Innovative services

Authors: P. Heimenberg,

H. Mensonides,

Date: March 2007 Place: Delft

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Contents

1 Management Summary 4

2 Service concept 6 2.1 Concept of services 6 2.2 Context 6 2.3 The added value of the service 7 2.3.1 The value proposition 8 2.3.2 Distinctive characters of the mobile service 8 2.4 Service Quality 9 2.5 Service Acceptance 10 2.5.1 The service process 10 2.6 Pricing 12 2.6.1 Pricing model 12

3 Organizational architecture 13 3.1 Internal factors ( Business Model) 13 3.1.1 Architecture of the service 13 3.1.2 Actor and Roles 14 3.1.3 Benefits for Actors 15 3.1.4 Revenue Model 16 3.2 External factors 18 3.2.1 Technology 18 3.2.2 Content 18 3.2.3 Marketing 18 3.2.4 Distribution 18 3.2.5 Financial sources 18 3.2.6 The competition of the butler service 19 3.2.7 Postioning Error! Bookmark not defined. 3.3 Constraints 20 3.3.1 Planning 20 3.3.2 Risks 20 3.4 Financial setting 21 3.4.1 The market of the butler service 21 3.4.2 Financial assumptions 22 3.4.3 Financial conclusions 23

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4 Technical architecture 25 4.1 Mobile networks infrastructure 25 4.1.1 Communication Protocols and Technologies 25 4.2 Applications 26 4.3 Handsets 26

5 References 27

Appendix A Detailed financial overview 28

Appendix B Usability study 32

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1 Management Summary

Butler service This service system is developed for the mobile event domain. The service system provides the people at an event with a luxury service. People with some extra money to spend, can enjoy the show and when one is in need of a drink a simple SMS to the butler service is all to get your drink. Without the hassle of payment or waiting inline. Giving the customer that feeling of a personalized service. Added value The butler service is positioned as a personal bar tending service, no waiting in line and you can order when ever you feel like it. You don’t miss a minute from the concert. Customer benefit and the solution to the problem of:

o Waiting inline o Missing part of the concert o Give up hard earned places o Spilling drinks when walking back to their places o The effort of getting the bartender attention and explain the order with

lots of noise on the background This results in:

o More time spend at the concert o Ordering at a moments notice o Effortless receiving your order

The company The Butler service company is owned by two owners who have enough technical, financial and entrepreneurial knowledge to assess risks and be able to run a sound and high quality service. Finance According to the financial statement as described in this plan, the company can break-even in the first year, with a sales volume of € 424 thousand a year. The net income is expected to be €110 thousand a year. The founders have provided an amount of €10.000,- for the startup of the company. To improve the return on sales (ROS) additional arrangements can and will be made with the drinks and beverages (content) providers.

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Technical The techniques used for the butler service are GPRS or UMTS. No special protocols or technologies are required to use this service. The application can be run on simple mobile phone as well on smart phones (XML or Java.). Simpler phone would have a text box SMS layout and smart phones a nice menu structure. This assures that the group that can make use of the butler service is not restricted by the technique (the phone the user has).

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2 Service concept

2.1 Concept of services Imagine you and your friends want a night out at a classy pop concert. Lots of people will go to see the star a crowd is expected. Not to be left without a ticket, the ticket service is called and the tickets are paid with your credit card number. Next the ticket service operator asks you if you want to make use of the butler service during this event. He explains that there will be no waiting in line and the costs will be charged to the credit card you just used. This is what you always were waiting for. You would like to spend a little more just to get your drinks when you want it without waiting inline. So you say yes to the Butler service, you state your mobile phone number and tickets are being sent to you with the usage instruction of the butler service. At the night of the event you enter the stadium and see the billboards and poster with advertisements of the butler service and the SMS number to dial. You dial the number and you are connected to the service. Time passes. The concert is great and you and your friends are enjoying the show, realizing you all get thirsty. You think about the large waiting lines before the bars and realize the butler service. You order your drinks and get a confirmation of the order. Still enjoying the show a waiter comes up to you and delivers you your drinks and beverages. Now you’re enjoying your drink and never mist a minute of the show. You and your friends enjoying the time of their LIVE. 2.2 Context An event is taking place, this could be a mobile event, a large event at which a large crowd is expected. This means large waiting lines to get a drink. Thick rows of people in front of the bars, sweating, pushing and shouting to the bartender trying to order their drinks while the music is playing loud. When finally served it is not easy to get the drinks back to your seats as filled up as one would like.

