The Process of Starting and Building Yappo with Effectuation Model
1. Great business does not happen in the first run of try. When Stuart Minnaar first launched the studentology.co.za his basic idea was the creation of a platform which was digital which was mainly for students to conduct interaction within each other. Within a time, span of two weeks the concept gathered around 13000 users as stated by Minnaar (Racz-Akacosi 2017). This merely can be very good for the company but on the other hand if the business could not make any profit through it, it would be of no profit. The creation of the user base was completed but what could have been the next step was the concern factor. Getting the concept of the business close to the UCT campus in order to provide the adverting of the said features was not an easy task in hand. It could not help in converting the sale due to the factor that guarantee was not applicable for the prospective of the students who would react from the advertisement and follow it through. The starting pivot point for Minnaar was the provision of the s6tudnet discount card. the implementation resulted in 125 stores coming on board. A card was provided to the student with a once time fee of R90. It provided easy cash and relatively quick process which kept the business going. On the other hand, the company knew that there was no longevity in the models view. The company mainly wanted to introduce a service for the student which would be directly beneficial for the company.
The main investing part in this scenario was that if the students could use their own phone in order to get things around the peripheral of the campus. There are mainly one and a half students the main target audience in this case scenario. Finally, an application was introduced which could report and allocate funds to different categories which were related to the application. Taking into account the bursary students, they had certain amount allocated for the entertainment, food, rent and so on. The application would directly help the students in order to manage their expenditure but on the other hand the application would not allow the students to spend ones it reaches the limit. This is how the Yappo mobile payment was born.
2. The basic idea of the Yappo mobile became a game changer for the organisation. the idea was very much strong, but the option regarding mobile payement was very much regulated. On the side of the bank they were working for a solution and did not want to partner with the prospective. The request to the bank in order to provide the collaboration was shut down. In order to get immersed into the industry Minnaar mainly recognized the benefits of getting the active in the tech and the space of the entrepreneurial. In the first few years the search of the solution continued by visiting different events which mainly included tech support, start up, payment solution and mobile. The company wanted to take consideration of what was happing in south Africa and abroad and make the connections (Morelix, Fairlie and Tareque 2017). The company won the regional in the year 2010 and the national in the year 2011, which came up with a reward of R250 000 in prize money. The whole money was forwarded towards the development of the application. Minnaar was not a tech guy. He was mainly involved in the vision scope of the project but the development was majorly outsourced. The game changer for the company was the selection as one of the 12 entrepreneurs at the silicon cape event which was called Pitch London. It majorly involved the invitation to pitch to a panel of angel’s investors in London. They all had their involvement and ties to South Africa and wanted to invest in local business bodies. This was a very good opportunity for the company both with the prospective of experience and change of pitch with regards to the real investors. It was all about the concept of the networking Minnaar about the importance of getting the company out there and finding as many associations, platform and the events as possible or as much as they can take into account. Taking the prospective of the investors the way the investors would be beneficial from the point of view of non-finance sector was not taken into consideration.
Factors of the Entrepreneurial Ecosystem Contributing to Yappo’s Success
3. Entrepreneurs should be very much careful not to be too enamoured with the concept of only idea. Instead they should take into consideration about the demand of the market and keep adjusting the market demand and the need of the people following the trending things. This concept should be implemented in a way that it should cover the revenue part also and maximizing the skills and the data and the growth of the potential at the point of the disposal. At this specific time span the company was very much concerned with the need of the students with it take the issue of monetizing the benefits. The company was trying to meet the cape union mart, as one of the investors gave them a chance. This merely resulted in the company being paired with international EY consultant for a tenure of six weeks. The formation of the business resulted in the realisation how the concepts of admin, legalities, finance and the list goes on. The company was a small start-up company but the involvement of the people vouching for the company, the concept of the start-up is removed from the organisation body language. The concept of networking power and the concept of the programming that mainly gave the direct access to the business people with the strong infrastructure of the business that was developed over the year time. The overview of the creation of the business network, attending the events and finding the appropriate mentor was developed (Curley and Slocum 2016).
