Information systems brief 1-2 pages paper

SIGNATURE ASSIGNMENT 1

Signature Assignment

Felicia Kaligis, Mungyiu Ma, Kasey Liguori, Marlene Ruiz

Isabel Treidl

Management Information Systems

SIGNATURE ASSIGNMENT 2

Table of Contents

Company Introduction ………………………………………………………………………....... 3

Product Extension - iCar………………...………………………………...………………..…..... 5

Customer Strategy ………………………………………………………..…………………..….. 8

Questions ……………………………………………………………………………………….. 12

Systems ………………………………………………………………………………………….20

Conclusion ………………………………………………………………………………..……. 22

References ………………………………………………………………………………...……..23

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Company Introduction

Apple is best known for the creation, production, and sales of smartphones, computers,

tablets, wearables, accessories, and other related technology services. They have been considered

a Silicon Valley trendsetter for decades, and have amassed a cult-like following over the years

through targeted product launches and consistent innovation. The tech giant continues this

success by focusing on customer experience, and making it an integral part of their marketing

plan. Notably, Apple is a “designer” firm that likes to develop all components of a product,

including hardware, software, and web services. This hands on approach has allowed the

company to create some of the most stylish and user-friendly electronics. Apple has positioned

itself as a premium brand in the global market, targeting not just American consumers but Apple

customers from Asia to Europe. Consequently, customers globally associate its products with

quality and are willing to pay higher prices to support the brand. Malls were overflowing with

eager Apple supporters and consumers during the release of the first iPhone, as it is truly a brand

that early adopters latch onto. Millions of people believe that Apple's products are superior, and

they have started to equate the company to a luxury brand in the information technology sector.

Apple has not only built luxury, yet user-friendly products but has created a strong sense of

community and loyalty among their consumers. Unmatched by any other technology company,

Apple consumers show extreme amounts of brand loyalty, for numerous reasons but the main

one being the consistent innovation and customer based business model.

Apple's product development philosophy can be divided into three aspects: First, they

understand customers' needs better than anyone before they develop a new product. Second,

apple decided to filter out unimportant opportunities to focus on doing what it had decided to do.

Finally, they are strict about the quality of their products, emphasizing creative and professional

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presentation. (Allen, 2011) That means Apple never makes uncertain decisions. Once it does, it

must do its best. From Apple step by step into the public field of vision, they keep refreshing

people's knowledge of technology; The persistence of quality also makes the masses more and

more trust and rely on each product they launch. Today, one of Apple's most valuable assets, in

addition to its excellent research and development technology, is its vast database of influential

customers.

Figure 1: Apple founder - Steve Jobs (Source: Beattie. 2020)

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Product Extension - iCar

About EVs

The automotive industry has become one of the most critical sectors at economic levels

and in research and development. Sanguesa, Torres-Sanz, Garrido, Martinez, and Marquez-Barja

(2021) show that authorities in developed nations are encouraging EVs to avoid concentrations

of pollutants. Electric cars are the future for a cleaner, greener society as more companies and

citizens start to realize the true harm of pollutants and the importance of alternative

transportation. Sanguesa et al. (2021) show that EVs are more effective than gasoline cars.

Consumers are starting to notice as well, with an increasing amount of electric cars on the road,

people are making the switch to a more cost-effective and environmentally friendly vehicle.

Nonetheless, the well to wheel (WTW) effectiveness is grounded upon power efficiency.

Sanguesa et al. (2021) indicate that EVs powered by renewable resources show an overall WTW

efficiency of up to 70%. Apple should consider EVs powered by renewable energy in their

innovation process, as this could be an element that sets them apart from competitors. EVs use a

big traction battery to power the electric motor and are recharged using plug in a wall outlet or

charging appliances. Due to the fact that EVs run on electricity, they emit no exhaust from a

tailpipe, which helps reduce the pollution present in the air we live and work in.

Why EVs are an Opportunity

In the article "The Discipline of Innovation," the author mentioned seven sources of

opportunity: unexpected occurrences, incongruities, process needs, industry and market changes,

demographic changes, changes in perception, and new knowledge. (Drucker, 2002) Obviously,

the development of electric vehicles is an opportunity for "changes in perception" because people

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only need cars to move quickly in the past. Still, now people have begun to realize the

sustainability of the earth's resources.

Many countries as shown in figure 2 are selling EVs. Gil-García, García-Cascales,

Dagher, and Molina-García (2021) show that in 2019, about 2.1 million EVs were sold

worldwide. The sales will continue to increase as more people purchase EV units, and use their

buying power to support a more sustainable future.