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2.3 The added value of the service The butler service is positioned as a personal bar tending service, no waiting in line and you can order when ever you feel like it. You don’t miss a minute from the concert. Customer benefit and the solution to the problem of:

o Waiting inline o Missing part of the concert o Give up hard earned places o Spilling drinks when walking back to their places o The effort of getting the bartender attention and explain the order with

lots of noise on the background This results in:

o More time spend at the concert o Ordering at a moments notice o Effortless receiving your order

The alternative is the competition of the butler service: There are two main competitive services at any event:

1. The bar service, where the customer has to wait in line to order drinks or food 2. The people who sell drinks by walking true the crowd, they are sometimes employed by

the caterer of the event and sometimes there entrepreneurs them self’s Most of the times the events are closed to entrepreneurs and licenses are given to one supplier which is contracted at an event, this supplier could even be sponsoring the event. Negative aspects of the bar service are the long lines of people waiting to order. In the meantime the concert is going on. The people waiting in line are missing part of the show. These are valuable minutes, a concert last only about two to three hours. And waiting in line for 15 minutes is normal. Negative aspect of the people running through the crowd selling drinks is that the variety of drinks is limited. And they are never around when you want to order.

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2.3.1 The value proposition Saving time – The customers do not need to wait in line and thus saving precious time, which can be spend at the Show or with their friends. Easier – It is easier, more convenient. The effort of ordering a drink at a Dutch event should not be taken lightly. People cutting in line, pushing and shouting, -- no fun to be at. Improved quality – The order is direct and accurate. An order confirmation is send back to the customer so it can be verified. No miss understanding possible which is likely to happen at the bar were everybody is shouting to the waiter. Working more quickly – No walking over to the bar and no waiting in line, no verbal explanation of your needs and wants. Freedom the service offers – You can order anytime you like without calculating the time it would cost you otherwise and plan it to the highlights of the show. 2.3.2 Distinctive characters of the mobile service Accessibility - Your mobile phone is easily reached, so an order is a few taps away. Reachability – Using your phone you immediately are connected to the server Localization - This depends on the technology and event location used. Personalization – The variety of drinks to order from this service is larger that would be possible at the bar. (E.g. the customer could order wine, martini, a cocktail or a beer and soda). So in this case your order is your personalization.

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2.4 Service Quality Quality is defined meeting the customer’s expectations Accurately – Information is gives about the Butler service, either at the cash register or via your mail by the ticket service. The service works exactly as described, and the description is clear and understandable. Responsiveness – The service is fast in response because the server is handling of the requests. The time it takes for delivery is written down in the Butler service information folder. Security/Trust No exchange of money, no exchange of credit card numbers, and no personal information is exchanged between the waiter and the customer. The payments are based on normal controlled secure currency handling done either at the ticket box or at the ticket service. Support – The information given about the service is a start. An information number can handle all you questions. (This would be a call-centre service and of course this in not free of charge…) Reliability – From the request of the service application to the order received. Every

response from the system is as described with high reliability. Every order send result in the exact order delivered.

The service does not deliver Quick – The order can be given at any instance, but the delivery will be dependent

on the amount of staff available and the number of orders received. This means the service could be slower compared to waiting inline and ordering at the bar or buying soda from the resellers who walk through the crowd selling soda right next to you.

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2.5 Service Acceptance It is expected that the service will be highly accepted. On one hand because of the value added by the service, described in chapter 2.2 and on the other hand because the usability. It is based on SMS services which are well incorporated within the society and especially in the proposed market segment. Therefore it is easy to learn and because of the menu based application few errors and high satisfaction. In chapter 4.2 some graphics of the menu structure are displayed. 2.5.1 The service process In figure 1 the processes related to the service system are displayed. All starts with the request from the user for the Butler service. The server answers with the sending of the Butler menu order application. At bullet 3 the users uses the application and sends in the order. From the Server the confirmation is send to the customer. The server handles all actions with ticket service and the bank. If the chosen way of payment doesn’t comply with information of the ticket service additional information is asked from the customer. If the bank can’t validate the way of payment no order is send and the session is cancelled, the customer is provided feedback. If the bank validation is OK, the order is send to the caterer and the waiter brings the order over to the customer.

