Xerophone: Business Model Innovation and Analysis Report

This report analyzes Xerophone, a start-up application designed to manage smartphone usage for increased productivity in the UK and Irish markets. The report includes a PESTLE analysis to assess political, economic, social, technological, legal, and environmental factors influencing the applicatio...Read More

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Table of Contents
Introduction......................................................................................................................................4
Background & Context................................................................................................................4
Analysis........................................................................................................................................5
Pestle Analysis.............................................................................................................................5
Swot analysis...............................................................................................................................6
Summary......................................................................................................................................6
Current innovation strategies.......................................................................................................7
Current business model................................................................................................................8
Business model innovation........................................................................................................10
Research analysis & recommendation.......................................................................................12
Scotland First.............................................................................................................................13
Open innovation & culture.........................................................................................................14
Sustainability..............................................................................................................................14
Digital strategies........................................................................................................................14
Recommendations Summary.....................................................................................................15
Alterations to BMC post-recommendations..............................................................................16
Appendix 1.....................................................................................................................................17
Pestle Analysis...........................................................................................................................17
Appendix 2.....................................................................................................................................18
SWOT Analyis...........................................................................................................................18
References......................................................................................................................................19
Minutes of meeting....................................................................................................................21
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Introduction
The application and equipments that are being developed through the usage of scientific
knowledge is referred to as technology. This aspect of market is evolving continuously and
people are addicted to usage of smart devices. It enables to remain active with respect to world
around them (Doulgeroglou, 2015). Digitalisation has provided a new perspective into the things
which yields both affirmative and pessimistic impact on the one who is making its use and
people surrounding them. Smartphone applications are software which are designed for running
on either phone or watch. They are developed to provide the basic features to users such as
calendar, database, email and many others with an aim to furnish a simple way to carry out their
activities. This report is based on Xerofone, which is a start-up firm who have developed an
application which can be used within iOS as well as Android devices. This report comprises of
background of the concept, analysis in context of SWOT and Pestle along with this innovation
strategies and business model has been illustrated in this. Furthermore, business model
innovation is provided along with distinct digital strategies which are being used by firm for
bringing in their product within the market.
Background & Context
People are addicted to smartphones which hampers their performance in schools or their
working area. If they are being used for gaining knowledge then it is obvious that they can render
their responsibilities in an affirmative manner but in case if this is not so then there will be
pessimistic impact. It can be understood by taking an example like the research was carried out
in 2016 by different individuals and it was found that there was around 6.4% enhancement
within test scores. This implies 5 extra days in school. The other instance can be taken with
respect to usage of phones, survey was carried out by Office of National Statistics United
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Kingdom and it was observed that on an average employee makes use of smartphone for 1 hour
within working hours which means 5 hrs per week. On the basis of average industrial wage it
will cost near about £2,802.00 per each employee per year which is a huge amount and leads to
huge financial loss. For addressing such kind of issues Xerofone has built in their own
application in which company, school or parents can block different aspects within smartphones
of individuals by making use of 3G or 4G connections.
Analysis
From background it is clear that, the application developed by Xerophone will lead to
productivity of individuals either it is in context of students or employees. But the major aspect
is privacy of devices or content present on them. There exist distinct factors which creates an
impact on the ways in which application works (Green, 2019). With respect to this, analysis has
been provided below:
Pestle Analysis
As Xerophone is opting to bring in their application within market of UK and Irish, they
need to take into account different factors which can impact their software. These elements are
illustrated below:
Political factors: In context of software, it comprises of importance as well as political
stability within economy of country, intellectual property rights and favoured trading partners
which are opted by Xerofone. Brexit might create a impact on this along with this industrial
safety regulations have to be followed.
Economical factors: This involves intervention of government within the ways in which
software is delivered in market by Xerofone, infrastructure quality within applications,
comparative edge within host and technological sector within Irish and UK. Along with this,
skills possessed by individuals within software industry have to be considered by organisation
(YANG and ZHU, 2012).
Social factors: Here, skill levels of population have to be acknowledged so that they
understand the reason behind launch of application. Basically, it implies the ways in which
society will react with respect to application brought in by Xerofone. Here, skills as well as
demographics will also be taken into account by organisation.
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Technological factors: This is one of the fastest disrupting area and transforming quickly.