Figure 2: EVs sales worldwide (Source: Sanguesa et al. 2021)

Why iCars are a fit for Apple

As one of the world's top international brands, Apple is always actively undertaking

social responsibilities. On its website, Apple promises to make its supply chain and products

100% carbon neutral by 2030, along with a revealing promotional video. They promise that by

2030 the clean energy apple creates will be entirely offset by the carbon it consumes, meaning

that every Apple device will have no climate impact on the planet. So to further that goal, Apple

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should launch a brand new line of electric cars -- the iCar series. That would not only make the

company more profitable by responding to market demands, but it would also do a bit more for

the world and its customers, who believe deeply in Apple.

It's important to note that while Apple is a computer company, the electric car has now

evolved into a large, operated computer. Whether it is the system's operation or the uploading

and processing of data, the operation logic of electric vehicles is highly related to the computer.

In addition, although there are already have a lot of electric car brands and Apple cannot be seen

as the pioneer of the industry, with the accumulated customer trust, they do not need to quickly

seize market share at the very beginning to gain a large number of loyal users. A relevant

example is the time of iPhone started to support 5G technology. Therefore, as long as Apple

strictly controls the product quality of iCar and uses IOS system to establish a unique data

platform, it is believed that this product will cause huge waves in the market once it is launched.

Figure 3: iCar rendering model (Source: Apple Explained. 2021)

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Customer Strategy

When building the new branch of Apple Electric cars, it is imperative to consider the

customer needs the company will satisfy. Apple's target customers are Gen Z innovators and

millennials, who understand environmental responsibility and have many IOS system’s loyal

users. Apple aims to connect with these consumers and create a EV that encompasses functional

sustainability and quality. Although the company has stiff competition from existing brands, its

computer technology advancements will ensure customer satisfaction through environmentally

sustainable and low emission automobiles and deliver benefits such as increased health and the

ease of at-home charging stations.

The electric vehicles market is expanding, and there is continued demand for these

eniromentally friendly vehicles. According to MarketsandMarkets (2021), the global EV market

is expected to grow to 34756 units from the 4093 units in 2021 by 2030. The need for more

electric automotive vehicles is due to its capacity to provide low to zero emission transit

opportunities for everyday commuters. The vehicles are not only eco-friendly, but provide better

performance, require lower maintenance, and eliminates the cost of traditional fuel. iCars seek to

meet such customer needs such as environmental and sustainable development/innovation,

reduced operating costs, lower fuel prices, and easier maintenance. The company aims to ensure

practical and ideal EV’s for the everyday commuter because of their high efficiency with benefits

like regenerative braking and connectivity (Hui, 2017). EV battery price reductions, connected

cars, battery management systems, Smart charging, and wireless on-the-go charging are the key

market technologies that will impact customer satisfaction. Thus, a customer who purchases an

iCar will enjoy zero-emission eco-friendly cars with increased disposable income prior to a

traditional gasoline fueled vehicle, due to reduced battery cost and management.

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Figure 4: The forecast of global EV market (Source: researchandmarkets, 2021)

Advantages

Being at the frontline in computer advancement and innovation, the company seeks to

provide enormous customer opportunities such as new battery design. The company's

enhancements and technologies ensure that an increase in battery range will reduce charging time

(Faizal et al., 2019). Customers will enjoy opportunities in connectivity functions to assist in this

process by offering online services that will navigate us to charging stations, remote car data

access, or schedule charging times. With an expansive charging station network, and charging

times shortened, the vehicle’s flexibility will increase. Most people use cars for their daily

short-distance commute; an electric vehicle is just as suited to this as a conventionally powered

vehicle. Although Apple aims to not only make an alternative “commuter” car, but one that can

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truly go the distance. From the office to the weekend getaways, consumers will be able to enjoy

the ultimate EV experience with it’s long range capabilities and expansive charging station

network. Additionally, the company seeks to integrate these vehicles with an autonomous

driving system derived from innovative manufacturers, putting it ahead of current competition.

As a result, the adoption rate of EVs will increase, and carbon emissions can be reduced, thus

ensuring a sustainable future for the environment.

It's also worth noting that Apple's unique IOS system will play a major role in iCar

design. iCloud allows users to stream their data in real-time to any personal device in a wireless

environment. For example, iPhones can transmit health data to iCars, and then iCars can suggest

users walk to the destination according to the mileage data of the apple map to achieve the daily

exercise target. What's more, users can attach their iPhone or iWatch to iCar and unlock the

device with a password instead of a separate car key. In short, Apple can build a lot of innovative

features with IOS. Since other EV manufacturers such as Tesla do not make personal phones or

computers, they do not have apple's unique advantages, which will make iCars fundamentally

different from other EVs. Another benefit of this is that it improves stickiness between apple

products. People who own an iPhone will want to buy an iCar, and people who own an iCar will

want to buy an iPhone to maximize the product's functionality.

Apple’s Major Products Tesla’s Major Products

iPhone Note: They are all in different categories, and easy to date sharing via iCloud.

Model S Note: They are all EVs, and difficult to data sharing, because most people only buy one car.

iPad Model 3

iWatch Model X

iMac Model Y

Table 1: The difference between Apple and Tesla’s major products

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Risks

Certainly, environmentally-friendly transportation is the way of the future and helps aid

in reducing carbon, however there are associated risks. Particular challenges over a long time,

such as the risk of thermal runaway, expensive battery disposal, serious injury during a collision,

and fire or injury when parked or charging (Panasiewicz, 2019). Electric vehicles offer the best

mileage on a full charge compared with other rechargeable battery options. They are efficient in

terms of energy stored relative to their weight but also highly explosive. Therefore, the company

strives to protect our environment, and at the same time, mitigate the dangers, expenses, and

losses associated with these new and developing technologies.

iCar is set for continued success in the technological world with a new product to

revolutionize the transport and automotive industry. The company's vision for environmentally

sustainable development has led to its innovation to create a new electric car that seeks to reduce

charging time and increase performance. This innovation and its luxury brand in technological

equipment give it an edge against its competitors like Tesla.

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Questions

1. Which key attributes from top competitors should iCar keep, redesign, or change?

In order to differentiate Apple from other electric car brands on the market today, iCar

will have to redesign or change some of its competitors' key features while retaining attributes

that are critical to its survival in the electric car market. For example, Tesla's supercharging

capabilities and one-touch screens have been a significant competitive advantage in the electric

car market. (Lekach, 2021; Mayo, 2021). Apple can retain such designs because their corporate

system is large enough to have the resources to build a vast network of charging points. This is

an absolute advantage no other small electric car brand has, and when it comes to one-touch

screens, Apple is a veteran of the field. It would not be challenging to apply iPad technology

directly to the electric car control panel. It could be integrated with other iOS devices to create a

competitive advantage further.

On the other hand, iCar's key design can be different from all-electric vehicle brands on

the market. Currently, no electric vehicle company has a similar advantage except Tesla, which

plans to produce the smartphone Model Pi (Burnham, 2021). So if Apple could roll out iCar

faster than Tesla and make the iPhone a feature option instead of a separate physical key, it

would create a massive advantage in the current market.

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Figure 5: Tesla’s Referral Program (Source:Alvarez, 2018)

2. What is iCar’s primary target market?

“Most of Apple’s users are highly educated millennials. They are career-oriented and lead

an active social life. Students, executives, managers, and professionals are the primary target

market of Apple Inc.” (Andrew, n.d.) In keeping with the company's overall strategy, iCar's

target market must be the same as other Apple products. Therefore, iCar's target market is the

mid - to high-end Gen Y, Gen Z, and other loyal customers of Apple products. I will analyze the

following three points of view:

First of all, The pricing of Apple products has always been at a luxury level among

similar products, and the middle and high-end consumer groups are more likely to be able to

afford Apple's pricing strategy. In addition, iCar's most significant competitive advantage in

design rests on customers' loyalty with other Apple products. The more apple products you own,

the more likely you are to maximize their functionality. Finally, highly educated users are more

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likely to rely on features such as data sharing. They are also more likely to be interested in

specific features such as health analysis and advice.

3. What is iCar's competitive advantage?

iCar's competitive advantage comes mainly from Apple's loyal fan base, unique ios, and

its long-standing strict control over quality and detail. First, Apple's ios can serve as a nexus

across its multiple product lines. The upside is that the iPhone and iCar can boost each other's

sales. Apple could even launch an opt-in special edition iPhone at the same time as iCar. The

look of the special edition iPhone can be incorporated into iCar design elements and can only be

purchased by iCar owners. That will differentiate iCar owners from other iPhone users, further

fueling the public's desire for iCar. Another advantage of Apple's system design is that it can tap

into user data from other Apple mobile devices, such as the iPhone, to make the car more

user-friendly. For example, iCar could meet a user's daily health goal by using daily activity on

the phone. In conjunction with Apple Map, Siri could recommend that the user park in a cheaper

parking lot that requires additional walking. Finally, Apple has always had rigorous control over

the quality of its products, which has earned the company a good reputation. Therefore, as long

as Apple keeps the quality of its products and adopts the previous simple design style, it will be

recognized by the market and consolidate the value of the Apple brand itself.