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Figure 1: Butler service process

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2.6 Pricing 2.6.1 Pricing model The pricing model used in the butler service is the Brokerage model [Rappa: see references chapter 5]. In this model buyers and sellers are brought together and transactions are facilitated. This is seen as a business-to-consumer (B2C) market. There are several ways one can make some margin with this idea:

1. The prices of drinks are normal or slightly higher, there is a maximum amount of drinks one can order at once, and the earnings are done by charging €1,50 for every SMS send or received. Calculating for an average scenario this adds up to €9, -- for the first order and €6, -- for the following.

2. The prices of the drinks could be €2,-- more expensive, here we expect the customer will order multiple drinks for the party he is with or orders are on hold until enough order are coming from that area or on that route.

3. Also a combination of the two can be made. The SMS service will be easily accepted. SMS services are the most natural thinks one can do with their phone nowadays. Spending money using SMS is seamless. A lot of money is being made selling ring-tones, voting for persons on TV etc. And all these SMSs send and received cost between € 1,50 and € 3,--. And voting during TV broadcasts is booming business some people vote multiple times just to help there favorite, spending a large number of euros.

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3 Organizational architecture

In this chapter the organizational architecture (value network) of the service is described. This is divided in two parts: Internal and external factors. Internal factors handle about the players in this service system, their roles and how to add value to this service. The external factors handle about the other needs necessary to support the internal factors. 3.1 Internal factors ( Business Model) 3.1.1 Architecture of the service In figure 2 the actors in the Butler service are shown. All actors need to work close together to make this service work. The main players that can be recognized to be important to service provider (we) are: The customer, The network provider and the Content provider. The other partners are certainly necessary but have no direct relation to the service provider.

Figure 2: Value network of the Butler service

customer

Application provider

Service provider

Network provider

Billing provider

Content provider (drinks/snacks)

Content Billing

Bank

Interpay

cash

User location provider

Ticket Service

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3.1.2 Actor and Roles Every actor has an own roll in the service system. Here, a description of the roles per actor is given: Customer: The customer is the consumer of the service. He/She gets what he/she pays for. To get this service the user has to do two things: 1. agreeing with the use of this service at the moment he is being asked for it at the ticket office. 2. Ordering his drinks and food with the SMS butler service. Ticket Service: This actor takes the reservation for the event and saves all the necessary information of the customer. When the customer makes a reservation for the event, he is being asked if he want to make use of the butler service. If this is the case, the way of payment and his mobile phone number is asked. This information: name - bank/credit card number - mobile number, makes the billing for the ordered content (beer) possible. This data is forwarded to the content provider for the billing. Application provider/Service provider: This is our company. We provide the contact between the necessary partners. To the customer we provide the order application, to the network provider the use of there network by an SMS service and to the content provider a new way of supplying their content and payment of this content. Content provider: The content provider provides the physical content in the form of food and drinks. The content provider also provides the billing of the content by using the ordering information from the Service provider and the payment information (name - bank/credit card number - mobile number) from the ticket service. User location provider: The user location provider is an optional service that provides the location of the customer in case (for example) GPS or UMTS is used for user positioning. If chair numbers are used for ordering this service is not necessary. Network provider: The network provider provides the access to the GSM networks and services necessary for making the use of the “Butler SMS application” possible. The network provider handles also the billing for the use of the network.

