-
Notifications
You must be signed in to change notification settings - Fork 0
Feasbility Study
This application uses React Native (Expo) and a few other libraries (React Navigation, React Native Reanimated, TailwindCSS) for the front end. The features this application provides will make the frontend application a Rich client. This might make pushing logical change updates difficult (since everyone won't be on the same update). However, the application is expected to be minimal. The front-end application will not be released until all the necessary functionalities are available. Certain Design aspects will be discussed later in this document.
The back-end infrastructure is what needs to be scaled up depending on the traffic. If the traffic is unpredictable, using Serverless functions is recommended for efficiency. However, currently, the proposed service is Firebase for Backend-as-a-service, so that focus can be made on the front-end application since it's a Rich client and certain logic is necessary.
This application is made for the purpose of a mockup, using Backend-as-a-service (Firebase) permanently is recommended since it will cover all the necessary functionality.
The Application's ROI will depend on how much the application will influence the market - getting the application into users. With these statistics, this application will contain a subscription model for Insurance corporations to handle claims from their end. The subscription models will help the application grow financially while covering infrastructure and development costs.
The users can download and use the application for free. Therefore, by 3 months of publishing, the application is expected to have a potential user count to influence Insurance cooperations. To get both users and Insurance corporations onboard, the first 3 months will be free.
From the technical feasibility study, it is clear that the front-end application will need time before it hits the market. This in addition to the 3-month grace period will make the ROI significantly delayed.
| Activity | Costs (LKR) | Duration (Months) | Total (LKR) | Description |
|---|---|---|---|---|
| Development | 160,000 | 7 | 1,120,000 | Salary of 40,000 (LKR) x 4 Developers, 4 months of Development |
| Infrastructure | 90,000 | 3 | 270,000 | This will be active once the development is complete |
This will make a total of 1,390,000 LKR for 7 months. The Infrastructure costs will continue and might increase according to demands. Let's make the assumption that the infrastructure costs increased to 120,000 LKR.
Please note that these prices are not real as this project is a mockup.
There are more than 20 major Insurance Corporations in Sri Lanka. The subscription model will be as follows:
| ID | Cost per month (LKR) | User Base |
|---|---|---|
| 1 | 50,000 | 0 - 1000 |
| 2 | 100,000 | 1000 - 5000 |
| 3 | 200,000 | 5000 - 10,000 |
| 4 | 500,000 | > 10,000 |
The user count by the end of the 3 months is expected to be 100,000 and the total spend cost will be 1,390,000 LKR.
If we are taking the worst-case scenario, it will be 100,000 divided across all 20 Insurance - which will be 5,000 each and the cost per month of 100,000 LKR.
The total income per month will be 100,000 LKR x 20 Insurance corporations = 2,000,000 LKR monthly, which will cover all the past costs plus the current infrastructure costs.
The profit for the first month will be 2,000,000 - (1,390,000 + 120,000 + 160,000) = 330000 LKR
The next month will be - 2,000,000 - (120,000 + 160,000) = 1,720,000 LKR
Note: Salaries and infrastructure costs will increase over time, and so will the ROI.
Note: These finances were made excluding unexpected costs (ex: More infrastructure, high salary expectation, hiring costs, etc)
These numbers are arbitrary since this is a mockup application.
Data collected from the application will contain personal information (Email address, Vehicle information, user location, photos of personal property).
This application will follow the PDPA Act for Data Protection.
Below is a simple Plan for Development:
| ID | Cost per month (LKR) | User Base |
|---|---|---|
| 1 | 50,000 | 0 - 1000 |
| 2 | 100,000 | 1000 - 5000 |
| 3 | 200,000 | 5000 - 10,000 |
| 4 | 500,000 | > 10,000 |
Check out the following links to know more: