The Application of PEST Analysis to the Creation of the Profile of an
IT Product Designed to Activate and Support
Senior Citizens in Poland
Beata Butryn, Wiesława Gryncewicz, Robert Kutera and Maja Leszczyńska
Institute of Business Informatics, Wroclaw University of Economics, Komandorska St. 118/120, 53-345 Wroclaw, Poland
Keywords: IT product, elderly people activation and support, PEST analysis
Abstract: The purpose of the paper is to create a profile of an IT product, using IT tools to collect and to analyse
information and enable communication between elderly people to support and activate them. PEST Analysis
method was used to determine different factors of influence on the domain of elderly people activation and
support Having evaluated the factors and defined the product characteristics, the Authors focused on
defining the profile of the IT product by referring the aforementioned characteristics to the structure of the
product in the marketing understanding thereof.
1 INTRODUCTION
Demographical analyses in Poland indicate that our
society is aging at a very fast speed. The
percentage of senior citizens in the Polish
population is going to increase in the years to come
(GUS, 2014, GUS, 2015, AGE Platform Europe,
2013, Strzelecki, Kowalczyk, 2014). This trend is
accompanied by the globalization of the economy
and by the development of the information
technologies (IT). The two aforementioned
processes are highly connected and dependant on
each other. It is impossible to imagine social and
economic relations without modern IT tools. On
one hand, they integrate all the entities operating
on the market but on the other, they constitute a
reason for the ever-deepening and permanent
social divide and exclusion. Those who are
particularly vulnerable in this respect are elderly
people since they lacked the ability to acquire
digital competencies throughout their professional
careers (Ferrari, 2012, Frąckiewicz, 2009,
Kucharska, 2013). This means the necessity to
undertake measures designed to activate and
support this social group, for example, by
developing IT products suitable for their needs
(MPiPS, 2014).
The purpose of this paper is to create the
profile of such a product. The test method which
was used was PEST Analysis. PEST Analysis is a
tool designed to analyse macro environmental
factors. The factors analysed in the basic form of
the method in question are classified into four
different categories which cover Political,
Economic, Technological and Social factors. The
application of the said method allowed to identify
and validate the macro environmental factors
which influenced the analysed product (Duncan,
1972) (Ward and Rivani, 2005). For the purpose of
this article the Authors adopt the assumption that
the IT product in question is a platform which uses
IT tools designed both to collect and to analyse
information as well as to enable the
communication between the users.
The structure of the article is following: section
2 – methodology, section 3 – technological factors
of the PEST analysis, section 4 - IT product
profile and in the last section – conclusions and
recommendations.
2 METHODOLOGY – THE
ESSENCE OF PEST METHOD
PEST Analysis is also referred to as PESTLE
Analysis, PESTEL Analysis , PESTLIED
Analysis, STEEPLE Analysis, SLEPT Analysis
and LONGPESTLE Analysis (Mindtools, 2015)
109
Butryn B., Gryncewicz W., Kutera R. and LeszczyÅ
ˇ
Dska M.
The Application of PEST Analysis to the Creation of the Profile of na IT Product Designed to Activate and Support Senior Citizens in Poland.
DOI: 10.5220/0005890301090115
In Proceedings of the Fourth International Conference on Telecommunications and Remote Sensing (ICTRS 2015), pages 109-115
ISBN: 978-989-758-152-6
Copyright
c
 2015 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved

(Makos, 2015) (Clulow, 2005) (Voros, 2001)
(Narayanan and Fahey, 1994), depending on what
factors are taken into consideration. The PEST
Analysis is applied to specify political, social,
economic and technical conditions in Poland in the
context of their influence on the profile of the IT
product dedicated to elderly people. In this paper
the Authors characterize in details only the
technological conditions because of this
conference topics. The purpose of the analysis is to
provide conclusions on the general characteristics
of the IT product designed to activate and support
this social group but not to specify detailed
functional parameters of the product. What will be
indicated in this paper are its basic characteristics
resulting from a thorough understanding of the
socio-political, economic and technological
context. The aforementioned characteristics shall
cover such factors as: the living standards of
elderly people in Poland, their digital competencies
and the access to the Internet in their households.
The Authors regard PEST Analysis as the first
stage of research on defining the detailed profile of
the IT product dedicated to elderly people in
Poland.
The examination procedure involved the
following steps:
 Specifying through brainstorming the most
significant factors to be taken into account in
PEST Analysis.
 Verification of the available research reports,
including the statistical ones, and of the
available resources in order to carry out a
detailed analysis of the factors and in order to
specify their impact and likelihood.