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3.1.3 Benefits for Actors Customer: Benefits from the service by not having to move for getting drinks or snacks. (see also paragraph 2.2.1 “value proposition”. Ticket Service: The benefits for the ticket service can be found in being related to the butler service. This means that they are (virtually) able to offer an extra service. Application provider/Service provider: This new service provider benefits from offering the service. An other benefit can be the publicity, when this service becomes a success other/add-on services can be provided on the same service platform (e.g. supplying event-gadgets). This promotion can be done in cooperation with the content provider (e.g. order now your XYZ-beer, SMS “1 Beer “ to 1234). Content provider: The content provider benefits from the fact that is being associated with good service. User location provider :The only benefit for the location provider is the larger amount of use of their service Network provider: The only benefit for the network provider is the use of their network for a SMS service in a high price category.

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3.1.4 Revenue Model For the revenue model the players are shown in figure 3. This time flows of money are indicated by red arrows. Note the switch of the network and the service provider. Underneath the flow of money per partner is indicated. There are three mean streams of money that can be identified. These three revenue flows are all initiated by the customer:

1. The reservation/administration costs of the tickets (including the butler service) 2. The payment of the use of the network (SMS). 3. The payment of the content

The first stream of money is are the cost that is charged by the ticket service for the ticket reservation. When the user is going to make use of the butler service this amount will be a little bit higher and provides the income for the ticket service for providing this option. The second stream of money comes from the fact that the user makes use of a telecommunications network. In practice the user uses the butler service and a part from the cost of using the butler service will be paid to the Network provider. The third stream of money comes from the extra charge that is incurred to the content (drinks/beverages). This extra charge is for the biggest part used by the content provider for paying the butlers and a small part will be paid to the Service provider.

Figure 3: Revenue model

customer

Application provider

Service provider

Network provider

Billing provider

Content provider (drinks/snacks)

Content Billing

Bank

Interpay

cash

User location provider

Ticket Service

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Ticket Service: This service can get revenue from charging the reservation but a second possibility is asking an amount of money for every customer that makes use of the butler service Network provider: The customer is charged for using the network (sending SMS). This will not be the normal SMS price but there will be an extra charge for the butler service. The part for using the network is paid to the network provider. The other part will go to the service provider. Content provider: The content provider offers the foods and drinks for the special butler service price. This price includes payment for the butler, the price of the product itself and a service provider fee for offering this service. Application provider/Service provider: The service provider earns in two ways: 1. From the extra charge per SMS and from the fee that is charged, on the drinks and food price, for the butler service itself. User location provider: The user location provider gets a payment for every user it locates, this payment is done by the service provider.

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3.2 External factors 3.2.1 Technology The butler service makes use of standard SMS technology., this means that the risks for this part are relatively low. The new part will be an ordering database for keeping track of orderings and payment. This is of course a new development that has to be done in cooperation with the network provider. 3.2.2 Content The content is necessary for the service to perform. But the type of content is depending on the type of event and the content provider. In this case the content is assumed to be drinks and little snacks. 3.2.3 Marketing The marketing of the butler service can be done in three ways:

• By the Ticket service • By doing the promotion on our own • By the content provider

Promotion can be done by posters and electronic wallpapers at the event and flyers that come with the ticket. But this type of promotion is fairly expensive. A way to overcome this problem is making a deal with the content provider in sponsoring this service or by promotion this service on their billboards at the event. 3.2.4 Distribution The ticket service does the actual distribution, it offers the use of the service to the customer as an extra convenience at the event when the tickets are ordered (by internet or phone). 3.2.5 Financial sources For the service itself the customer is the main source of finance. But the development of the application (the ordering database) has to be financed in an other way. This will be done by investments out of personal savings. Only in times that the business is declining a loan will be taken from a bank.

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3.2.6 The competition of the butler service There are two main competitive services at any event;

1. The bar service, where the customer has to wait in line to order drinks or food 2. The people who sell drinks by walking true the crowd, they are sometimes employed by

the caterer of the event and sometimes there entrepreneurs them self’s Most of the times the events are closed to entrepreneurs and licenses are given to one supplier which is contracted at an event, this supplier could even be sponsoring the event. Negative aspects of the bar service are the long lines of people waiting to order. In the meantime the concert is going on. The people waiting in line are missing part of the show. These are valuable minutes, a concert last only about two to three hours. And waiting in line for 15 minutes is normal. Negative aspect of the people running through the crowd selling drinks is that the variety of drinks is limited. And they are never around when you want to order. 3.2.7 Positioning The butler service is positioned as a personal service, no waiting in line and you can order when ever you feel like it. You don’t miss a minute from the concert. And your order is brought to you.