For this, it is important for firm to be innovative with respect to technologies prevailing within
the market. Xerofone is bringing their software for iOS and Android devices but windows
smartphones are also available within the market. Apart from this¸ firms who make use bring
your own device also needs the application which can block access on the systems also (Perera,
2017). This will act as an important aspect for Xerofone to take into consideration. Furthermore,
rate of diffusion must also be taken into account and cost associated with entire process.
Legal factors: With respect to this aspect, Xerofone needs to ensure anti-trust laws,
copyright and patents or intellectual property law, data protection act and consumer protection.
They need to ensure that applications are blocked by software then security of their users must
not be breached and individuals must not have access to data present within them (Doulgeroglou,
2015).
Environmental factors: Xerofone can opt for green infrastructure as well as energy
efficient information technology infrastructure that are liable for empowering sustainability
roadmap and widespread deployment for smart metering within their operations in Irish and UK
market.
Swot analysis
It denotes internal factors which might create impact on the ways in which organisation is
delivering their services. These elements have been illustrated beneath with respect to Xerofone:
Strengths: They will disable smarphone technologies such as social media, gambling and
social site. This will lead individuals to emphasise on activities that are being carried out by
individuals (Rehman and Khan, 2012). It creates an affirmative influence on performance of
individuals either they are employees or students.
Weaknesses: Maintenance cost will be high as well as high risks from third persons to
get access into devices by making use of different attacks such as man in middle or cross site
scripting. In case if intruder is able to do so then Xerofone will have pessimistic impact on their
services.
Opportunities: It will render individuals with extra features which are not provided by
other application developers. Business to business approach is being utilised to furnish enhanced
benefits to their users (Shojaie, Hamidian and Basiji, 2014). Subscription package is offered at a
charge of $2.99 along with entry within the market after Brexit.
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Threat: There are many competitors who are financially strong. Along with this similar
kind of products are being offered within market of Ireland and UK.
Summary
Xerofone is bringing an application within the market by which certain social media
platforms will be disabled for a certain period of time. This is doen to attain a enhanced result as
people are addicted towards their smart devices which declines their overall performance. But for
having impelling results it is necessary to abide to certain laws which are formulated by
government to ensure that they remain away from any kind of issues which might hamper their
overall performance (Green, 2019). It is necessary to identify their strengths and weaknesses so
that they can be turned into positive by making use of opportunities they have by elimination of
threats.
Current innovation strategies
The process of creation of new values for people who are willing to make their use and
pay for them is referred to as innovation. Strategies is a term which is denotes a plan that is being
used for harnessing for an instance operations, R&D, finance and marketing for supporting
attainment of competitive goals. From here, innovation strategy can be defined as explicit
roadmap for reaching desirable future (Zurawka, Schaeuffele and Carey, 2016). They are being
utilised by organisation for inspiring enhancements within services and technologies by making
investments in research and development. This will aid Xerofone for attaining competitive edge
within the market. They have analysed the market and identified what will yield affirmative
results to various aspects of society. There strategy is to be a world's leading management
software which will enable society for controlling usage of smartphones before they control
them. Their strategies are illustrated beneath:
 The apps developed by their competitors gather data from users but Xerofone did not do
this. It comprised of browsing habits, activities carried out within app downloaded,
content present on messages along with their location. This was considered as breach of
information by Xerofone and they aims at protecting information so that it is not used by
anyone.
 The apps which are provided within the market are marketed as well as directed to
parental control but strategy of Xerofone was to furnish synchronisation among education
as well as home (Ghaisas, 2016). This can be understood by taking an instance like when
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child goes to school then parents can control smartphones of their child and school can
also do the same but of multiple students within the school hours.
 Xerofone provided firms with an option to save money, mostly organisations do not
allow smart devices within the working environment. But Xerophone provided
employees to bring their handset within working environment so that they have their
phone in case any kind of emergency takes place and also limit activities carried out.
The criteria behind bringing in innovation is that technology is not a problem but
challenge exist within ability to control use of technology rather than it control them. For this,
Xerofone brought in long term pragmatic strategies through which they can ensure that goal is
attained (Pedersen, 2016). Research have been carried out for identification of need for
controlling use of smartphone within business, home as well as business. This hinders quality as
well as performance which leads to decline within overall results. For this, Xerofone aims at win
cross-sectoral acceptance which will disable smartphone technologies. Their strategy also
included to target different sectors of market, they are illustrated beneath:
 Companies in which of Xerofone application will assist them within improvisation of
productivity of employee so that overall cost can be saved.