 Specifying the influence of the factors on the
IT product profile by defining the
characteristics thereof.
The summery of the PEST Analysis results is
presented in Table 1.
Table 1: PEST Analysis Results
Factor
Impact
(from -2
to 2)
Likelihood
(from 0 to 1)
Influence
(impact x
likelihood)
Product characteristics
Political factors
European and domestic policies
facilitating activation of senior
citizens
+2
0,5
1
Free
Domestic legal framework
-1
1
-1
Compliant with the legal framework
Prolonging working life
1,8
0,6
1,08
Oriented at offering services and
entering into transactions
Economic factors
Structure of income/expenses
-1
0,7
-0,7
Free
Level of wealth
1,2
0,5
0,6
Free
Social factors
Age-related biological, mental,
social barriers in IT perception
-1,6
0,8
-1,28
Adjusted to elderly people’s perception
Help desk support provided
Social mobility
1,4
0,3
0,42
Community oriented (relations and
communication)
Mobile
Integrated with popular messengers
Technological factors
Informatisation level in Poland
2
1
2
Available online
Level of acceptance of
technology by citizens
-1,8
0,3
-0,54
Help desk support provided
Condition of telecommunication
market in Poland
0,6
0,9
0,54
Using popular communication channels
(text messages, e-mail)
Software provision method
1,5
0,7
1,05
Available in SaaS model
Easiness of software developing
0,4
0,9
0,36
Using web standards
Open to integration
Technological progress
0,6
0,7
0,42
Easily expandable
Fourth International Conference on Telecommunications and Remote Sensing
110

The Authors, on the basis of in-depth resource
studies, research and statistical reports as well as
their own experience evaluated the factors which
had been selected at the first stage of PEST
Analysis by specifying their impact (on a scale
from -2 to 2, where -2 was means factors with a
very negative impact, +2 means factors with a very
positive impact and 0 means factors of a neutral
character) and likelihood (on a scale from 0 to 1,
where 0 means unlikely phenomena and 1 means
phenomena certain to happen). The influence was
evaluated by multiplying one of the
aforementioned factors by another.
Furthermore, the Authors determined in
discussion the characteristics of the IT product
dedicated to elderly people. The said
characteristics constitute a response to a given
factor and if the factor is negative, they constitute
an antidote which is capable of eliminating its
influence. At this stage, it is also possible to notice
that according to the Authors, what influences the
IT product dedicated to elderly people in the
strongest, positive way is a high level of
informatisation in Poland and what has the most
negative influence are the biological, psychological
and social barriers in the IT perception related to
aging
Having evaluated the factors and defined the
product characteristics, the Authors focused on
defining the profile of the IT product by referring
the aforementioned characteristics to the structure
of the product in the marketing understanding
thereof. The results of such an analysis are
presented in the section 4.
3 TECHNOLOGICAL FACTORS
Activating elderly people in Poland is closely
related to their involvement in the functioning
within the framework of the information society,
which is dependent on the IT development.
Therefore, what constitutes a very important
element of PEST Analysis in this case is to
determine technological factors which can
influence the examined field.
The first factor is a general level of
informatisation in Poland, which determines the
ability to use technologies suitable to support
elderly people. Three quarters of households in
Poland had the access to the Internet in 2014 and in
77.1% of households there was at least one
computer. The percentage of households with the
access to the Internet and to a computer varied
depending on both the type of a household and the
class and degree of urbanisation of the place of
residence and the region of Poland. These were the
households with children which much more
frequently had the access to the Internet and
computer (the difference between them and the
households without children but with the Internet
access amounted to 30%). What gained the market
was the fixed broadband (59.7%) and wireless
broadband (24,4%) (GUS, 2015, Bucki, 2014,
UKE, 2014). Moreover, both at the state level and
self-governmental level, public services, such as
administration, health, public finances, social
security etc,. become gradually more
computerised. It has been made possible to settle
official matters (entirely or partially) via the
Internet (eDeclarations, Electronic Services
Platform ZUS, the Electronic Public
Administration Services Platform - ePUAP,
Integrated Patient’s Guide – ZIP etc.). What is also
available is the electronic stationary equipment
designed for the applicant’s self-service. The web
pages of the government, self-governments and
other institutions get significantly enhanced so that
they are capable of playing a role of information
and communication centres for citizens.
Implementing new technological solutions is
entirely dependent on the suitable infrastructure.
The data presented above clearly indicate that the
Polish households as well as the state and self-
governmental structures are ready to make use of
common technological solutions.
