The document provides details about a business called ElectroWise that has developed a household electricity control system called the ElectroWise. The system connects to power plugs throughout a home and uses sensors to detect occupancy and automatically control selected plugs to reduce wasted electricity. The document outlines ElectroWise's vision, industry analysis, customer needs, product details, suppliers, broad market low-cost strategy, and marketing and sales processes.
The document provides details about a business called ElectroWise that has developed a household electricity control system called the ElectroWise. The system connects to power plugs throughout a home and uses sensors to detect occupancy and automatically control selected plugs to reduce wasted electricity. The document outlines ElectroWise's vision, industry analysis, customer needs, product details, suppliers, broad market low-cost strategy, and marketing and sales processes.
The document provides details about a business called ElectroWise that has developed a household electricity control system called the ElectroWise. The system connects to power plugs throughout a home and uses sensors to detect occupancy and automatically control selected plugs to reduce wasted electricity. The document outlines ElectroWise's vision, industry analysis, customer needs, product details, suppliers, broad market low-cost strategy, and marketing and sales processes.
The document provides details about a business called ElectroWise that has developed a household electricity control system called the ElectroWise. The system connects to power plugs throughout a home and uses sensors to detect occupancy and automatically control selected plugs to reduce wasted electricity. The document outlines ElectroWise's vision, industry analysis, customer needs, product details, suppliers, broad market low-cost strategy, and marketing and sales processes.
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INFOSYS.110 BUSINESS SYSTEMS:
DELIVERABLE 2: BUSINESS SECTION 2014
Name Vera Clarkson NetID vcla436 Group Number: 110 Website Link: http://infosys1102014s1group110.blogspot.co.nz/ Tutorial Details Tutor: Day: Time: Kit-Wah Huang Monday 9-10am Time Spent on Assignment: 30 hours Word Count: 1644
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2 ELECTROWISE INTRODUCTION Wasted electricity in households is a worldwide issue and many people dont realise how much it is costing them, as well as our environment. In all households, a significant amount of electricity is wasted due to people leaving their appliances on when they are not using them. Additionally, just leaving appliances on stand- by or plugged in uses up a significant amount of electricity over time. Although this wasted electricity may seem insignificant, they can be extremely costly in the long run. According to Ministry for the Environment (2011), New Zealanders waste over $100 million a year by leaving appliances on stand-by. Wasted electricity also results in thousands of tonnes of pollution being emmitted into the environment each year. To minimise the wasted electricity in households, our company has invented the Electrowise. This device is a control system that can be installed households to control and monitor the electricity consumption throughout the house. 3. BUSINESS SECTION 3.1 Vision To provide households with an easy and affordable way to contribute to saving out planet, and inspire people to become more aware of the importance of saving electricity. 3.2 Industry Analysis: Household energy-saving device industry Industry: Household energy-saving devices Industry. Includes devices that focuses on saving electricity in households, such as solar-powered chargers, energy-saving lightbulbs, household heating controls, household electricity controls, etc. Force: High/Low: Justification:
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3 Buyer power: High Buyers have many choices because there are so many different products in the industry, and there are many sellers that the buyer can purchase them from. Efergy (n.d.) is one example of the many sellers within the industry, offering a wide range of energy-saving devices. Supplier power: High The most important supply for companies in this industry is the electrical tools needed to manufacture their products. There are many suppliers that firms can purchase these from. Ebay (n.d) for example has many different sellers of electrical tools, ranging from cheap, low-quality tools to more expensive, high-quality tools. Threat of new entrants: High Some of the products in this industry are not too costly and require very few and raw materials. E.g. energy-saving lightbulbs are inexpensive to produce (lights-out saves energy, 2010). This makes it easy for people to enter the industry. Threat of substitutes: High There are many other ways to save electricity instead of using energy-saving devices, such as switching appliances off at the wall, using hot water more wisely, and insulating your home. (Consumer.NZ, n.d.). Rivalry among existing competitors: Low There are many firms in the industry, however rivalry is low because they all sell different products with different features and functions. E.g. there is very little competition between firms selling solar-powered chargers and firms selling energy-saving lightbulbs. Therefore the firms arent in direct competition.
