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INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS SECTION2014

Name Arthur GilliesNetID agil867Group Number: 253Website Link: http://infosys110group253.blogspot.co.nz/

Tutorial DetailsTutor: Day: Time:Kirsten Thursday 9am

Time Spent on Assignment: 13 hours Word Count: 1629

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A SOLUTION TO CONGESTIONINTRODUCTION

The CommuterPro incentivises cycling as a solution to Auckland’s congestion, through

recording cycle stats on a government database and monitoring the distance travelled by

each individual. Rewards include subsidised rates, student loan deductions or discounts for

government run operations. By providing rewards for regular cycling, we aim to reduce the

number of vehicles on Auckland’s roads, creating a less congested and healthier city

environment.

3. BUSINESS SECTION

3.1 Vision

To establish a less congested society, in which environmentally-oriented projects help both

convenience and health in cities around the world.

3.2 Industry Analysis: Public Cycling Industry

Public Cycling Industry. Entering an industry where we will rely on governmental

investment in the aim to sell in the interests of society at large.

Force: High/Low: Justification:

Buyer power: High Having the government determine the success of

state controlled societal projects, the

CommuterPro is very much a dependent product.

The NZ Transport Agency works with

‘stakeholders to deliver safe and optimum

transport solutions’ (NZTA, n.d.), with a particular

focus on ferry, bus and train services. By having

numerous alternatives to the Commuterpro, the

government’s buyer power is thus immensely

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powerful.

Supplier power: High Though the industry for GPS and cycling

componentry is fairly saturated, because of the

technicalilties required for the success of the

CommuterPro, supplier power is high.

Specifically, Cateye has ‘leading technology’

(Cateye, n.d.) in the cycle computer business,

while Navman offer ‘some of the best GPS

navigation systems’ (Navman, n.d.) in the world.

Threat of new entrants: Low This is low because the CommuterPro is the first

of its kind. We aspire to achieve a ‘government-

granted monopoly’ in which the ‘government

grants exclusive privelege’ (Princeton, n.d.) to the

sale of this specific good. By being the pioneer of

the industry somewhat, and through gaining this

monopoly of sorts, threat of entry is lowered.

Threat of substitutes: High Auckland has ‘frequent ferry services’, an

‘extensive suburban rail network’ and buses are

considered ‘the most convenient’ (Bug Pacific,

n.d.) public transport option. Considering these

systems are fairly entrenched, commuters could

be likely to settle for one of these potential

substitutes.

Rivalry among existing

competitors:

Low Bike hiring services are prevalent throughout New

Zealand. Nextbike for example, works hard to

‘link a bike hire network to other sorts of public

transport’ (Nextbike, n.d.), however bike rentals 3

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are not a direct threat to the CommuterPro. Our

product differentiates itself from such comptetion

in that it is the first of its kind.

Overall attractiveness of the industry: Though there are alternatives to cycling, the

CommuterPro is the first of its kind so could experience some degree of success. However,

this success is dependent on governmental investment.

3.3 Customers and Their Needs

The government is the key customer for the CommuterPro. A governmental focus is

transport, and the congestion of Auckland. Auckland is the world’s 15 th most congested city,

with citizens spending 47 minutes of every hour driven stuck in traffic (Tan, 2013). In the last

3 years, $890m was invested in public transport (Tan, 2013), so there is eveidently a

need/desire to improve the existent congestion problem.

3.4 The Product and Service

The CommuterPro incentivises cycling through its rate reward system. The aim is to have

people invest in the product which, with the help of Navman and Cateye, will have extensive

speed and cadence detection as well as GPS technology to detect commuters’ use of their

bicycles. The further one rides, the more rate or student loan deductions they get, hence

encouraging people to get on their bikes. With more bikes and fewer cars, the

CommuterPro will be aiding the governments needs with regards to reducing city-wide

congestion.

3.5 Suppliers and Partners

Navman (Supplier) – provide ‘easy-to-use’ GPS tracking and monitoring systems (Navman,

n.d.). By using Navman’s GPS systems, government officials will be able to monitor the

routes taken and distances travelled by CommuterPro users.

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Cateye (Supplier) – the supposed ‘apex of reliable cycling technology’ while providing

‘budget friendly’ options (Cateye, n.d.). Cateye will provide cadence and speed detection

allowing government officials to ensure commuters are using the systems correctly.

Government and Councils (Partnerships) – the government/council are key partners in the

operation, as they essentially determine the success of the CommuterPro. While the

government will be a partner in the collaboration process, they also are the key customer to

the business.

3.6 Strategy: Cost Leadership

While at first it may be difficult to appeal to a broad market (as with Cost Leadership)

considering commuter cycling is not overly utilised as a current form of transport in

Auckland, over time the benefits that come with the system will likely appeal to a wider

market.

