Bus-Chat proposes installing GPS and cameras on buses to provide real-time location and traffic information to passengers via a smartphone app. This will help passengers better estimate bus arrival times and avoid wasted time waiting. The proposal outlines the business vision, industry analysis, customer needs, product/service description, suppliers/partners, cost leadership strategy, and key business processes and systems that the service would require.
Bus-Chat proposes installing GPS and cameras on buses to provide real-time location and traffic information to passengers via a smartphone app. This will help passengers better estimate bus arrival times and avoid wasted time waiting. The proposal outlines the business vision, industry analysis, customer needs, product/service description, suppliers/partners, cost leadership strategy, and key business processes and systems that the service would require.
Bus-Chat proposes installing GPS and cameras on buses to provide real-time location and traffic information to passengers via a smartphone app. This will help passengers better estimate bus arrival times and avoid wasted time waiting. The proposal outlines the business vision, industry analysis, customer needs, product/service description, suppliers/partners, cost leadership strategy, and key business processes and systems that the service would require.
Bus-Chat proposes installing GPS and cameras on buses to provide real-time location and traffic information to passengers via a smartphone app. This will help passengers better estimate bus arrival times and avoid wasted time waiting. The proposal outlines the business vision, industry analysis, customer needs, product/service description, suppliers/partners, cost leadership strategy, and key business processes and systems that the service would require.
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INFOSYS.110 BUSINESS SYSTEMS:
DELIVERABLE 2: BUSINESS SECTION 2014
Name Samuel Brothers NetID Sbro472 Group Number: 097 Website Link: http://infosys110group97.blogspot.co.nz/ Tutorial Details Tutor: Day: Time: Nicholl Tuesday 11am Time Spent on Assignment: 14 hours Word Count: 1642
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2 BUS-CHAT INTRODUCTION Anyone who frequents public transport understands the struggle of waiting on an unreliable bus services. This is exemplified in the display screens for the bus arrival that are rarely correct. Several factors, namely traffic, accidents, and human error, compound this problem. That is why we believe offering a service which will both show where a bus is and what the bus can see will mean people can allocate more time appropriately for their transit times. 3. BUSINESS SECTION 3.1 Vision Bus-chats vision is to install on all buses both a GPS device and a small camera which will relay information on demand back to a user who is using the smartphone application. In this way, the user can assess how far the bus actually is away from their stop, and respond accordingly. For regular travellers, this means that local knowledge of landmarks will suggest the bus is in all reality going to be stuck in the traffic for however much longer. 3.2 Industry Analysis: Public transport Industry: Public tranport industry. Specifically, improving customer satisfaction in this industry as brand image and customer trust are at an all time low. Force: High/Low: Justification: Buyer power: Low Buyer power is notably low as there are few alternatives for most commuters. Ferries and train services do fleetingly exist, but they do not have the infrastructure nor the capacity for the 1.2m trips that Aucklanders take every year in to and out of the CBD. This is why it is so vital to
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3 improve the bus service before to promote people still using this difficult and dated system. (Matthew Dearnaley, 2007) Supplier power: High Buses take time and are costly to manufacture. There is a limited market in NZ by virtue of the fact there are only several big citites and suppliers have to ship parts around the world to reach our shores. For this reason, Auckland Transport (AT) has little bargaining power in the purchase of them. (Matthew Dearnaley, 2006) Threat of new entrants: Low There is little threat of the bus system being overthrown, it would be too costly. Once a bus is fitted with all the right equipment for Bus-Chat, the chances of a new company coming in to try and poach the business is slim because it would require a whole new system to be put in place. Once a company is secured as a customer, they would not want to endure the hassle of changing. (ARTA, 2009) Threat of substitutes: Low Substitutes exist for bus systems but they are underdeveloped and too infrequent to be a viable option for most people. This, once again, is why time and effort should be focussed on augmenting the current system to be the best it can be until a substitue can become a compliment. (NZ Herald, 2010).
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4 Rivalry among existing competitors: Low By virtue of the fact that they are all under the same parent organisation, there is no real rivalry as each system is designed to address its own issues.(ARTA, 2009). Overall attractiveness of the industry: 3.3 Customers and Thei r Needs At present, customers have little to no alternative. These customers are people who catch public transport out of convience and price or out of necessity. Public transport in Auckland at the moment is a benign monopoly. Customer needs are, with valid conviction, a desire to catch a bus when it says it will be there and to arrive to their engagements at a suitable time. These needs are important society as a whole because it is direct reflection on government ability to cater for the needs of the populous. 3.4 The Product and Service In short; if a customer can reliably establish where their bus is, in relation to how much traffic there is on the road and physically how far away it is from their stop, they can formulate an estimation of their own accord as to the time delay they face. This, of course, can be cross checked with ATs evaluation of the route; nevertheless this is unreliable. This will put the customer in an informed position where the onus can fall not on AT, but on self- judgement. In this way, regular travellers will make educated decisions on when to leave the house to catch their bus and will not have to waste precious minutes waiting for a late service. 3.5 Suppliers and Partners Suppliers for our vision will need to include, but are not limited to, a telecommunication provider as well as a camera supplier. The telecommunication service will need to be prepared to receive requests for data and then in turn reply with GPS locations. This task is relatively simple as this is now a standard procedure for all mobile electronics. The camera provider will too need to be integrated so that when a request for information is sent, the
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5 camera will take a quick snapshot of where the bus lies in traffic, which will be included in the packet of data sent back to the requestor. This is not dissimiliar to services such as Viber, where locations and photos are sent instantaneously .