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3.3 Constraints 3.3.1 Planning The butler service has to run through the whole year. Because the months January, August and December are bad months for events (holidays, financials and (new year)celebrations), it is not expected to have income in these months. When starting the service the first possible month will be February. Further it is expected that it would be possible to have at least one event a month where this service will perform. 3.3.2 Risks Risks can be found in the fact that not enough people will use the service, for example because of the price. An other risk could be that the content provider eventually starts its own butler service when the service seems to be an success. This is why working close together with the content provider will be very important.

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3.4 Financial setting 3.4.1 The market of the butler service The market of the butler service The target market for the butler service is young people in their thirties, having a good job and enjoy live. They coming to large events to have a good time and relax from their busy lives. To set it into a list: People;

Age 25 – 35 Having a well paid job Enjoying live and luxury Visiting large public events/ concerts

Population of The Netherlands is 16.3 million Average life expectancy in The Netherlands is 77 Estimate size of people between age of 25 and 35 is (35-25)/77= 13% Income, of people earning €30.000, -- or more are, 2.6million Income, of households earning €30.000, -- or more are, 800.000 Of these households one in five is single person household and the rest is a multiperson household The number of people in these households without children sums up to 1.4 million people Of these 13 % is within age our segment 182.000 people Of these people 17% will go to concerts, 3% will go every month and 14% will go more often then three times a year, but not every month. This results in a total estimated size of 31.000 people for our target segment. The number of visits to concerts in a year is 244.500 times Number of concerts a year on average is 70 ( source: ticket unlimited) Estimated number of concerts not noted by Ticket Unlimited 30 a year Number of visitors per concert on our target segment is 2400 people Estimated number of drinks per person per concert is 3 For our target group this adds up to 7200 drinks per concert

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3.4.2 Financial assumptions In appendix A the financial overview for the first two years are given. For calculating these numbers the following assumptions have been done: Location provider In the first place the service will be started on the basis of chair or box numbers. This means that the “user location provider” is not necessary at these events and is not taken into account in the calculations. Software/Application It is assumed that the software is already finished before the first month. The total amount of cost for the software is estimated on €10.000,-. The software builder will be paid in six terms: €5.000,- in first month of the first event and €1.000,- in the 5 months thereafter (for assuring bug fixing). Salary The two owners of the company will draw salary from the company. The amount is described in the paragraph 3.4.3. The butler service server The butler service server will be leased for €400,- per month. Internet connection Rental of the internet connection on an event: €500,- per event. Promotion The assumption for the promotion is that the butler service company take care for the promotion. For this promotion, folders will be provided with the event ticket and posters (also in electronic form) will be shown at the event. The estimated costs are for the folders are €2.500/event and for the posters € 10.000/event. Total promotion outflow is thus: €12.500/event. Operational costs In the calculations an amount of unforeseen costs is taken into account. This cost is estimated on €1.000,- per month.

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Amount of events Amount of 9 events per year is assumed Amount of ordering sessions As can be seen from paragraph 3.4.1 the target group per event is 2400 people. These people will order on average 3 drinks per event. This means the total amount of drinks sold by the butler service will be 7200. These drinks will be ordered in three sessions: at the start, at the 1st break and at the 2nd break. This means that the total amount of ordering sessions is: 7200/3 = 2400. Income generated by the ordering service The cost per (SMS) message send or received is take to be: €1,50 The first time the user accesses the service 6 messages will be exchanged. The sessions thereafter only 4 messages will be exchanged because the user is already known by the system. This means that the cost of using the service will be: First session €9,- and the next sessions €6,- On average this will generate €21,- per user (14 messages). Of every SMS 10% goes to the network provider: €0,15 and €1,35 to the service provider. This means per session: €0,15 * 14 = 2,10 to the network provider and €1,35 * 14 = € 18,90 to the service provider. For a total event this would be €2,10 * 2400 = €5040,- for the network provider and €18,90 * 2400 = €45.360,- for the service provider. Income generated by the content provider Price per drink/snack is €2,- higher than normal (€0,25 for the service provider, €1,75 for the butler) Per event: 7200*€0.25 = €1800,- for the service provider; €7200*€1.75 = €12.600,- for butler payments. 3.4.3 Financial conclusions From the calculations show in appendix A it can be seen that the service can be profitable. But there are some remarks to make on these calculations. First the item “retained earnings” is relatively small this means that almost all generated profit is used up in the same year. Concluding:

• The company is financial situated around the break-even point. • The critical mass is around 9 events a year.

