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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Benjamin Huang
NetID bhua643
Group Number: 410
Website Link: http://infosys1102014fcgroup410.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Nicholl Friday 11am
Time Spent on
Assignment:
20 hours Word Count: 1644

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INDUSTRY AND SYSTEM ANALYSIS
INTRODUCTION
Technology is constantly changing, farmers method of irrigation and knowledge in
horticulture are not up to date. Due to the lack of knowledge and the inefficient use of
resources the environment is impacted heavily through pollution and threating wildlife
(United States Environmental protection agency, 2010).
Thus a solution is needed, and this solution is to have a computerised machine with pipes
laid out underground across the whole crop field and sensors to detect moisture level, PH
level and the crops health. The machine will automatically deliver the adjusted fertiliser,
pesticide and water to each area of the crop field to efficiently care for the crops resulting in
the maximum yield of a crop harvest (not accounting for unforeseeable disasters).
Overall this solution will automatically care for the crops without the farmers input and will
only alert the farmer if there are any problems to be addressed.
3. BUSINESS SECTION
3.1 Vision
Consistently provide quality innovative solutions towards improving and sustaining
horticulture for the future generation.
3.2 Industry Analysis: horticulture irrigation industry
Industry: horticulture irrigation industry. Farmers around the world, especially crop
growing farmers such as wheat and rice in Australia, America and Russia.
Force: High/Low: Justification:
Buyer power: High There are many companies offering irrigation
systems around the world. Buyers/farmers have
many options of whom to buy from.

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Supplier power: Low Components (hose, valve, sprinkler, sensors) can
be easily sourced from different companies, while
the main system will be programmed/designed in
house. Thus suppliers have low power over us as
we can just switch to a different supplier
(Research and Markets, March 2013 and
Elizabeth Bechdol, Allan Gray, and Brent Gloy,
n.d.).

Threat of new entrants: High It is very easy to enter into the horticulture
irrigation industry as there are low barriers to
entry and component can be easily sourced
(Research and Markets. March 2013).
Threat of substitutes: Low There are no substitutes in watering crops, thus
substitutes to the horticulture irrigation industry
would be very low.
Rivalry among existing
competitors:
High As there are no substitutes towards the
horticulture irrigation industry, with high buyer
power and low supply power, rivalry is fierce as
thre are little barriers to stop competitors
entering the market (Research and Markets
March 2013 and Elizabeth Bechdol et al. n.d.).
Overall attractiveness of the industry: The industry is not a lucrative one yet not an
unattractive one. The 5 forces are pretty much balanced out, however the industry is not
lucrative and one can assume that a firm will not enter the market selling the same or

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similar irrigation system as the market can easily be saturated with firms diluting ones
market share and profitability.
3.3 Customers and Thei r Needs
One of our major customers would be farmers, they need our innovative solution to
efficiently irrigate and care for their crops. Some farmers need the knowledge in providing
the optimal dosage of fertiliser, water and pesticide however it is very hard to know from
human judgement and takes a lot of time to research and decide which fertiliser is the best.
The government is a potential customer, problems addressed by society and the
government and pollution, scarcity of resources and the increasing demand for staples such
as rice and wheat. One major problem is that food production is not fast enough to keep up
with population demand. (H. Charles J. Godfray, John R. Beddington, Ian R. Crute, Lawrence
Haddad, David Lawrence, James F. Muir, Jules Pretty, Sherman Robinson, Sandy M.
Thomas, and Camilla Toulmin, January 28 2010).
3.4 The Product and Service
Our solution meets the needs of the farmers, applying the correct fertiliser, water, and
pesticide. This gives farmers more time to tend their farm/field rather than researching.
Farmers benefit from our solution by reducing cost (no waste of fertiliser, pesticide and
water) and increase productivity as they can spend their extra resources (time and money)
on other things.
Our solution can also solve the governments needs and concerns. If the government
subsidies our solution all farmers will be able to afford it thus preventing pollution (leaching
of chemicals into underground water supply, lakes and other waterways which will destroy
biodiversity in ponds and rivers), increasing maximum harvest through correct and optimal
dosage of chemicals and water and helping with the governments water conservation act
such as the Sustainable Water Programme of Action in New Zealand (Ministry for the
Environment and the Ministry of Agriculture and Forestry, 12 January 2011).
3.5 Suppliers and Partners

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Sensors are an important component in our solution as we aim to provide fast and efficient
ways to optimise maximum harvest in a year. The sensors must be accurate, responsive and
in top quality to last for many years and do its job properly.
We view the IT equipment which stores data, analysis, mix chemicals and controls
everything the most important component, its important to identify the most reliable
supplier for this as our solution needs to be working 24/7 for the whole year.
We have partnered up with the major leading fertiliser and pesticide company. The fertiliser
and pesticide company will gain an increase in sales as we will be only using and promoting
their product. This partnership will help us keep the quality of our solution consistent and
we benefit from cheaper chemicals.
We have also partnered up a firm owning one of the largest assembling plants in the world
to assemble and package our solution out. This partnership will grant the firm the exclusive
right to assemble and package our product, which will secure a consistence flow of income.
For us, this partnership will give us easy and effective control over the quality of our
product.
3.6 Strategy: Differentiation
Our solution is currently very innovative without any other similar products on the market,
we have the first-movers advantage.
Our vision is to product high quality solutions thus our cost strategy would be in high cost as
we charge premium price for our quality product
For the competitive scope, our solution is for everyone in the horticulture industry in the
world thus I believe the market is very board
The overall strategy is therefore differentiation.
3.7 Value Chain Activity: Procurement
The most important value chain activity for this business is Procurement.