Partners would need to include AT in order to equip the buses, as well as the NZ government in order to establish pricing/availability of these services. Because the telecommunication services have been put in check for extortion before, it would be necessary to ensure this did not happen to resume viability of the idea. 3.6 Strategy: Cost Leadership Public transport, namely bus systems, are made available to a broad market. In comparison to other modes of transport, the overall cost is a fraction of what it costs for the operation to run. Analagous to Porters Generic Strategies, this therefore leads us to announce it as cost leadership. Coupled with the fact that the main intention of Bus-Chat, the information system, is to help people and augment brand perception, it becomes evident that this was never planned to be a high-profit venture. The scope is aimed at angry bus passengers and the cost strategy will be subsidised by the fact that once more people fall in sway with buses, it will attract more customers. The overall strategy is therefore Cost Leadership. 3.7 Value Chain Activity: Outbound logisitics The most important value chain activity for this business is outbound logisitics. Outbound logistics are the most vital part of this operation because the request sent to this bus is seeking information to be captured and processed back to the user so they can form their own opinion on it. It is the fundamentla underpinning of Bus-Chat because the outbound data has previously been skewered by factors that affect the bus after that data is sent. 3.8 Business Processes
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6 3.8.1. PRE-EMPTIVE CUSTOMER SUPPORT PROCESS - This is an industry-specific customer support system that tries to dissipate the need for customer support by making the entire process easier and less of a hassle. By giving the customer tools to avoid the wait, there is lessened likelihood that there will be complaints and so in this way AT can avoid costs in this department by investing in these preventative measures.
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3.8.2. OPERATI ONS MANAGEMENT PROCESS AT can minimise costs and gain a competitive edge by streamlining their processes with Bus-Chat. They will have a more succint idea of where the buses are, what Auckland traffic is like at what times, and how efficiently the service runs as a whole.
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8 3.9 Functionalities 3.9.1. PRE-EMPTIVE CUSTOMER SUPPORT PROCESS Instantaneous telecommunication services to relay information. GPS locators to assess which bus service is the closest to the customer. 3.9.2. OPERATI ONS MANAGEMENT PROCESS Data feedback from both bus communication systems (GPS/camera) and drivers themselves. Headquarters to monitor and log data about the transit times so it can be turned into useful information. 3.10 Systems
3.10. 1. CUSTOMER SATI SFYING SYSTEM By putting the power of decision into the customers hands, the regular travellers will be able to make better decisions about where and when to leave for the bus and to eliminate time spent wasted while the bus is caught in traffic. 3.10. 2. OPERATIONS MANAGEMENT SYSTEM The logistics headquarters at AT will be able to assess and analyse the information provided by Bus-Chat and will eventually be able to compile these trends to provide better information on the bus boards for those who rely on them/do not have Bus-Chat. Customer satisfaction will rise in both respects as AT gets the display more accurate. 3.10. 3. DRI VER ACCOUNTABILI TY SYSTEM Bus drivers can be held accountable for their actions and work times because it will be possible to track and measure how effective and or safe their driving is. In this way, Auckland roads will become safer and more efficient due to a cohesive monitoring and managing of the drivers on the roads by the AT headquarters.
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9 3.11. Summary Table: Value Chain to Systems
Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s)
Bavarian bergkase fromage queso 1. Pre-emptive Customer Support process
1. Instant information from the cellular provider about the buss situation 2. Cameras an GPS to assess the buss situation themselves. Camera request systems
Smartphone application systems Information transmission systems
Global positioning systems 2. Operations Management process 1. Data feedback from bus systems as well as drivers
2. Headquarters to compile and analyse data Suburb demographic systems
Traffic density systems Information storage systems
Data analysis systems
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10 CONCLUSION Bus-Chat is going to become an immensely useful feature to frequent travellers who prefer to have the power of estimation in the own hands. By giving them the information they need to make informed decisions, there will be no bad taste towards the bus boards with their incorrect information. Indeed, these boards will be improved by AT themselves when they too pay attention to the trends observable only by Bus-Chat. This is why this system will make public transport in Auckland a reliable and valued process again.
REFERENCES
1. Mathew Dearnaley. (Oct, 2006). "Auckland buses - fewer fares but longer journeys". The New Zealand Herald. p. A15. http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10405339
2. AP. (Feb, 2011). Nine millionth rail passenger arrives at Britomart". The New Zealand Herald, p.A21. http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10691825
3. ARTA. (March, 2009). Auckland Transport Challenges. From the Draft 2009/10- 2011/12 Auckland Regional Land Transport Programme, Page 8. http://theplan.theaucklandplan.govt.nz/aucklands-transport/
4. Mathew Dearnaley. (June, 2007). "City bus users get new fleet of green machines". The New Zealand Herald. Retrieved from http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10447864