The main numbers are shown in table 1. It can be seen that the two statements as mentioned before can also be deducted from these numbers. The Return on sales is around 26% while for a starting company 30-50% is certainly needed to be profitable.

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Table 1:Profit and loss statement year 1 and 2 Profit/Loss Statement

Year 1 % of sales Year 2 % of sales Sales € 424,440 € 424,440 Purchase € 192,200 45.3% € 181,800 42.8% Operational cost € 11,000 2.6% € 12,000 2.8% Salaries € 33,000 7.8% € 48,000 11.8% Operating Income € 188,240 € 182,640 Corporate Tax (40%) € 75,296 17.7% € 73,056 17.2% NET INCOME € 112,944 26.6% € 109,584 25.8% Return on Sales (ROS) 26.6% 25.8%

Another important number is the salary that both the owners draw from the company. In these calculations it is assumed that the first year €3000,- (€1500,- per person) is drawn and the second year €4000,- (€2000,- per person). Of course this is not enough to live from. This can mean two things:

1. The owners have to have a second source of income 2. The sales have to go up 3. Some other measures have to be taken to reduce the cost

The first point is an option but not the most favorable because of the workload. The second option (increasing the sales), depends on the ability to do more events and this is a big risk because nobody give the assurance that this will work. The third option is probably the most important source of improvement. The major cost for this service comes mainly from the purchases. The biggest part of the purchases if contained in the promotion costs. To reduce these cost two things can be done:

1. A deal can be made with the content provider for sponsoring or combining the promotion with his own campaign.

2. Using the posters for more than one event (for example: if these posters are used at two events there will be a reduction of €5000,- per event for the promotion costs on yearly basis this is 9 * €5000,- = €45.000,- a year).

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4 Technical architecture

4.1 Mobile networks infrastructure

Figure 4:Mobile network infrastructure of the butler service

As all services are Internet based the infrastructure is quite simple. The user connects to the Butler server via the Internet. Information exchange is done via the same way. Additional information needed are retrieved from the Ticket service or bank via the Internet. And eventually the order is send via the Internet to the catering service server of that event. The butler is displayed in the picture to depict the last meter link. 4.1.1 Communication Protocols and Technologies The technology use to hook up to the internet is GPRS or UMTS. No special protocols or technologies are required to use this service. The location of the customer depends on the events location. At the start of the service the chair numbers of the stadium will be used or a box number.

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In the more distant future other possibilities arise as for instants GPS coordinates from GPS enabled phones, Bluetooth and RFID location tags for Bluetooth enabled phones. For an event which is held in the country on farmland, the RFID tags can work. Almost all phones are equipped with Bluetooth and RFID tags are easy to place. With a Bluetooth range of 10 meters tags don’t need to be placed every square inch. The phone can pick up the location coming from the RFID tags and sends the tag position to the server. Via cross measurement the location accuracy could be less then 2 meters. This is done by registering the power received from the available tags. It is recognized that this solution might not be available on the market yet. In that case the simplest solution is to provide the event field with area numbers. This area number then needs to be entered when ordering. 4.2 Applications The application used can be XML or Java. The application can be run on simple mobile phone as well on smart phones. Here the sample layout of the menu service is displayed as would be shown on a smart phone. Simpler phone would have a more text box SMS layout.

4.3 Handsets As been stated in the previous sector the handsets used can be types of PDA, Smart phones but also the simpler phone. As long as the mobile phone has the ability to hook up to the Internet.

