Project Profile: E$-$commerce Mobile App Development

Due no later than $11$:$00$ PM EST Sunday of Unit $7$ or as directed by the professor

Value: $5\%$ of final grade

Project Description:

The project involves developing a mobile app for a mid$-$sized retail company aiming to expand its online presence. The app will feature an easy$-$to$-$use interface, secure payment gateways, and personalized shopping experiences for users. The goal is to increase sales, improve customer engagement, and enhance the overall shopping experience.

Objectives

Increase sales through a user$-$friendly mobile platform.

Improve customer satisfaction and retention.

Gather data on shopping preferences to enhance marketing strategies.

Estimated Costs:

Initial market research and feasibility studies: $$50,000$

App design and user interface creation: $$150,000$

Back$-$end development and integration with existing systems: $$200,000$

Security features and payment gateway integration: $$100,000$

Testing and quality assurance: $$50,000$

Marketing and launch activities: $$75,000$

Post$-$launch support and updates $($first year$)$: $$75,000$

Expected Revenues:

Projected increase in sales: $20\%$ growth in online revenue within the first year, estimated at $$500,000$

In$-$app purchases and advertisements: $$30,000$ annually

Duration:

Planning and research: $2$ months

Development phase: $6$ months

Testing and deployment: $3$ months

Full operation and evaluation: Starting month $12$

Associated Risks:

Technical challenges in integrating with existing IT infrastructure.

Delays in development due to potential software bugs.

Changes in consumer behavior leading to lower$-$than$-$expected app engagement.

Security vulnerabilities that could affect user data.

Economic Factors:

Potential eligibility for technology innovation grants.

Dependency on the economic stability of the retail sector, which influences consumer spending.

Competition from existing apps and changes in technology trends.

Funding Models Considered:

Venture Capital: Seeking funding from venture capitalists interested in technology and retail innovation.

Angel Investment: Targeting individual investors looking for new tech opportunities.

Bootstrapping: Utilizing internal company funds to finance development with the goal of minimizing external financial dependencies.

Strategic Goals Alignment:

Aligns with the company$$s strategic goal to increase digital sales channels.

Supports marketing objectives by enhancing customer data analytics capabilities.

Meets the innovation criteria to keep the company competitive in a fast$-$evolving retail market.

Activity Structure:

Discussion and Analysis:

Each group will discuss the assigned project and address the following key questions:

Feasibility Evaluation: Would you decide to undertake this project? Why or why not?

Funding Decision: If you decide to proceed with the project, which funding model would you choose and why?

Alternative Scenarios: If you decide against the project, could a different funding model make you reconsider? What would it be$?$

Please make reasonable assumptions about the discount rate and benefits lifetime; state your assumptions in your slide and discussions.

Slide Creation:

Groups will create $2-3$ slides to summarize their analysis and recommendations. Slides should include:

A brief overview of the project.

Reasons for their decision to undertake or reject the project.

Chosen funding model and rationale $($if proceeding with the project$).$

Discussion of alternative funding scenarios $($if initially rejecting the project$).$

Presentation:

Each group will present their slides in a $5-$minute presentation to the class, explaining their decision$-$making process and conclusions.

Submit the slides in Moodle dropbox.