate revenue within few weeks after released even if it is not popular. Our starting budget is close to £22,000 and 5 month development period to hit the market. We are a Digital Marketing business, we would like to define our business as a long term one by providing a platform for high fashion department store to have seasonal contract hiring over us as an advertising agency. The APP development cost mainly goes to human capital of hiring interaction designers and APP developers. In the first three months of research and development, we will absorb the developing fee by planning the whole user interface design and paying for data base from our pocket. When the structure is set, it’s time to hire two more developers ( one takes £2,000 per month ) working around two months to come out with a working prototype which can be published to let our investors have a trial first, so we can adjust our service base on the user feedbacks. After our APP is officially published, we will need around £1,000 per month to operate it. Equipment is the second largest spending, after an APP starts to run, it will need a huge storage space for data such as user information and our daily looks. Entry server for APP would cost £4,000 in storing normal image base softwares; as the APP grows the cost would increase depending on how popular the APP is. We also need a office with a professional photography studio to have contracted photographer and models to be part of style look production process. The minimum cost is £1,200 per day, four days a month, so for this part it would cost us £4,800 per month.


Note: About 70% cost goes to salary, 20% for equipment ( server ), 10% for other sectors

The reference chart compares five popular APPs and each’s development cost detail

The first four APPs are invested by big companies and have a lot expertise in mobile APP design. For Camera+, it was started by a group of friends who love photography and want a APP able to meet their needs doing research before real shooting, then they hired developers writing code for them. Team members in Camera+ absorbed all spendings by themselves until the APP started to make profit, their salary had been re-calculated afte they went through payback period. Investor Collaboration written by Szu Chi Wang Our cost management is similar to Camera+, we will absorb the spending before showing a working prototype to the investors. After we come down to agreement with our business investors, we will start charging them by three different ways or a combination of all. For the first approach, we set up annual contracts with high fashion department stores so that they can have user information for marketing research and the right to put their product on Wear’ther. Fashion trends is base on seasons, and four seasons make a whole fashion life cycle, so our company will discuss new direction with our investors each season. Besides, we can also co-operate with special events that our investors have occasionally. In the second approach, we send out our styling coordinator to help our investors design looks for each week use, and they will be charged for how many looks they publish on our APP by sets, in which it would be fair to all investors from different stores. The third way is to co-operate with social media platforms like Facebook to expose investors’ products by users sharing looks on the site. To encourage user to do so, our company provide promotion code which can only be shown in their own smartphones, which they can use later for getting discount for both online and in-store shopping. After users log in our APP and share looks to social networks, we can track that how many “Likes” each shared Look Image has, by getting 50 likes a months users will receive a promotion code lasting for one month. The promotion code can give 5% discount for users. This discount actually comes with 5% profit for our company as process fee, so there would be 10% for department stores to give out as advertising fee.


The social media promotion reward flow chart

Cash flow projections


Annual financial summary of our business


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