JP Morgan Chase is a global leader in the banking industry because of their
focus on innovation. They offer added value to their business customers in a variety
of ways such as “web site-building software, simplified e-billing services, business
surplus marketplaces, small-business leasing, document storage, and investment
services” (Global Finance 2001). It is no surprise that Chase would approach not
only their credit company, MasterCard, but also another leader in financial services,
Intuit QuickBooks when developing their new small business credit card product,
QuickPort for Small Business.
QuickPort for Small Business is a completely new way for small business
owners to keep track of their expenses using their debit and credit accounts in
conjunction with the QuickBooks software they already use and love. The product is
a MasterCard that has flash memory embedded. Business owners can directly sync
the information gathered by the card throughout the day with the QuickBooks
software installed on their computer by simply plugging the card into any USB port.
Other important features allow business owners to tie the cards to payroll accounts
and other QuickBooks functions they already use while cutting down on man hours
that would otherwise be used to hand enter data into the program.
Table of Contents
1. Introduction
2. Focus
3. Goals
4. Form
5. Technology
6. Attributes and Benefits
7. Need
8. Problems that May Arise
9. Cost to Produce
10. Cost to the Business Owner
11. Budget
12. Forecast
13. Technology
14. Prototype
15. Marketing Plan
15.1 Pricing Strategy
15.2 Promotion
16. Distribution
17. Cost to Enter the Market and Profit Potential
18. Launch
18.1 Timeline
18.2 How to Launch
18.3 Why is this the right product launch?
Objectives and Topics
The primary objective of this project is to evaluate the feasibility and market potential of "QuickPort for Small Business," a specialized MasterCard designed to integrate directly with QuickBooks accounting software. The research explores the technical, financial, and strategic aspects of launching a payment tool that simplifies expense tracking and payroll management for small business owners.
- Integration of financial payment hardware with accounting software.
- Market research on the needs of small business owners regarding expense management.
- Financial modeling, including production costs, budget allocation, and revenue forecasting.
- Strategic marketing and promotional approaches for specialized financial products.
- Technological implementation and the use of integrated flash memory in credit cards.
Excerpt from the Book
Attributes and Benefits
The QuickPort allows business owners an easy way to track their expenses each day. They simply connect the QuickPort to their computer via any USB port and QuickBooks starts automatically. After uploading the information stored on the internal flash memory, the QuickPort is automatically ejected from the computer, and QuickBooks begins adding it to a file. After the file has been created the user has the option to save it in a new file, add it to an existing file, or use it in some other way.
Automatically syncing the QuickPort with the QuickBooks program cuts down on man hours that would have normally been spend manually rekeying transactions into the QuickBooks program. It also allows the business owner to avoid sometimes costly errors that result from manual rekeying entries.
Another feature business owners can utilize is the QuickPort’s clock in/clock out feature. QuickBooks is equipped with payroll software. The QuickPort allows them to quickly clock in and clock out with exact hours worked being automatically added to the payroll portion of QuickBooks.
Keeping exact time in and out can save business owners time and money. There are no longer discrepancies between how long an employee was working because each minute is accounted for and no money is wasted if an employee says they clocked out at 5:00, but really left at 4:50. If an employee earning $12.00 per hour does this once a week for a whole year it can cost a business owner $100.00.
Summary of Chapters
Introduction: Provides an overview of JP Morgan Chase's innovation strategy and introduces the QuickPort for Small Business as a solution for seamless QuickBooks integration.
Focus: Describes the strategic intent of Chase, MasterCard, and Intuit to capture market share by addressing the needs of small business owners for real-time financial data.
Goals: Outlines the research-backed rationale for the product, noting high demand from small business owners and the potential for increased customer acquisition.
Form: Details the physical design of the card, including the embedded flash memory and the ultra-thin lithium-ion battery used for data transfer.
Technology: Explains the reliance on existing technology and the specific use of batteries from PowerStream Technology to ensure durability and charge retention.
Attributes and Benefits: Discusses the primary advantages, focusing on automated expense tracking, error reduction, and integrated payroll features.
Need: Highlights findings from a 2009 survey indicating that small business owners are actively seeking cost-effective tools to streamline financial operations during economic downturns.
Problems that May Arise: Addresses potential technical failures and the mitigation strategies, emphasizing user control over manual data editing.
Cost to Produce: Compares the production cost of the QuickPort against standard cards and evaluates the timeframe for recouping initial development investments.
Cost to the Business Owner: Breaks down the subscription model and additional costs associated with the service for business users.
Budget: Presents the financial breakdown for the initial rollout, covering market research, production, marketing, and web development.
Forecast: Provides a visual representation of projected income growth for the first three years of operation.
Technology: Reaffirms the technical specifications of the card components and the annual replacement cycle for technological upgrades.
Prototype: Illustrates the card design and the functionality of the USB connector and internal storage architecture.
Marketing Plan: Details the tiered pricing strategy and the three-pronged promotional approach involving internet, print media, and bank branch visibility.
Distribution: Explains the simple delivery process via direct mail using protective packaging.
Cost to Enter the Market and Profit Potential: Analyzes the high barrier to entry versus the long-term profitability of the product as a revenue stream.
Launch: Outlines the timeline for the test market release and explains the strategic significance of the launch window.
Keywords
Chase, MasterCard, QuickBooks, Small Business, Financial Innovation, Expense Tracking, Payroll Management, Credit Card, Flash Memory, Market Research, Cost Efficiency, Technology Integration, Banking, ROI, Commercial Finance.
Frequently Asked Questions
What is the core purpose of this project?
The project investigates the viability of the "QuickPort for Small Business" card, which aims to automate the transfer of transaction data from a credit card directly into QuickBooks accounting software.
What are the central themes of the work?
The core themes include technological innovation in banking, small business financial management, market demand analysis, product development costs, and strategic marketing.
What is the primary goal of the proposed product?
The primary goal is to save small business owners time and money by reducing manual data entry and preventing costly errors in expense tracking and payroll.
Which scientific or research methods were used?
The work utilizes market research, specifically data derived from a 2009 study of 1000 small business owners, as well as cost-benefit analysis and financial forecasting.
What is covered in the main section of the paper?
The main sections cover the technical design, benefits, production costs, marketing strategies, and budgetary requirements for the product's market launch.
Which keywords characterize this document?
Key terms include Chase, MasterCard, QuickBooks, Expense Tracking, Payroll, and Financial Innovation.
How does the QuickPort differ from a standard credit card?
Unlike a standard card, the QuickPort contains embedded flash memory and a USB connector, allowing it to act as a hardware interface for transferring financial data directly to accounting software.
What is the strategy for recouping the production costs?
Chase plans to recoup the initial research, development, and production costs within the first year, supported by ongoing subscription fees from business users.
- Arbeit zitieren
- Sarah Long (Autor:in), 2009, Chase MasterCard QuickPort for Small Business, München, GRIN Verlag, https://www.grin.com/document/210791