 Within the education sector, application or software will minimise distractions that leads
to high levels of engagement of children as well as teenagers in classroom to accomplish
their potential.
 Home where, children can stay away from enhanced use of digital world which will
enable them to have physical experience (Devadiga, 2017).
 Emphasis was laid on business to business (B2B) market as in this section transactions
have to be made in between companies. When working in such kind if environment and
for having appropriate results Xerofone application can be used as it will furnish
appropriate result.
Current business model
Xerofone for bringing in their innovation within the market have carried out research
with respect to what will lead them to have enhanced research and accordingly carried out
development of their software or application. The aim was to disable certain notifications from
different platforms either social media or emails. Rationale for this was to eliminate distraction
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which is caused by notification while delivering their services as sometimes it lead to major
accidents (Anderson and et. al., 2016). Along with this, it will renders enhanced results and
overall productivity can be improvised, this can be understood by taking an example. Like, it was
clear from the facts that individuals check their smartphones around 150 times each day or it can
be taken as at every six minutes. It was also identified that individuals who are addicted to these
devices are prone to accidents such as collisions or bumps, slipping, falling from height or any
other kind of accident.
For this, Xerofone have opted to make use of business to business model (B2B) which
comprises of trading of services and goods among two different corporate entities.
The B2B model is liable for carrying out communication as well as trade among distinct
organisation in form of business house trade goods as well as services with other firms (Ouali,
2017). The reason for this is that while carrying out business meetings if someone gets a
notification and phone is on ringing then it will lead to creation of disturbance. Along with this,
making use of different applications while interacting with others also create a negative impact
on individuals. Thus, the app provided by Xerofone will yield them with affective results by
limiting some activities within conference or meeting hall. The model comprises of different
aspects like electronic procurement, e-Human resource management and e-Customer relationship
management. The electronic application will be provided by Xerofone which will enable to
restrict certain aspects present within the smart devices. There exist different kind of B2B e-
commerce models, they are depicted below:
 Supplier centric model: In this context, supplier builds up electronic market with respect
to products which are being supplied by them. Here, suppliers are liable for rendering
customised pricing as well as solutions as per requirements of buyers (Schmidt, 2016).
With respect to this, Xerophone is supplier who will provide an application to different
organisations.
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(Source: E-Commerce Models – B2B, B2C, C2C & Its Types, 2019) Buyer centric model:This B2B framework or model is utilised by Big business houses
who are responsible for carrying out higher volume of purchases and also possess huge
purchasing capacity. Xerfone has set up electronic platform which will enable them to
stay focussed on their operations like requesting for quotations.
(Source: E-Commerce Models – B2B, B2C, C2C & Its Types, 2019)
 Intermediary centric model:It is an electronic market maker who is liable for rendering
electronic platform for connecting different sellers as well as buyers for facilitating
transactions among them (Idri, Abnane and Abran, 2016). They acts as an intermediary
for peculiar segment where each individual involved within can connect. Xerofone can be
used here to restrict the distractions which might create an impact on ways in which
services are being delivered.
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Illustration 1: Supplier Centric Model
Illustration 2: Buyer Centric Model

(Source: E-Commerce Models – B2B, B2C, C2C & Its Types, 2019)
Business model innovation
The development of unique and new concepts for supporting financial viability within
organisation which comprises of their missions as well as processes for bringing in concepts to
success is referred to as business model innovation (Strode, 2016). It aims at realising new
revenue sources through improvisation of product value and the ways in which they are being
delivered within the market. Xerofone is about to launch their application in 2020 in which will
enable parents, school as well as organisations to time lock different aspects associated with
smartphones of individual and can be accessed remotely through usage of 3G and 4G
connections (Barabanov, Markov and Tsirlov, 2016).
In this context, Xerophone can opt for making use of business canvass model which
assist within understanding business model in structured as well as straightforward manner.
Basically, it denotes graphical representation of distinct number of variables which will illustrate
value of firm (Mohammed and et. al., 2017). This can be utilised as an strategy tool for
launching an application within market of UK as well as Ireland. They includes nine different
elements which will aid Xerofone to acknowledge different aspects related with their application.