What is related to the informatisation is another
important factor, namely the level of acceptance
of technology by the citizens, especially by
elderly people. 39.4% of people at the age between
55 and 64 and 20% of people at the age between
65 and 74 declare that they regularly use a
computer (in both groups growth by 12%
approximately as compared to the year 2010).
Furthermore, among retired people and other
professionally inactive people (but not among the
unemployed) this rate amounts to 32.4% (in this
group among other professional activity groups the
highest growth was observed between the year
2010 and 2014 - growth by 11.2%). Nearly 40% of
people at the age between 55 and 64 use the
Internet regularly (the highest growth by 14.1% as
compared to the year 2010) and nearly 20% of
people at the age between 65 and 74 declare such a
use. It is also worthwhile to note that in the group
of retired people and other professionally inactive
people 30% use the Internet regularly. In the
aforementioned age groups people most frequently
The Application of Pest Analysis to the Creation of the Profile of an IT Product Designed to Activate and Support
Senior Citizens in Poland
111

use the technology in question at home (GUS,
2015). The foregoing data indicates that the
Internet and computer are more and more accepted
and used in practice by the analysed population
between 55 and 74 years of age. People belonging
to this group already have skills necessary to use
the operating system, the Internet browser or the e-
mail. However, the fact that the majority of elderly
people still lack suitable digital competencies has a
substantial and negative impact on the
effectiveness of implementations of IT solutions
which support everyday consumption and
administrative matters.
As far as more advanced technologies are
concerned, cloud computing (e.g. virtual disks)
still remains not a very popular solution. The said
technology is used by 1.8% of people between 55
and 64 years of age and 0.9% of people between
65 and 74 years of age (it is used by 8.7% of
people as compared to the test sample).
Smartphones are used by 7% of people between 55
and 64 years of age and 3% of people between 65
and 74 years of age (generally 25.5% of users as
compared to the entire group of respondents). The
second popular advanced technology was the
Smart TV, which is a television set with integrated
Internet capabilities and advanced functions –14%
of the total number of respondents owned a Smart
TV in 2014 (GUS, 2015). These observations can
determine the selection of available
communication media which will respond to the
expectations of elderly people.
Another factor which is worthwhile to notice is
the condition of the telecommunication market
in Poland. Saturation with telecommunication
services on the individual customer market is high.
Only 3% of people who are 15 years old or more
use no such a service. These are the mobile phones
that are most often used –88% of respondents have
a mobile phone (in the group of people who are
older than 60 this rate amounts to 58% and among
pensioners and retirement pensioners it is 60%). A
fixed telephone line is connected in 23% of
households. Such telephones are much more
frequently used by people who are 60 years old or
more (48%) and by pensioners and retirement
pensioners (46%) (UKE, 2014). What should be
emphasised here is the fact that there exists a
gradual trend among elderly people towards
switching from fixed lines to mobile telephony.
This entails the cost reduction and other practical
implications (e.g. instant communication or the
ability to call for help). Furthermore, there
appeared a range of mobile devices which respond
to the expectations of elderly people. They are
equipped with suitable, clear displays, large fronts
and ergonomic buttons. Certainly, what should be
taken into account in every case while developing
electronic communication with elderly people are
the trends which exist on the telecommunication
market. A large selection of communication
channels and easiness in implementing new
solutions result in the fact that this factor does not
play a crucial role in the process of implementing
technological solutions dedicated to the social
group in question.
Technological development is determined by
another factor, namely by the choice of a method
of providing software dedicated to elderly people
and to the entities which provide services for this
group. What is gaining importance in Poland is the
software as a service delivery model (SaaS), which
is gradually replacing dedicated or boxed software.
According to the data provided by PMR, in the
year 2013 the value of the Polish market for cloud
services increased to 300 million PLN and more
than 60% of the market share was seized by the
online access to software, which is regarded as the
most prospective in the service market. Audytel,
which at the end of 2013 conducted a survey
among 50 biggest domestic companies, indicates
that 20% of the said companies already use the
SaaS model and 7% declared the intention to do so
(Marszałek, 2014). This model allows the
purchasers to use the software in a customized way
and to pay for the actual usage, which considerably
reduces the costs of purchase and maintenance of
the software. From the end-users’ point of view,
such solutions result in their easier adaptation to a
new service if this service uses popular software
available in this model (e.g. online shops based on
the same software). It is particularly important as
far as elderly people are concerned due to the fact
that their ability to adapt themselves quickly to
new solutions is limited. An informed and right
choice of a software provision method constitutes
in the majority of implementation cases a crucial
factor which proves to be decisive for the
successful implementation.