4. The invention of the Yappo account be termed as a disruptive innovation or technology. This is due to the factor that it nearly tends to evaluate the need of the students in order to achieve their need. The trending section helps them to get the necessary item in an easy and very much functional manner. Taking into account the focus which the company tend to achieve by means of focusing on the overseas client would directly help them to achieve international standard. The main aspect which was the main concern of Minnaar was asking for the staggered finance. This is due to the factor that the finance part was not the concern but the managing concept of the what was going to happen once the investment of the money is done is the main factor. The company needed to be managed, coached and guided throughout the process. the company mainly involved three investors. The first investor wanted an update every three months. The second investor could be contacted if the need of cash is encountered and the third was mainly the mentor. The mentor played a very vital role in order to perform the managing part of the company (Morelix, Fairlie and Tareque 2017).
Taking all the above mentioned process the company was wanting to introduce a new trend by means of achieving help from the investor in the field of e wallet facility. Disruptive innovation can be termed as those innovations which tend to focus on a concept to steal time and rupture the innovation sector with pre estimated scope of time disposal. But taking the case study into consideration it mainly focused on an innovating part in order to reduce the time involved in the daily purchase aspect. The implementation had to be very much available for the students and should be recognized so that they can access the features.
Minnaar’s Exponential Psychological Attributes in the Yappo Case Study
5. The ethical issue that would have been faced by the Yappo in the start-up are:
- Lack of infrastructure: the lack of infrastructure concept is a very vital issue which is faced by most of the organisation. the infrastructure plays a crucial role in order to gain the main aim of the of the business. The role which is played by the different departments within an organisation should facilitate the concept of the business which can be achieved by means of a proper infrastructure (Sia, Soh and Weill 2016).
- Vendors and funders: an organisation always tend to research a market and after the process the development comes into action. This phase would require the involvement of fund which would be required for the concept of the research as well as the implementation of the process into a product or service. The investors direct involvement in the process would be directly be beneficial in order to move towards the goals of the organisation.
- Desire to achieve: every start company always take the initial step in order to achieve some pre estimated goal. The passion and the commitment area lies within the convert of the organisation. it takes a serious sacrifice of the factors of the money and the energy which should be taken up by the company in order to achieve the goal (Yamaguchi et al. 2016).
- Lack of interaction: All start-up company confronts the issue of not being recognized by the people. This matter plays a very vital role since it directly involves the sector where the people or the users are involved. This mainly involve the factor of the business as it directly involves the concept of the business (Ghobril et al. 2016).
6 .The wicked problem that would be encountered with referencing to Nussbaum’s capabilities are:
- Life: the problem which can be encountered is that it would directly involve in the life being more technology oriented. The dependent factor would be directly on the technology and the resources would be on the infrastructure which is created by the application.
- Affiliation: the affiliation factor is very much important as it involves the permission that involve in order to complete the business orientation and the permission to conduct the business. This permission has to be achieved in the first hand in order to conduct the business.
- Practical reason: the practical reason of the products which would be introduced in this section. But the main point of consideration is that the basic need of the people varies. This could directly involve in a section where the need of all the people would not be involved in a one go process.
A business model mainly consists of few factors which are mobilization, understand, design, implement and the manage. The business model which is proposed for the Yappo is the bricks and the clicks. This model is concerned with the ordering concept which is relating to customers ordering any product over the internet medium. This model has been typically implemented by traditional retailer and the supply chain and very much known for their physical presence in the infrastructure of the company (Martin 2016).
For consumers: The brick and the click model can benefit various member relating to the customer base. For example, different customers have different requirement which mainly require different shopping option. One group of people may wish to see the product before they actually purchase the product and want the convenience of the factor of buying any product at one go. On the other hand, there can be people who need to get another format which is according to their requirement. Any model should directly involve the factor that strengths the relation with the organisation and the user who gets the access. This model directly helps in creating a business standard in which the main factors which are taken into consideration are the factors of user, product, facility, service and the maintenance of the platform which provides the service.
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