4. What pricing strategy will iCar adopt?

Adopting the right pricing strategy determines demand, market share, product image, and

sales volume. Thus, iCar will need to develop a pricing strategy that factors in the numerous

market dynamics to succeed in the market (King, nd; B2B International, nd). Apple has long

priced its products at the mid-to-high end of the world market, so iCar's pricing must match that.

The most expensive car currently on sale on Tesla's website is the Model X Plaid, priced at

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$113,940. Other Teslas sell for less than $100,000. (Tesla, 2021) The introductory pricing of iCar

can be similar to that of Tesla's most expensive models. For a similar example, We can refer to

the Taycan electric car launched by Porsche in recent years. Although the current official price of

Taycan is "from $82,700" (Porsche, 2021), the transaction price of Taycan is about $100,000 on

average based on Porsche's long-term function adding strategy. iCar's pricing strategy can refer

to the $100,000 point because this price can preserve Apple's brand value and is not much more

expensive than other luxury electric cars on the market.

Figure 6: Apple purchases online by income (Source:King, 2015)

5. How will iCar be promoted?

Promotion is a critical component of marketing because it differentiates a brand from its

competitors. Effective promotion helps a company to stay ahead of the competition (Whaley,

2015). Promotion emphasizes the unique attributes of the product and lures customers. Apple

product launches have long been the primary way to promote new products, and iCar is bound to

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have a significant one. To strengthen the campaign, Apple will take part in traditional marketing

that their customers already recognize, including billboards in major cities such as New York

City and Los Angeles, as well as spreads in magazines such as all magazines across Hearst

Publications and various digital media sites.

6. Which marketing channels will be used?

iCar will need to choose the right marketing channels to run the promotion. The choice of

the marketing channels to use is guided by the nature of the product, market, competition, and

the goals of the marketing campaign (Chaffey, 2021). Today, the use of online platforms such as

social networking websites has gained immense popularity. Although Apple will be primarily

focusing on social and digital channels to promote their products, Apple has created a fan base of

users that have ultimately designed a “marketing” system of its own. Apple, as a top global

company, no longer needs large-scale advertising to occupy the public's attention for its brand

value. As soon as iCar launches, there will be plenty of reviews. As long as Apple keeps a tight

grip on quality, these reviews will be some of Apple's best ads. Beyond that, Apple's brand is

similar to luxury (though not identical). Therefore, they don't need to spend money on celebrity

endorsements. Instead, some celebrities who support Apple products will take the initiative to

publicize that they own iCar to the public. Nevertheless, some basic channels of communication

are necessary. Such as digital, social and print channels to market the new iCar. It is important to

note that Apple should select these channels to avoid low-quality publicity that reduces the value

and connotation of Apple's brand.

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Figure 7: 1,869,845 people watched live presentation of the iPhone 2019 (Source:geektech,

n.d.)

7. Where will customers buy the product? How will it be delivered?

An effective distribution strategy helps a company to maximize profits and revenue. A

good distribution strategy ensures that a company’ product is accessible by the maximum

prospective customers at optimal distribution costs (MBA Skool, 2021). First, Apple will

continue to license iCar to expand its distribution network. Secondly, Apple can take the way of

online sales and make reservations on the official website. Finally, Apple's exclusive stores in

major cities could add a display area for automotive materials. Customers can get a taste of iCar

through introductions from automotive materials and salespeople and then test drive it by

appointment at an additional Apple warehouse. That has the advantage of avoiding space

constraints in existing stores and reducing storage costs.

8. Who are Apple's main competitors for iCar? How to build a competitive advantage?

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Apple's main competitor for iCar is Tesla. While there are a number of electric car brands

that have emerged and received good feedback, what really sets Apple and Tesla apart from other

electric car brands is that they don't just sell products; they sell dreams. In addition, although

Porsche, BMW, and other car brands have launched electric vehicle models, their brand

positioning is still luxury cars. When people think of these traditional brands, they still think of

elegant interiors or significant engines, but they don't immediately associate them with the future

of technology. What Apple needs to do is integrate the "tech sense" of the brand's first

impression into iCar and establish its uniqueness. In addition, technologies such as iCloud data

sharing will further expand iCar's product advantages, making its products more interactive and

user-friendly.

9. How will Apple ensure that all key roles in the production of iCar are filled with

qualified personnel? Will the company outsource or hire consultants?

Apple is venturing into a new market compared to its current specialization. Thus, the

company will need to hire new talents during the start of the iCar production (Goddard, 2020).

