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CHAPTER 2 MARKET DEMAND ANALYSIS
Section 2.1 Consumption Trend of Population
The demographic is shifting; the birth rate has been decreasing while the average age has been increasing. According to the Humanities and Social Sciences Newsletter Quarterly Volume 10, 2nd Quarter report in Taiwan, as stated in Figure 2.1 illustrates the average Taiwanese age has been increasing since 1906, and Figure 2.2 illustrated the Taiwanese age of 25 and under population has been decreasing since 1984.
Selecting Taiwan as the initial focus market due to one main characteristic, Japan has the oldest medium population around the world, their action against aging are a representation for many countries. Likewise, Taiwanese population structure follows on a very similar pattern, therefore each new innovation product and services developed will be assets for other aging countries.
Figure 2.1. Taiwanese Average age, from 1906 - 2006
Average Age
Year
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Source: Figure 2.1 and 2.2 Chen (2009)
Predictably, the average age will continue to rise due to continuous forecasts on low birth rates. In other word, the market will be shifted with more senior population;
this large amount of population will soon open up a new market that fosters the economy. Due to this demographic change, companies soon or later have to make alterations to their product and service strategy that will be able to cope with this shift.
Indeed, as human reached older age in a life cycle, they will be meeting many inevitable symptoms and mental and physical challenges that may terminate the older adult on motivating and trying on new things. Conspicuously, human have a symptoms such as trouble tendency in selecting information due to short-term memory or memory loss as aging (Hasher and Zacks, 1988) and Siedler and Stelmach (1996) states older adults often have decreased motor skills when compare with younger adults.
Further, since the proposed business closely relate to computer technology and Figure 2.2. Population with under age 25, 1984 - 2004
Year
Unite: Million People
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internet, the challenge for senior citizens may be the increase anxious while using computer, due to less likely of training opportunities and with little amount of experiences(Zoltan & Chapanis, 1982; Schwartz, 1988; Kerrie Laguna and Renee L.
Babcock, 1997). Therefore, computer challenge was problematic due to lack of training and experience; however that statement should not be issues due to current adults have longer computer experience and knowledge.
Although senior are bound with physical abilities, but not with social interactions, unless they have disabilities. Social interaction took place prior to internet existence, transformation from gathering at a community to social or to neighbors, moved on to telephone communication, to a virtual network on internet. Internet is a protégé tool that brings communication closer and easier with lower costs and time savings.
Internet communication opens many possibilities for business ideas, such as instant messaging, free online voice calling, blogging and a web base social networking;
where friends or unknown member connects or reconnect each other on a virtual platform forming a community. Therefore, by creating a new platform that opens up a communication channel can assist closer relationship for senior.
When seniors retires, their time becomes less valuable; time becomes not a constraint or taken away from work, some of the seniors maximize their time spending on using the internet, Cheng Chin-Yao (2011) wrote an article regarding the current post-retiree lifestyle on internet intention and usage summarizes as seniors may not realized the change of the internet affecting on their life daily, however the analysis from these interviewer uses the internet mainly for communication, social networking, that nurture a retiree’s life. These sample interviewers has a common characteristics of higher educational background and interactive proactively; sharing, blogging and communicating either to family or other online users and created fans
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group. Likewise, the younger generation of senior have similar or higher educational background, therefore it is inevitable that computer becomes part of the routine.
Obviously, these senior uses computer because of they are late adaptors; where individuals adopt because of influence form commonality users. Further, the internet content provider must have captured the senior’s internet user behavior so that design easier interfaces, however, in contradiction, many of these online complex activities continuously dominated and in favor of the younger generations. Of course, online developers should provide products and services to where the maximum audiences are, while neglecting this older adult group. Not to mention again that these older adult group soon will have more time and possibly wealth. Therefore, this proposal will be probing a new innovation travel social network platform that suitable the older adult group.
Section 2.2 Users’ Unsatisfied Needs
As Figure 2.1 and 2.2 illustrated, since 1906 the average Taiwanese age has been increasing, and the population of age under 25 has been decreasing since 1984. The situation threatens greatly to Taiwanese government as the result they consistently promoting packaging for increasing birth rates, according to Ministry of Interior 2010 reported; the Taiwanese birth rate reached all-time low 0.721%, approximately hundred and sixty thousand babies. If the problem persists, presumably in the next 10 years there will be a demographic leap, by that time, new services must create to fulfill, therefore, this is why the seniors has the huge market potential for business users.