It is illustrated below:
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Illustration 3: Intermediary Centric Model

Key partners
 Joint ventures who
have started with a
identical start-up
 Collaboration with
bigger brands like
Apple Risk assessors
Key activities
 Development of
platforms.
 Ensure security as well as
accessibility of content of
individuals who attempts
to block certain aspects.
 Marketing of application
to attract enhanced
number to individuals
towards it.
Value proposition
 Control all the
applications which are
installed with
smartphone except
calls and messages.
Along with this
content present within
them will not be
accessed by anyone.
 Minimisation of
distraction for their
employees or students.
 Data of customers will
not be saved and their
location will not be
accessed.
 Well-being of students
as well as employees.
 Easy for usage.
Customer relationship
 Furnish personal
assistance for usage
of application.
 Carry out trial runs
to show individuals
how it works. Cost for this is not
identified yet.
Key resources
 Technological
infrastructure
 Revenue stream via funds
provided by shareholder's
and subscription.
 Customer relationship by
providing promotional
offers to individuals.
 Sales of application by
Revenue stream
 It provides
subscription.
 Funds are generated by
shareholders.
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making use of play store
and app store
 Research and
development centre.
Distribution channel
 Social media will be
used for dispersion.
 Usage of business
networks.
 Long term contracts
along with monthly
subscription.
 Provide discounts
for attracting their
customer’s. Development of
transparent policies.
Cost structure
 It includes wages for
development team as well
as other staff of
Xerofone.
 Cost involved within
rendering advertisements.
 Research and
development prices.
Customer segment
 They are corporates
which involves
employees as well as
employers.
Research analysis & recommendation
Xerofone is about to bring in their application within market for UK as well as Ireland. It
is an innovative idea with an aim for enhancing productivity of organisation and individuals by
restricting certain aspects of mobile applications (Akgün and et. al., 2017). This can be
understood by taking an example like Apple is providing an application which is not exactly
identical to Xerofone but provides control to parents for restricting certain content like parents
can control devices of their children but also provides details related with what is assessed by
them and browsing details. But in case of Xerofone privacy is retained by only providing them
with control to restrict certain applications. Basically, it aims at furnishing individuals with
power to control behaviour of individuals which will enable them to carry out their operations as
per desired standards.
It is recommended that business to consumer (B2C) model can be utilised which will
render them with an opportunity for browsing, selecting, customisation as well as buying of
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products by making use of online mediums. Depending on the competitors (Screentime, Ourpact,
Kidslox and iKydz are direct competitors of Xerofone) present within the market, the cost
associated with subscription must be revalued. Along with this, it is suggested that website must
be updated with respect to latest information and updations which have been made within their
software.. Premium discounts must be offered to their regular users along with this free trial has
to be offered so that individuals become aware about what they are being provided as well as
how it can be used. In addition to this, persons whose smartphones are restricted must be
provided an overview of application so that they can be ensured that any kind of negative impact
is not created or there information is not accessed by the one who is controlling their application.
Scotland First
Xerofone is an application which will be initially launched within the market of Scotland
in 2020. The rationale behind this is that it has a strong economy as wide range of small and
medium organisations are present there along with schools. Furthermore, there are various
schools also (Ilin and et. al., 2017). This will provide them with an opportunity to have an
affirmative impact on their application. As there are ample of SMEs, they are looking for
increasing their profit margins and Xerofone will render them with an appropriate option. An
example can be taken to understand this aspect like on an average employee use their phone for 1
hour per day, this implies 5 hours a week and this will lead to loss of around $2800 per
employee. So if within organisation, there are 100 employees then the amount will increase.
Therefore, by making appropriate use of Xerofone application, SMEs can have higher amount of
profitability as well as schools can also have good results.
Open innovation & culture
It is important to identify purpose in terms of change which has to be seen around the
world. Like employees or developers within Xerofone works with a rationale to earn. Similarly
organisation, is rendering their services to earn higher profits as well as provide unique services
within market which will enable them to build strong market image (Behutiye and et. al., 2017).
Developers need a climate change as this will lead to bring in something new and when this is
done then also some improvisations can be made. Xerofone must acknowledge the viewpoints of
their employees as it might provide them with enhanced options within their application.