Apple will need to develop a good human resource plan that clearly outlines what should be done

depending on the needs of the project. Outsourcing companies or product consultants are

necessary because Apple has an advantage in operating system technology, but its design and

knowledge of electric vehicles themselves still need to be expanded. In addition, transportation

involves more security risks, and Apple must find a team of professional experts to provide more

advice for their products.

10. How to control the cost of iCar?

Because iCar is Apple's first electric vehicle, its rollout is somewhat experimental.

Therefore, iCar can refer to Ford's mass production strategy in addition to the necessary cost of

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technology development. The first iCar could come in just one color, dramatically reducing

material costs by purchasing the same materials in large quantities. In addition, Apple could keep

costs down by locating factories in places like China, where labor and leasing costs are lower, as

it has with other products.

Figure 8: Apple’s global supply chain (Source:spglobal, 2017)

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Systems

Apple is a brand that involves many different teams working together to create their

aspirational products. This means they have departments such as marketing, operations,

sales/business development, and financial accounting. Each of these departments work alongside

each other to create the most effective and high quality technology product possible.

They maintain a clean cut and aspirational brand image, and to do so they need a strong

marketing department. To assist the employees in this department, they would use an artificial

intelligence system that can be used to gather data such as identifying patterns in the market and

calculating large data sets. (Martin). This ensures Apple’s target market is thoroughly identified

and employees can determine exactly how to market to their customers. Without this type of data

system, Apple would not be able to easily access data on their customers and would have to

spend unnecessary time doing so. They can also utilize the system to give customers relevant

search results that contain Apple advertisements (Martin).

Apple is such a large company that they must remain as efficient as possible at all times.

This means they would need an operations team to stay on top of the day to day production and

organization within the company, and they might use a transaction processing system to do so. A

TPS records detailed day to day transactions of a business and helps keep track of everything

going on (Martin). This allows Apple to stay on top of new launches such as the Icar, and ensure

customer satisfaction.

For handling their sales and business development, Apple likely uses a customer

relationship management (CRM) system to manage consumer data. A CRM system is important

for organizing consumer data, tracking customer tasks or analyzing customer purchase patterns

(Sirk). This information can be used to develop sales strategies and increase sales. An example

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of a CRM that Apple might use is Salesforce, who they partnered with to develop CRM systems

on iOS (Apple Newsroom). Additionally, CRM systems can accumulate information useful to

marketing departments as well. These information systems are crucial for developing a strong

connection with consumers.

Apple will need assistance when it comes to financial records, especially due to the fact

that it is such a large corporation with global reach. Having an enterprise resource planning

(ERP) system is the key to success due to the fact that it allows you to integrate individual

business functions into a series of modules, so that a single transaction occurs seamlessly within

a single information system rather than in several separate systems. Apple should also have a

SAP system, which is an acronym for systems, applications, and products in data processing.

SAP is known as the “industry standard” resource planning software for larger, luxury

corporations. Apple can use this software to provide wider visibility on inventory, sales,

distribution, and materials management. Lastly, having a system such as Quickbooks is highly

beneficial for keeping record of business expenses and invoices. This will allow for the company

to have a detailed financial record of transactions and expenses, making it easier for the financial

department to develop quarterly expense reports and etc.

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Conclusion

EVs are becoming popular as people become conscious about their carbon footprint, and

shift their focus towards sustainability. Apple has the resources to invest in this sector and create

a competitive vehicle that offers consumers the loved, user-friendly interface of Apple

software/design and the performance of a luxury vehicle. The brand’s loyal customers are always

willing to try the latest product, no matter the cost. They will stand in line for hours just to be the

first to try the latest technology. This is why we believe Apple is the right technology company

to introduce an electric vehicle. With their strong competitive advantage and vast amount of

resources, Apple has the potential to overcome Tesla by incorporating iOS technology directly

into the iCar’s design. Having iPhone integration will be a key selling point to diehard fans. As

technology’s function becomes ingrained in society, our mobile devices will be crucial to our

daily lives. Additionally, the use of iCloud data integration and competitive pricing will help set

apart the iCar from it’s competitors such as Tesla and Porsche. The iCar is tech-driven with an

attention to detail, whilst meeting the consumers need for cutting-edge design. The elevated

interior and finishes in combination with Apple’s advanced technologies such as health analysis

and Siri Suggestions create a seamless design that is sure to exceed the standards of Apple’s

typical consumer. With both traditional and digital campaigns, Apple will extend their reach to

beyond the target customer making iCar accessible to the larger population. In classic Apple

fashion the marketing campaigns for the iCar will be simple, digestible, and let the innovation

speak for itself. With the emphasis of innovation at the forefront, Apple can create yet another

loyal community that is committed to sustainable luxury and ready to be a pioneer in the EV

automotive revolution that is soon to come.

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