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4 Overall attractiveness of the industry: Overall, the industry is not very attractive. Buyers have a lot of power, and there are many firms already in the industry. This makes it hard for any firm in the industry to gain a decent proportion of market share. 3.3 Customers and Thei r Needs Our customers are all NZ homeowners. We understand that homeowners can be very busy with work, parenting, and other commitments. Many homeowners therefore dont have the time to unplug appliances around the house every night to save electricity. Homeowners also have many bills and expenses which they would like to minimise. One of the biggest motivators homeowners have for conserving electricity in their homes is the accumulated savings in their energy bills at the end of the year (Beth Asaff, n.d.). 3.4 The Product and Service The ElectroWise is a simple and easy-to-use system that enables homeowners to have full control of the electricity consumption in their house. It is connected to all the power plugs throughout the household, and the sensors that we have installed in each of the rooms. These sensors detect whether someone is in the room or not, and switches the power on and off to selected power plugs in the room accordingly. To select the specific power plugs to automatically control, the user can use the touch screen tablet-like device. This touch screen device is the primary controller of the ElectroWise system. One of its main features is that it can display a map of the house and the locations of all the individual power plugs. The user can then use this to look around the house and select a specific power plug to automatically control. They can also use this feature to see how much electricity a specific power plug is consuming and monitor it over time. Thus, our product provides a easy and convenient way to save electricity in households. It allows household owners to save time while still being able to save thousands of dollars on their power bills.
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5 3.5 Suppliers and Partners One of our companys major partners is the EECA. They are an entity that is set up by the NZ government to encourage and support energy conservation in our country (ECCA, 2014). .As partners, we work together in achieving our goals. They help us by helping promote our ElectroWise product through their EnergyWise programme, and we help them by supporting homeowners to save electricity . We have also partnered with Deloitte in NZ. Over the last few years, Deloitte has been working towards becoming a true environmentally sustainable business (Carbon Reduction, n.d.). We have now formed an alliance with them their consulting team are providing us with advice and support to grow our company, in return for providing the ElectroWise system in their local offices. Our main raw material of the ElectroWise is the tablet-like touchscreen devices. We purchase these from focalprice.com as they are an affordable and very reliable supplier offering free shipping, 30 days money back guarantee, and a gauranteed safe shopping experience (Focalprice.com, n.d.). We also require the tools that our technicians use in installing the product in homes, such as wiring, pliers, and safety equipment. We purchase these from Toolware, NZs largest suplier of quality trade tools (ToolWare, n.d.). 3.6 Strategy: broad market low cost Our product is aimed to target a wide range of NZ households, from small to large. We believe that every family can help contribute towards saving our planet by using our product. Therefore we have a broad market competitive scope. Our goal is to encourage everybody to start saving electricity, so we need to make the product affordable so households of all different income levels can purchase it. Therefore we have adopted a low cost strategy. The overall strategy is therefore broad market low cost.
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6 3.7 Value Chain Activity: Marketing and selling the product The most important value chain activity for this business is marketing and selling the product. Marketing and selling the product is an important aspect of growing our business. As we are just a newly formed business and not many people know about us, we have to put a stong focus on our marketing activities. We hope that this will help us to achieve our long term goal to encourage people to use our product to save electricity and contribute to saving the planet, and inspire people to become more aware of the importance of saving electricity. 3.8 Business Processes 3.8.1. ADVERTISING CAMPAI GN PLANNING PROCESS To successfully create awareness of our new product and boost sales, we follow our advertising campaign planning process. As we are just a newly formed company, this is an important process of our business.