What is connected with the abovementioned
issue, is the easiness of software developing,
which results mostly from the application of the
generally accepted standards (e.g. data exchange in
XML format) and from the ability to integrate open
source applications, dedicated or boxed, with the
applications available in the SaaS model.
Furthermore, the aforementioned open source
software is absolutely free and it has open source
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code, what results in the fact that new solutions,
which integrate such applications with the most
popular productivity apps and Internet services, are
created very quickly. The vast majority of new
technologies improve the software development
process (e.g. due to the application of design
patterns or frameworks) but also for this reason the
aforementioned easiness in the context of
technological support of the activation of elderly
people cannot be regarded as a factor which has a
significant influence on the implementation
process.
What also constitutes an important factor is
keeping up with advances in technology among
both the software suppliers and its users. From the
suppliers’ point of view, this results from the
necessity to be competitive and to optimize their
activities through a higher level of efficiency and
functionality/safety. Users also expect novelties,
interface improvements aiming at better, more
ergonomic solutions, faster applications and a
higher level of safety. This mostly applies to
people with higher digital competencies, including
some of the elderly people, who are aware
computer and Internet users – therefore, this factor
is not decisive for the activation of elderly people
with the application of technological support.
The technological factors in the field of
activating elderly people significantly influence
both the shape of information and communication
processes dedicated to this social group and the
selection of suitable technologies according to the
level of digital competencies of senior citizens. In
other words, these factors determine a range of
characteristics of the IT product which is addressed
to this target group.
4 IT PRODUCT PROFILE
According to the marketing definition, every object
of the market exchange or anything offered to a
market is deemed to constitute a product.
Therefore, the notion of product shall not be
interpreted as referring exclusively to material
objects. Consequently, a product can be regarded
as a bundle of benefits offered to the purchaser in
order to satisfy their needs (Pindakiewicz, 1997).
A lot of contemporary products are a mixture of
material and non-material elements (Altkorn,
2000). This is particularly true of IT products. In
this sense, the IT product is composed of: a
specified software code compilation, the license to
use the software and a set of IT services connected
with its implementation and maintenance.
From the marketing perspective on the IT
product, it is possible to repeat after T. Levitta his
remarks on a specified structure of a product.
According to him, this structure is composed of
four layers similar to the rings which can be
observed in a tree cross section (Altkorn, 2000):
 generic product
 expected product
 augmented product
 potential product.
Below you will find the characteristics of the
particular structural elements of the IT product
dedicated to elderly people. Together they will
form the profile of such a product. The description
was created on the basis of the conducted PEST
Analysis, presented in this paper.
Generic product is a notion which specifies
what the purchaser really acquires. In the case of
the IT product, it is a particular compilation of its
code which is made available to the user in
different forms, i.e. in a form of a desktop
application or in a form of a service available via
an Internet browser. While bearing in mind the
results of PEST Analysis as presented above, what
seems reasonable in the case of the IT product
dedicated to elderly people is to offer the product
for the lowest possible price, if not to resign from
charging senior citizens at all. Such an approach is
recommendable due to the fact that senior citizens
constitute a relatively underprivileged group whose
expenses in most cases satisfy only their basic
needs. On the other hand, the existing possibilities
to obtain financing for the development of such
products from the UE domestic programmes also
facilitate such an approach. Nevertheless, what
should be taken into consideration is the fact that
because of the limited number of financing sources
and because of a high level of competition among
the beneficiaries, it might be difficult to obtain
financial support. In order to reduce the costs even
more, the IT product for senior citizens can be
offered as a service in the SaaS model. This will
eliminate the necessity to install software and
respond to the low level of digital competences
among senior citizens as confirmed by PEST
Analysis. At the same time the fact that the Internet
and computer equipment are common in the Polish
households also advocates such a solution. It is
essential for the product to be consistent with the
local legal regulations and to take into account the
rules on the settlement of transactions and the tax
treatment of transactions. Furthermore, it should be
The Application of Pest Analysis to the Creation of the Profile of an IT Product Designed to Activate and Support
Senior Citizens in Poland
113

oriented toward service offerings and entering into
transactions in a way which will enable senior
citizens to offer their own services and to
undertake employment in the form of a part-time
job with flexible working hours.
Furthermore, what should be taken into
consideration while making the decision to provide
senior citizens with the IT product via the Internet
is the immensity of offers which can be
encountered. From the consumes’ perspective, this
can result in the complexity of the decision
situation and in the difficulty in selecting a suitable
service provider. What can constitute an additional
barrier for elderly people is the complexity of a
web page where the offer is presented.