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Our vision is to produce high quality innovative products. We emphasise on quality
thus making the sourci ng of qual ity material and components our fi rst priority in the
value chain activity. As quality product can only come from quality inputs, without
proper procurement we will not be able to reach our vision.
3.8 Business Processes
3.8.1. SUPPLY QUALITY CHECKING PROCESS This process is aligned to our vision and strategy
to bring customer high quality products. The process checks for the quality of parts coming
into our warehouse from our suppliers.
Components arrive from our suppliers, once checked and passed our quality requirement
they are stored in the warehouse to be assembled later on. The process contributes to the
procurement value chain activity. We are able to charge a premium price for our product by
sourcing the best materials, by doing so we can limit the amount of disposed products that
failed our quality requirements in the final assembling stage.

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3.8.2. PRODUCT MANUFATURING PROCESS - Checks if there are enough material for the
order, if there isnt then materials are ordered from our supplier and checked before being
assembled and then checked again before packaging to make sure the product is in high
quality. The final product is then sent to the warehouse to be shipped.


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3.9 Functionalities
3.9.1. SUPPLY QUALITY CHECKING PROCESS
Send components back to supplier
Update the inventory management system
Integrated with supplier for supply chain visibility
3.9.2. PRODUCT MANUFATURING PROCESS
Check stock levels
Ask supplier for materials
Check for components and final product quality
3.10 Systems

3.10. 1. QUALI TY MANAGEMENT SYSTEM The system manages the quality of inputs and
output to ensure the final product delivered to the customer is in high quality. The system
can reject components from suppliers or dispose the assembled product if they do not meet
the required quality. This ensures we stick to our vision and always deliver high quality
products.
3.10. 2. PRODUCT MANAGEMENT SYSTEM Controls the whole manufacturing process from
receiving a customers order to sending the product off to be shipped out. The
manufacturing process is able to order material if there is a shortage, the system increases
supply chain visibility helping suppliers supply us with the right quantity, good quality and in
time materials for us to produce a high quality end product for our customer.
3.10. 3. INVENTORY MANGEMENT SYSTEM The system checks for the available material and
compares it with the material needed for the order. The system is integrated with the
product management system. This ensures we have enough material to deliver our
promised product to our customer.

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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)

Procurement
1. Supply quality
checking
process

1. Updates the inventory management
system
2. Integrated with supplier for supply
chain visibility

Quality management system

Inventory management
system
Supply chain management
system

Transaction processing
system
2. Product
manufacturing
process
1. Check stock levels
2. Check for components and final product
quality
3. Ask supplier for materials

Product management system


Inventory management
system
Enterprise resource
planning system

Transaction processing
system

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CONCLUSION
Through information systems and the industry analysis, we are able to know the
attractiveness of the industry (neutral) and come up with a generic strategy
(differentiation). From the generic strategy we were able to identify our most important
value chain activity (procurement), business processes and systems to deliver value to our
customers and help achieve our vision.

REFERENCES

1. Research and Markets. (March 2013). Micro Irrigation Systems Market - Global
Industry Analysis, Size, Share, Trends and Forecast, 2012 2018. Retrieved from
http://www.researchandmarkets.com/research/84r27f/micro_irrigation

2. Elizabeth Bechdol, Allan Gray, and Brent Gloy. (n.d.). Forces Affecting Change in
Crop Production Agriculture. Retrieved from
http://www.choicesmagazine.org/magazine/article.php?article=152

3. Ministry for the Environment and the Ministry of Agriculture and Forestry (12
January 2011). FAQ's - Water Programme of Action. Retrieved from
http://www.mpi.govt.nz/news-resources/faqs/faqs-water-programme-of-
action.aspx

4. H. Charles J. Godfray, John R. Beddington, Ian R. Crute, Lawrence Haddad, David
Lawrence, James F. Muir, Jules Pretty, Sherman Robinson, Sandy M.
Thomas, and Camilla Toulmin. (January 28 2010). Food Security: The Challenge of
Feeding 9 Billion People. Science, 327(5967), doi: 812-818. 10.1126/science.1185383

5. United States Environmental protection agency. (2010). Source Water Protection
Practices Bulletin. Retreived from
http://www.epa.gov/safewater/sourcewater/pubs/fs_swpp_fertilizer.pdf