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5 References

• SPM 4140, Service systems Engineering, by E. van der Kar, A. Verbraeck, 2006, Delft University

• Rappa, http://digitalenterprise.org/models/models.html • Finance and accounting for nonfinancial managers – William G. Droms – Fifth edition

2003 • STARTING UP – McKinsey & Company, Inc 1998

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Appendix A Detailed financial overview

Opening Balance year 1 Inventory (server) € 10.000 Initial (Paid) capital € 10.000 € 10.000 € 10.000

Month Outgoing Incoming Promotion Networkprov Internet Software Server SMS service Content February 5000 400 March 12500 7200 500 1000 400 45,360 1800 April 12500 7200 500 1000 400 45,360 1800 May 12500 7200 500 1000 400 45,360 1800 June 12500 7200 500 1000 400 45,360 1800 July 12500 7200 500 1000 400 45,360 1800 August 12500 7200 500 400 45,360 1800 September 400 October 12500 7200 500 400 45,360 1800 November 12500 7200 500 400 45,360 1800 December 12500 7200 500 400 45,360 1800

112500 64800 4500 10000 4400 408,240 16200

Cash-flow Plan Purchases Server lease Cash Sales

February € 5,000 € 400 € - March € 21,200 € 400 € 47,160 April € 21,200 € 400 € 47,160 May € 21,200 € 400 € 47,160 June € 21,200 € 400 € 47,160 July € 21,200 € 400 € 47,160 August € 20,200 € 400 € 47,160 September € 400 € 400 October € 20,200 € 400 € 47,160 November € 20,200 € 400 € 47,160 December € 20,200 € 400 € 47,160 € 192,200 € 4,400 € 424,440

Income Statement Year 1 Sales € 424,440 Purchase € 192,200 Gross Profit € 232,240 Depreciation

Inventory € - Operational cost € 11,000

Salaries € 33,000 € 44,000 Operating Income € 188,240 Corporate Tax (40%) € 75,296 NET INCOME € 112,944

Balance Sheet, end year 1=begin year 2 Inventory € - Paid capital € 10,000 Cash € 132,784 Tax liability € 80,688 Amounts payable € 40,400 Retained Earnings € 1,696 € 132,784 € 132,784 Tax liability Corporation Tax 40% (year 1) € 75,296 VAT (December year 1) € 5,392 € 80,688 Amounts payable Purchases November € 20,200 Purchases December € 20,200 € 40,400

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February March April May June July August September October November December Total Cash-in-flow Cash Sales 0 47,160 47,160 47,160 47,160 47,160 47,160 0 47,160 47,160 47,160 424,440 0 47,160 47,160 47,160 47,160 47,160 47,160 0 47,160 47,160 47,160 424,440 Cash-out-flow Purchases 5,000 21,200 21,200 21,200 21,200 21,200 20,200 400 20,200 20,200 20,200 166,000 Salaries 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 33,000 Operational cost 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 11,000 Server Lease 400 400 400 400 400 400 400 400 400 400 400 4,400 VAT -1,000 5,192 5,192 5,192 5,192 5,192 5,392 -80 5,392 5,392 41,056 Beginning Balance -10,000 -19,400 3,160 19,528 35,896 52,264 68,632 86,000 75,808 98,448 115,616 -10,000 Ending Balance -19,400 3,160 19,528 35,896 52,264 68,632 86,000 75,808 98,448 115,616 132,784 132,784 Specification of the VAT (Value Added Tax) Sales February March April May June July August September October November December Total Cash Sales 0 47,160 47,160 47,160 47,160 47,160 47,160 0 47,160 47,160 47,160 424,440 Purchases 5,000 21,200 21,200 21,200 21,200 21,200 20,200 400 20,200 20,200 20,200 192,200 Difference -5,000 25,960 25,960 25,960 25,960 25,960 26,960 -400 26,960 26,960 26,960 232,240 Tax liability -1,000 5,192 5,192 5,192 5,192 5,192 5,392 -80 5,392 5,392 5,392 46,448 (VAT 20%)