Focused Low Cost strategy may need to be implicated orignially in order to gain a foothold

in the market. Appealing to cyclists in the embryo stages of the system’s development will

gain a following, and growth will be anticipated from there. The CommuterPro is a low cost

product for the consumer, despite its advanced information systems.

The overall strategy is therefore Cost Leadership

3.7 Value Chain Activity: Procurement

The most important value chain activity for this business is procurement.

Assuring quality componentry is key to assuring a quality, functioning product. In the

process of procurement, it is important that we select environmentally friendly suppliers to

align with our vision, whilst also assuring a quality product is made from the best materials,

to reassure customers, that the CommuterPro is the way of the furute for reducing

congestion. Without quality products, the system will likely suffer as a result, making our

aspirations for reaching a broad market unattainable.

3.8 Business Processes

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3.8.1. ORDER MANAGEMENT PROCRESS – Delivering a quick and easy ordering service is

important to any business. The process begins with sufficiently stocking inventory levels,

assuring ample storage of products is provided to meet market demand. This prepares the

system for the receiving of orders from customers. At this point in the process, we must

assure we have sufficient product in stock to carry out the order. If not, we contact the

warehouse manager, who will promptly restock inventory to the required levels. Once

assured product levels are able to meet the demand of the order, the go ahead is given to

the warehouse manager to package the order, and subsequently load the order ready for

trasnportation. The order is then tracked on a tracking system that will be in place, so

customers know the whereabouts of their order. Once the order is received, we will confirm

as to whether they have received the correct goods, in the right quantity, and at the desired

level of quality. If needed we will remake orders to ensure customer satisfaction.

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3.8.2. MANUFACTURING PROCESS – This begins with the ordering of quality raw materials

required for product production. An order is sent to the suppliers materials, and the invoice

will be payed promptly by our accounting department to assure a coopreative business

enviroment. Once payment is made, the collection or delivery of materials is undertaken,

before storing them in their suitable location, ready for manufacture. Before starting the

actual manufacture, it must first be confirmed that ample stock exists. If not, more materials

must be ordered; if so, then production begins. Once the products are made, factory

managers will inspect the products to assure they are of sufficient quality for the consumer.

If not, reject products will be dismantled or discarded, while acceptable products will be

stored in a warehouse.

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3.9 Functionalities

3.9.1. ORDER MANAGEMENT PROCESS

Prepare customer orders Deliver orders

3.9.2. THE MANUFACTURING PROCESS

Order quality componentry Check product quality

3.10 Systems

3.10.1. INVENTORY MANAGEMENT SYSTEM – Inventory management is key to assuring the

right products are packaged in full, on time and in specification. For both the manufacturing

and order management processes, assuring the right materials or products are being used is

vital to attaining what the customer wants.

3.10.2. ORDER PROCESSING SYSTEM – Simarly processing each order correctly is important to

assure the customer is content with the service provided. In this system it is important to

receive the order, pass the order onto inventory management, charge the customer and

receive product payment.

3.10.3. QUALITY CONTROL SYSTEM – Ensuring quality along the production line is important

to reduce wastage, and hence the carbon footprint of the company. While quality control

systems assure the customer is receiving quality products, remaining environmentally

streamlined is important for the reputation of the business, and putting into practice the

company’s vision.

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3.11. Summary Table: Value Chain to Systems

Value Chain Activity

Processes Functionalities Specific Information System(s)

Broad Information System(s)

Procuremen

t

1. Order management process

1. Prepare customer orders

2. Deliver orders

Inventory management system

Order processing system

Supply Chain Management

2. Manufacturing

process

1. Order quality materials

2. Check product quality

Inventory management system

Quality control system

Supply Chain Management

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CONCLUSION

So while the CommuterPro faces difficulties regarding industry saturation and a restricted

customer base, there is still a place for it in the market. It provides an environmentally

sustainable solution to congestion issues, which the New Zealand government has pondered

for years. While the CommuterPro will decongest Auckland’s roads, it will also assure a

healthier lifestyle for those who utilise it to its intended purpose. Information technology is

key to assuring its functionality as a whole, as without the intricate, technical systems that

provide the government with relevant data to its system, the rewards intended for users

would not be able to be allocated accurately.

REFERENCES

1. Bug Pacific. (n.d.). Auckland: Local Transport. Retrieved from http://www.bugpacific.com/auckland/ga.html

2. Cateye. (n.d.). Cateye Products. Retrieved from http://www.cateye.com/en/products/

3. Navman. (n.d.). About Navman. Received from http://www.navman.co.nz

4. New Zealand Transport Agency. (n.d.). Planning and investing for outcomes. Retrieved from http://www.nzta.govt.nz/planning/index.html

5. Princeton University. (n.d.). Government-granted monopoly. Retrieved from http://www.princeton.edu/~achaney/tmve/wiki100k/docs/Government-granted_monopoly.html

6. Tan, Lincoln (2013). Auckland traffic jams create City of Snails. Retrieved from http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11152630

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