Furthermore, such pages are not prepared to be
used by elderly people, who for example, might
suffer from sight problems. Therefore, it seems
justified to equip the IT product dedicated to
elderly people with a plain interface, tailored to the
needs of elderly people. The web page designed
for senior citizens should be as simple as possible
and it should give the possibility to enlarge the text
or to use a voice-guided navigation. This will
allow to eliminate the factor which has the highest
negative influence, i.e. the age-related barriers in
IT perception. Furthermore, a web page dedicated
to senior citizens should be available mostly via a
computer because, as the presented research
shows, senior citizens relatively seldom use mobile
devices such a smartphones.
What constitutes another element of the
product structure is the expected product,
understood as any additional, useful feature related
to the generic product. In the case of the IT product
available via a browser, there exists no
implementation service which could constitute an
expected product but it seems justified to provide
senior citizens with the help-desk which will
perform a function of a direct, telephone support
for them. Thus, the help-desk, which will provide
both substantive and technological help, will play a
role of an expected product. It will allow to
overcome the senior citizens’ reluctance to new
solutions and to ensure a proper level of trust in the
product. The help-desk will provide senior citizens
with assistance and introductory training on the use
of the IT product and it will perform a function of
an intermediary in transactions between senior
citizens and service providers. This will allow to
ensure a proper credibility of service providers.
Ultimately, the role of the help-desk can be
broadened to include the support provided to
senior citizens in the negotiations with the service
providers and in the financial settlements. This will
allow to eliminate the lack of trust among elderly
people as well as the lack of skills necessary to
benefit from online transactions. This is consistent
with the marketing concept according to which the
content of the expected product is not constant but
it is highly dependent on the competitiveness of the
market which offers a given product.
It is important to observe here that the elements
which over time are perceived by the purchasers as
elements of the expected product are initially
elements of the augmented product. The
augmented product is understood as any
additional element of the product designed to
facilitate the consumption of a given item. While
analysing this structural aspect of the IT product
dedicated to elderly people, it should be noted that
many of them need a training or support before
they order a service via the Internet for the first
time so that they could overcome their fears related
to both the use of modern IT solutions and the lack
of trust in the service provider or the lack of
knowledge. This problem can be eliminated by the
help-desk; however, what can also be offered to
elderly people as a part of augmented product are
trainings which will be more product-detail
orientated or such trainings whose main purpose
will be to increase the general IT competencies
level among senior citizens.
The term potential product, on the other hand,
means everything which can make a product more
attractive and which can attract the recipient’s
attention in the future. In the field of IT, what can
be regarded as a potential product are its
development visions presented in the form of the
announcements of the new versions. The potential
product is composed of the elements of
inventiveness, imitation and adaptation ant its
shape depends on both the users themselves, who
suggest functional improvements and on the
producers, who are mostly in charge of the product
adjustment to the fast changing economic and legal
realities. What can constitute an example of a
potential product in the case of the IT product
dedicated to elderly people is its extension in the
form of the smartphone or smart TV applications
which will appear when their current users enter
the old age.
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5 CONCLUSIONS AND
RECOMMENDATIONS
This paper specifies the macro environmental
factors which should be taken into consideration
while creating a profile of the IT product dedicated
to senior citizens.
On the basis of PEST Analysis, the Authors
observed that what has the strongest positive
influence on such a product is a high level of
informatisation in Poland. Due to the existence of a
developed infrastructure and due to the falling
costs of its use, elderly people have a better access
to modern IT products and to the Internet.
Furthermore, it should be pointed out that both the
domestic and European policies support initiatives
dedicated to the analysed social group by
providing the source of financing. Thus, IT
companies have a possibility to provide senior
citizens with a free access to their products and
services. At the same time, the SaaS model is
gaining importance as a form of software delivery.
At the same time negative influences of several
factors of the analysed environment were
observed. While creating the profile of the IT
product dedicated to elderly people one should
take into consideration biological, psychological,
social and legal barriers which constitute an
obstacle for the users in question. Therefore, it is
important to create suitable IT products which will
respond to the needs and perception of elderly
people and to undertake measures designed to
educate them in this field. This will allow senior
citizens to benefit from their intellectual capital,
experiences and skills. Furthermore, this will help
to eliminate the generation gap as well as the
digital exclusion of elderly people.
Further research will concentrate around an
issue of a strategic analysis of the environment and
they will be designed to elaborate elderly people
activation scenarios with the usage of IT tools.
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Senior Citizens in Poland
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