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Month Outgoing Incoming Promotion Networkprov Internet conn Server SMS service Content January 400 February 400 March 12500 7200 500 400 45,360 1800 April 12500 7200 500 400 45,360 1800 May 12500 7200 500 400 45,360 1800 June 12500 7200 500 400 45,360 1800 July 12500 7200 500 400 45,360 1800 August 12500 7200 500 400 September 400 45,360 1800 October 12500 7200 500 400 45,360 1800 November 12500 7200 500 400 45,360 1800 December 12500 7200 500 400 45,360 1800

112500 64800 4500 4800 408,240 16200

Cash-flow Plan

Purchases Server Cash Sales January € - € 400 € - February € - € 400 € - March € 20,200 € 400 € 47,160 April € 20,200 € 400 € 47,160 May € 20,200 € 400 € 47,160 June € 20,200 € 400 € 47,160 July € 20,200 € 400 € 47,160 August € 20,200 € 400 € 47,160 September € - € 400 October € 20,200 € 400 € 47,160 November € 20,200 € 400 € 47,160 December € 20,200 € 400 € 47,160 € 181,800 € 4,400 € 424,440

Income Statement Year 2 Sales € 424,440 Purchase € 181,800 Gross Profit € 242,640 Depreciation

Inventory € - Operational cost € 12,000

Salaries € 48,000 € 60,000 Operating Income € 182,640 Corporate Tax (40%) € 73,056 NET INCOME € 109,584

Balance Sheet, end year 2=begin year 3 Inventory € - Paid capital € 10,000 Cash € 136,400 Tax liability € 78,448 Amounts payable € 40,400 Retained Earnings € 7,552 € 136,400 € 136,400 Tax liability Corporation Tax 40% (year 2) € 73,056 VAT (December year 2) € 5,392 € 78,448 Amounts payable Purchases November € 20,200 Purchases December € 20,200 € 40,400

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January February March April May June July August September October November December Total Cash-in-flow Cash Sales 0 0 47,160 47,160 47,160 47,160 47,160 47,160 0 47,160 47,160 47,160 424,440 0 0 47,160 47,160 47,160 47,160 47,160 47,160 0 47,160 47,160 47,160 424,440 Cash-out-flow Purchases 0 0 20,200 20,200 20,200 20,200 20,200 20,200 0 20,200 20,200 20,200 181,800 Salaries 4000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 48,000 Operational cost 1000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000 Server Lease 400 400 400 400 400 400 400 400 400 400 400 400 4,800 VAT 0 0 5,392 5,392 5,392 5,392 5,392 5,392 0 5,392 5,392 43,136 Beginning Balance 1,696 -3,704 -9,104 12,456 28,624 44,792 60,960 77,128 93,296 82,504 104,064 120,232 1,696 Ending Balance -3,704 -9,104 12,456 28,624 44,792 60,960 77,128 93,296 82,504 104,064 120,232 136,400 136,400 Specification of the VAT (Value Added Tax) Sales January February March April May June July August September October November December Total Cash Sales 0 0 47,160 47,160 47,160 47,160 47,160 47,160 0 47,160 47,160 47,160 424,440 Purchases 0 0 20,200 20,200 20,200 20,200 20,200 20,200 0 20,200 20,200 20,200 181,800 Difference 0 0 26,960 26,960 26,960 26,960 26,960 26,960 0 26,960 26,960 26,960 242,640 Tax liability 0 0 5,392 5,392 5,392 5,392 5,392 5,392 0 5,392 5,392 5,392 48,528 (VAT 20%)

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Appendix B Usability study

Underneath the ordering sequence of an ordering service on the internet is shown. All these services have the same structure and way of working. This ordering system is comparable with the butler service ordering system. As can be seen in comparison to chapter 4.2. The system works fine and is easy to understand. You only have to click the items you want and the appear on the ordering list on the right side of the screen. First you give your location (figure 1), than you select the desired restaurant (figure 2), select the food you desire (figure 3 and 4), enter your ordering information and press “send”. You go further with what you where busy with and after a while your food will be brought to you. Sometimes payment isn’t necessary because you have already paid with your credit card. If this is not the case you pay cash on delivery.

Figure 1: Enter location Figure 2: Enter type of food

Figure 3: Select menus and items desired Figure 5: Enter ordering information

Figure 4: Make a detailed choice