Thus, the question should ask is what services should provide to this group of
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older adult after they retire. Unquestionably, there are many possibilities and opportunities; this proposal intending on focusing on an innovation social network platform for Taiwanese citizen. To begin with, it is necessary to identify the Taiwanese internet user behavior. The following data are collected from Taiwan Network Information Center (TWNIC), TWNIC is a non-profit organization that offers complete national network information and which will be scrutinized and analyzed and the result data lays the foundation for this business proposal.
To make sure the data is applicable, a 4 year consisted behavioral data period from TWNIC are collected between the years of 2004 to 2008. The research method TWNIC inquires their data is by adopting Computer Assisted Telephone Interviewing (CATI) system proceeds on phone interviews, and their primary exploration includes network behavior for both personal and family’s users, the analysis will be discussed.
Indeed, the market is driven by number of population, in addition to determining Taiwanese user’s behavior, it is also necessary to determine if there is a market potential. To illustrate this, Figure 2.3 shows the online user population versus total population in 2009. The result data is calculated from the appraised internet user percentage on TWNIC, and multiply the current total population in Taiwan where is found in Department of Household Registration Affairs, MOI.
Figure 2.3 has contrast out the decreasing of internet population as aging, according to the Department of Household Registration Affairs, MOI the total population in 2009 in age group of 45 – 54 is approximately 3.66 million people and compared with the internet population is approximately 2.16 million people. Which meant there are nearly about 40 percent of this age population in this age group that are not connected, and yet 60 percent are. In addition, 45-54 internet users shares
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approximately 17.02% of entire internet population. See Appendix I for full numeric detail.
Figure2.3 Total Population vs. Internet Population In Taiwan 2009
Source: Taiwan Network Information Center (TWNIC) and Ministry of Interior (MOI) 2009
Section 2.3 Demand Analysis of Objective Market
Given the internet demographic in Taiwan, the other measurement is the internet behavior and usage of these older adults. . The behavior data are collected under the section are the Internet Links user’s Click, the interpretation of the click action defines the behaviors of what interest to them while browsing on a webpage. This section organizes in the following categories includes; portal sites, search engines, government organization, news media, financial & banking, culture art, school research, educational learning, medical & healthcare, parenting, individual websites, gaming sites, adult entertainment, e-shopping sites, entertainment, leisure and travel, job search, net chatting, internet radio, beauty and health, fortuneteller, information
40%
60%
17%
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technology, software downloads, social groups, uncertain, and other. Until 2008, online album and personnel blog were added on to the list. The demographic are divided in age of 16 to 25, 21 to 25, 26 to 35, 36 to 45 and 55 and above. The result data are the overall average of each behavior, this illustrate the consistency of user’s on each behavior as aging.
The analyzed result illustrates the most salient results on Figure 2.5. The Figure 2.5 illustrates categories that have sign of decreasing as aging; they are gaming sites, net chatting, individual websites and blogs. The possible interpretation of this declination can be that these available contents are not suitable for seniors. In a contradiction, Figure 2.4 illustrate the internet function older adult uses, and function such as instant messaging and chat rooms holds a high percentage, which means the there is a high possibility that the online content fail to design suitable for them.
Further, Figure 2.6 illustrates the categories that have sign of increasing as aging; they are articles with financial and banking, news media, life and leisure travel and medical and healthcare.
In other word, older adult are decrease of interest in browsing onto those site due to unsuitable or unattractive content, therefore they choose to browse something else that benefits them. Therefore, the creation of this innovation platform will consists the analyzed result that meet the unmet satisfaction.
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CHAPTER 3 INNOVATION PROPOSAL
Section 3.1 Product Innovation Concept and Development Process
Figure 3.1 Innovation Proposal Framework
Source: Innovation SCREW, Hsu Mu-Yen, 2010, Secondary Data Compilation.
文化
Experiment, Evaluation:
Creating a sample platform for tests.
Search : Establish a social network travel platform
Innovation Online Travel Social Network Platform Mechanism Social Economic
Condition: Aging population continuous rising, demographic unbalance
Political and Law Environment: Senior service promotion is at the immature stage. stage,
Physical Condition:
Broadband Internet services are not stable and require individual sign-up.
Mental Condition: Senior facing challenge adopting new method of the online social networking
Hardware
Technical Knowledge Software
Re-search,
Re-Combination: Defocus each platform’s unique element and re-combining it.
Work, Weight: Pre-Beta test, to fix BUG with users’
feedback. Ready to launch
Culture
Given Computer Hardware Internet access, and installed Google Earth Plug-in and Facebook Account
A geographical social networking platform, allows user to browse worldwide events
Facilitators require to educate the users about the operation function
Develop a positive platform where users enjoy helping and sharing with others.
Combination: Analyze the possible solution for the platform
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Figure 3.1 is the brief description of innovation concept and the following are the detail description.