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7 Start Research customers and market Set advertising goals Choose a advertising venue (e.g. TV, newspaper, etc) Create advertisement Place the ad End Marketing Department Marketing analysis system Evaluate ad Determine advertising budget
3.8.2. SALES PROCESS This is the process our company follows to successfully complete a sale. To ensure maximum customer satisfaction, we need to make this process as simple and carefree for the customer as possible. This process is important to the business
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8 because we need to make successful sales and keep customers happy in order to gain a good reputation and grow our business. Start Receive customer order through call or website Our local technician visits/examines the customers house and gives customer a quote Technician goes to customers house and installs the product Total cost of installation/product is determined back at the office and invoice is sent to customer Payment is received End Retrieve and store customer details Sales Processing System Sales department
3.9 Functionalities 3.9.1. ADVERTISING CAMPAI GN PLANNING PROCESS Research customers and market
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9 Determine advertising budget 3.9.2. SALES PROCESS Receive customer order though call or website Retrieve and store customer details 3.10 Systems
3.10. 1. MARKETING ANALYSIS SYSTEM System that allows our company to analyse customers and the market. It helps us answer questions such as: What is the best way to target homeowners and convice them of the importance of saving electricity? And how profitable will advertising be? 3.10. 2. SALES PROCESSING SYSTEM System that receives and stores all information about sales and our customers. This system is important because for our company to achieve its goal of contibuting towards saving the planet, we must know how our sales are going, and who our customers are. 3.10. 3. FINANCING MANAGEMENT SYSTEM Takes information from financial statements and uses it to determine what would be the best way to spend our money in order to achieve our goal of supporting households to save electricity. This proccess is important because our business must be financially stable in order to succeed.
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10 3.11. Summary Table: Value Chain to Systems
Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s)
Make the product 1. Advertising campaign planning process 1. Research customers and market
2. Determine advertising budget Marketing analysis system
Financing management system Decision Support System
Decision Support System 2. Sales process 1. Receive customer order through call or website
2. Retrieve and store customer details Sales processing system
Sales processing system Transaction processing system
Transaction processing system
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11 CONCLUSION In conclusion, wasted electricity in households is a worldwide issue that is being faced, however has not yet fully been addressed. It is costing New Zealanders $100 million each year, and costing the environment thousands of tonnes of pollution. Our company has come up with an IT solution that addresses this issue, called the ElectroWise, which aims to provide households with an easy and affordable way to contribute to saving out planet. We believe our company will be successful because our solution is unique and effective, and focuses on targeting our customers needs. REFERENCES
1. Ministry for the Environment. (2011). What ETS means for householders and individuals. Retrieved from https://www.climatechange.govt.nz/emissions-trading- scheme/about/what-it-means-for-me/households.html.
2. Efergy (n.d.) energy saving products products. Retrieved from http://efergy.com/nz/products/energy-saving-products
3. Financial web (n.d). Finweb.com recent articles: saving. Retrieved from http://www.finweb.com/financial-planning/3-useful-electricity-saving- devices.html#axzz32hEQl6ap.
4. Lights-out saves energy: fact or fiction? (2010). Retrieved from http://www.examiner.com/article/lights-out-saves-energy-fact-or-fiction
5. Ebay (n.d.) . Electrical tools for sale | Ebay. Retrieved from http://www.ebay.com/sch/i.html?_trksid=p2050601.m570.l1313.TR5.TRC1.A0.H0.Xe lectrical+tools&_nkw=electrical+tools&_sacat=0&_from=R40
6. Consumer.NZ (n.d.). Consumer powerswitch Saving energy. Retrieved from https://www.powerswitch.org.nz/powerswitch/site-info/saving-energy
7. Beth Asaff (n.d.). Understanding the importance of conserving electricity. Retrieved from http://greenliving.lovetoknow.com/why-is-it-important-conserve-electricity
8. ECCA (2014). What we do | Energy Efficiency and Coneservation Authority. Retrieved from http://www.eeca.govt.nz/about-eeca/what-we-do
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9. Carbon Reduction (n.d.). Deloitte demonstrates commitment to embed sustainability with a focus on reducing emissions. Retrieved from http://www.carbonzero.co.nz/why/documents/Deloitte%20LLP%20CEMARS%20case %20study.pdf
10. Focalprice.com (n.d.). Retrieved from http://www.focalprice.com/
Ingleside Reviews’ Ultimate Guide to Electronics & Gadgets: Making Smart, Cost-Effective Choices: Ingleside Reviews’ Comprehensive Lifestyle Library: Your Ultimate Resource for Modern Living., #1