Competencies of firm must be defined with respect to what they want and what their probable
customers are delivering within market of UK and Ireland. With respect to strategies must be
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formulated and it must be ensured that according to this operations are being carried out. Reach
out maximum stakeholders as it will assist them within giving idea about what they are
launching is apt or not and either it will be able to meet the standards of market.
Apart from this, each individual must be aware of the fact that Xerofone is open to
innovations whether they are from internal or external environment. Here, within there website
an option can be provided for registered users to make their views or give suggestion with
respect to what they can deliver (Dragicevic, Celar and Turic, 2017). Along with this, existent
relationships must be transformed so that healthy environment can be created. This will lead to
build knowledge base and this acts as an appropriate measure for for development of progress.
Sustainability
The process which emphasise on accomplishment of requirements of present without
making any kind vulnerability with respect to future generation is referred to as sustainability. It
comprises of profits and people. The sustainability of application of Xerofone can be ensured
through the ways in which individuals perceive it (Idri, Hosni and Abran, 2016). For an example,
some people may take it as as affirmative aspect to enhance their operations and others might
think it as an attempt to get access to their details. This means that firm can only acknowledge
feasibility of their product but its sustainability cannot be ensured until it is successful within the
market. Xerofone needs to launch their product after that only this factor can be measured. But
other aspects can also be considered like if same kind of product is not provided within the
market then it will be success. Along with this, when security is maintained then also
sustainability of application can be ensured. Therefore, it is crucial for Xerofone to ensure that
there application will deliver for what it has been designed as well as appropriate measures are
being taken.
Digital strategies
There are distinct plan of actions which are being utilised by Xerofone to ensure
enhanced delivery of services within market. As technology is evolving continuously, it is
important that firm should bring something new within the market to ensure their sustainability
in market of countries like UK, Ireland, etc. For this it is important to make appropriate usage of
strategies, digital strategies have been illustrated below:
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 Minimise the utility bills by reduction of number of devices which are needed charged
within working hour as unwanted notifications will be eliminated or blocked (Gilal and
et. al., 2016).
 Adherence to GDPR by having capability for locking camera as well as other sources
which are required for prevention of data leakage.
 Do not make use of sensitive information of individuals while controlling their activities
carried out within specified time duration. Security must be maintained in context of
location must not be accessed as well as access to messages will not be provided.
 Synchronisation has to be provided, for an instance if application of Xerofone is used by
parents as well as school then if one need to restrict Twitter and other Facebook then each
must have control. It should not be like if one is restricting then other cant do this.
Xerofone application must provide control to both of them so that as per requirements
they can restrict activities of students or employer within the organisation of employees.
 The essential element is that all the elements must not be controlled as otherwise it will
not be of use to carry their smartphones as they wont work (Hobbs, 2019). Thus, it is
important that emergency calls can be made in case it is required.
Recommendations Summary
It is recommended that Xerofone must opt for transparent policies so that each individual
involved within usage as well as on whom this application is being utilised must be clear. So that
they can decide whether specified app can be used or not and whether their privacy is
maintained or not (Kudaravalli, Faraj and Johnson, 2017). Along with this, it must be easy to use
which will enable each individual to understand all the aspects associated with the way in which
application is being developed. It is suggested that after carrying out sales, promise which was
made must be adhered to which will render 24*7 support for their customers. For an instance, if
individuals feel that some unwanted messages are sent through the usage of device then they
must have proper support from management of Xerofone to handle this. They can also have a
joint ventures with small start ups so that they can increase number of sales which are being
carried out.
It is further suggested that Xerofone can target the global market in different sectors
which will aid them to create influence in society. Like it can be used within public sector,
medical, banks and call centres (Bilgaiyan, Mishra and Das, 2016). This will aid them to gain
15

profit as there sales margin will be increased as well as individuals who is making its use will
also have amplified benefits. When employees will be able to deliver their services as per
required standard and concentrate on the ways in which they are working, it will lead them to
have overall affirmative impact on their operations.