Innovation Principle and Initiatives
1. Physical Condition: Broadband and high speed internet are not stable and not available to all seniors, in a nursing home, the individual require signing up on their own. However, in year 2011, Taipei City government promotes free wireless service within metropolitan that available to all nations.
2. Mental Condition: Seniors are used to the traditional social networking, while the new online social network is a new channel for communication and interaction.
3. Social Economic Condition: Aging population continue to grow, government requires complementary measures in respond. According to Ministry of Economic Affairs under Department of Industrial Technology has created a U-Care Flagship Proposal, it is mainly addressing healthcare issue for aging.
Innovation Mechanism 1. Innovation Driver
There are two major factors that derive and initiate the innovation driver, they are environmental issue; aging society, and new online services popularity; and online social networking, and the combination of these two sets the foundation driver.
2. Innovation SCREW Key Spinning Point
Within recent years, Taiwanese government actively promoting local tourism, meanwhile, this platform can enhance the countries’ recognition on a global perspective; therefore partnering up with government will create an win-win situations for both party.
3. Innovation Specific Key Result
Many of the online social networks have been created, and each social network
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theme distinguishes from each other, many of the core concepts expands and replicate from the fundamental basis of social network core value; the community.
Development Process
The development process wasn’t that easy, it took two major adjustments before reaching this current stage, each stage establishes a milestone, and the following are the briefing of the innovation roadmap.
Version 1
After tour some of the nursing homes, one acknowledges there are two types of nursing home, a healthy condition one and the disable one; the one who requires doctors onsite care. However, even on the healthy condition seniors, they still have both major and minor physical limitations. After some discussion with the volunteers and the social workers, one understands the senior do participate the events host by the social workers. An interesting discovery that there are computer classes provided to the senior and every class is full house, which was unexpectedly surprising.
Therefore, the inspiration came from creating a online community for seniors to play.
Nonetheless, after completing some of the research, the similar product has already been launched, it is called Second Life. Therefore, the designing platform should be distinguishable, but the concept of online platform continue persist.
Version 2
The first version was unsuccessful, the revised version continue underlie on the online platform principles. To understand the user, one must tackle on the user’s
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behavior, thus one searched for the Taiwanese internet user’s behavior, and found the users in this group in accordance with the demand analysis.; news and media, healthcare system, financial banking and leisure and travelling. Selecting travelling due to rest of the categories does not tied with physical limitation, and as mentioned even a healthy senior may be confined by their physical strengths and durations. Thus, put to the test, although these candidates are confined, but it doesn’t mean they don’t want to explore the world, besides, these candidates are has time and possible wealth.
Rather many of the challenge destinations blocking ahead, they can still perform social network to understand a place with chats, photos and videos aside from actual travel. Therefore, based on some of the given platforms, no platform yet has fully utilized the travelling and social networks. To make it exciting, the platform require younger generations to participate, the bottom line is what makes them connect, and what makes younger generation attracts so that this platform is also benefit for them?
Version 3 is on section 3.2 will describe the latest product development.
Section 3.2 Product Innovation Content and Functions and Usage
The propose internet platform is named Funscouting, and the product detail and functions as follow:
FUNSCOUTING.COM
With aging population increases, Funscouting is an innovation social network travel service platform that is designed for older adults that allows them share, connect, read and request exciting destinations, memberships is free. This platform is open that allows users to social beyond their social groups than closed circles.
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Funscouting is a unique interactive web-platform that operates under a niche market;
we strongly believe Funscouting will lead a brand new method of building interpersonal relationships while travel on a social networking basis.
Service
Funscouting is an interactive web-based travel social network that integrated with Facebook and Google Earth platforms. It allows user to explore the world and make new friendship and browse world photos and videos. To make it much more exciting, when each member performs an activity the users earns with rewards points and rank titles, in addition bonus points will be given with special participation. These collected points can redeem for future travelling services as well as it publish the user’s recognition.
This platform is fun and unique, in the traditional social network such as Facebook or LinkedIn, they allows people to connect to people they know or meeting new people based on a mutual interest such as professional interests. Often times the users only network with the people they know in a circle. Funscouting would like to challenge that barrier by expanding the networking platform on Google Earth platform. Currently, Google Earth allows users to browse the earth on what are available, however it neglect the niche demands where it is not common tourist attractions and yet networking platform. If the user is an enthusiastic traveller that are restricted by time, health, or money and would like to make new multi-culture friend, Funscouting will provide an ultimate experience and solution. Funscouting is a fusion of these which allows you to connect and make new friendship and not limited by the destination boundaries.
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What makes this platform unique is that when it compares with the other social
What makes this platform unique is that when it compares with the other social