Alterations to BMC post-recommendations
Certain suggestions have been made with respect to application developed by Xerofone
so that overall benefits can be enhanced. By making use of these suggestions, certain affirmative
assets can be acquired by them like problems associated with declining results of individuals
within either school or college can be enhanced, firms can have effective workforce who will be
emphasising on their work rather than smartphones. Apart from this, by making use of business
to consumer (B2C) model Xerofone can have impelling results like great customer services can
be delivered, when support will be provided 24*7 then it will lead to build trust in between them
and individuals will also feel valued. This will allow them to have adequate growth within their
business along with this it will become easy to reach maximum number of individuals through
word of mouth. By carrying out revaluation of cost with respect to their competitors, they can
make their mark within the market. The reason behind this is that as there least competitors
within the marketplace and their application also make use of certain content of individuals smart
devices like what they browse and messages which are being received by them. This denotes that
Xerofone has affirmative edge within the market as security and privacy of their individuals is
maintained.
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Appendix 1
Pestle Analysis
POLITICAL ECONOMICAL
In this, it is essential in relation with software
to abide all the rules and regulations that has
been framed by government.
It has been identified that with having strong
economic stability launch of app will turn out
be advantageous.
SOCIAL TECHNOLOGICAL
This factor include values, believes and
perceptions of society. In this it is essential to
make customers educate about main reason
behind app launch.
With the continuous evolvement in technology
and innovation, it is essential to adopt changes
that prevails in marketplace.
ENVIRONMENTAL LEGAL
As per according to this factor, it is essential to
undertake operations of business in
environment efficient manner as to ensure
more sustainable growth. With the help of this
more effective growth opportunities can be
effectively ensured.
There are different types of laws and
regulations that has been framed by
government and is necessary to adopt as to
conduct business operations in more effective
manner. In this, Xerofone is required to adhere
all the related and important legal legislations
embedded by governmental authorities as to
ensure more sustainable growth. As negligence
of this factor may subsequently lead company
to face number of hefty penalties.
With the help of PESTLE analysis significant strength, weaknesses, threats and
opportunities can be duly ascertained with the help of which further growth advancements can be
duly ensured.
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Appendix 2
SWOT Analyis
STRENGTH WEAKNESSES
One of the most important strength that has
been hold by Xerofone is that it will disable
smartphone technologies like social sites,
social media and gambling.
One of the major weakness that has been hold
by Xerofone is that in order to maintain this in
significant manner huge cost will required.
THREAT OPPORTUNITIES
There are many other competitors those who
perform their operations in same sector, as
some of the certain rivals have strong financial
rivals.
Xerofone is having significant opportunity in
which they can offer their application to
customers with more additional features in
order to gain more competitive advancements.
Minutes of meeting
Minutes of meetings are termed as notes that mainly capture what happened at meeting.
In addition to this, despite of meeting agenda it also record actions as well as decisions that has
been duly requested by group. Thus, in order to successfully launch Xerofone in the year 2020 it
is utmost important to capture each and every necessary information such as decisions made,
next step, action items and the individual who is responsible. It is essential to take use of minutes
as it benefit those individuals who were unable to undertake meeting. Thus, with the help of this
they can effectively able to reflect back to the main point of meeting. This will significantly help
in successful launch of Xerofone as it allow to keep each and every individual on proper track.
Most important details which is essential to cover in meeting minute involve date and time of
meeting, name of the participants, agenda items and topics discussed and action items. With the
help of this, effective engagement of each and every individual can be significantly ensured that
further benefit in successful launch of project in future. In addition to this, it has been identified
18

that meeting minute is also termed as note or protocol and is a live written record of meeting.
Thus, it become essential for Xerofone to take use of meeting minute in order to ensure success.
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Minutes of meeting
Minutes of meetings are termed as notes that mainly capture what happened at meeting.
In addition to this, despite of meeting agenda it also record actions as well as decisions that has
been duly requested by group. Thus, in order to successfully launch Xerofone in the year 2020 it
is utmost important to capture each and every necessary information such as decisions made,
next step, action items and the individual who is responsible. It is essential to take use of minutes
as it benefit those individuals who were unable to undertake meeting. Thus, with the help of this
they can effectively able to reflect back to the main point of meeting. This will significantly help
in successful launch of Xerofone as it allow to keep each and every individual on proper track.
Most important details which is essential to cover in meeting minute involve date and time of
meeting, name of the participants, agenda items and topics discussed and action items. With the
help of this, effective engagement of each and every individual can be significantly ensured that
further benefit in successful launch of project in future. In addition to this, it has been identified
that meeting minute is also termed as note or protocol and is a live written record of meeting.
Thus, it become essential for Xerofone to take use of meeting minute in order to ensure success.
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