This document provides a business plan for a proposed product to restrict drink driving. The product is a Bluetooth-enabled breathalyzer that would connect to an ignition lock in a vehicle. If a driver's breathalyzer reading is too high, the ignition lock would not allow the vehicle to start. The business plan outlines the vision, industry analysis, target customers and their needs, product details, suppliers and partners, low-cost strategy, value chain activities, business processes, product functionalities, and supporting systems. The overall goal is to create a more affordable and effective solution than existing products to help reduce drink driving accidents and make roads safer.
This document provides a business plan for a proposed product to restrict drink driving. The product is a Bluetooth-enabled breathalyzer that would connect to an ignition lock in a vehicle. If a driver's breathalyzer reading is too high, the ignition lock would not allow the vehicle to start. The business plan outlines the vision, industry analysis, target customers and their needs, product details, suppliers and partners, low-cost strategy, value chain activities, business processes, product functionalities, and supporting systems. The overall goal is to create a more affordable and effective solution than existing products to help reduce drink driving accidents and make roads safer.
This document provides a business plan for a proposed product to restrict drink driving. The product is a Bluetooth-enabled breathalyzer that would connect to an ignition lock in a vehicle. If a driver's breathalyzer reading is too high, the ignition lock would not allow the vehicle to start. The business plan outlines the vision, industry analysis, target customers and their needs, product details, suppliers and partners, low-cost strategy, value chain activities, business processes, product functionalities, and supporting systems. The overall goal is to create a more affordable and effective solution than existing products to help reduce drink driving accidents and make roads safer.
This document provides a business plan for a proposed product to restrict drink driving. The product is a Bluetooth-enabled breathalyzer that would connect to an ignition lock in a vehicle. If a driver's breathalyzer reading is too high, the ignition lock would not allow the vehicle to start. The business plan outlines the vision, industry analysis, target customers and their needs, product details, suppliers and partners, low-cost strategy, value chain activities, business processes, product functionalities, and supporting systems. The overall goal is to create a more affordable and effective solution than existing products to help reduce drink driving accidents and make roads safer.
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INFOSYS.110 BUSINESS SYSTEMS:
DELIVERABLE 2: BUSINESS SECTION 2014
Name Blair Ratu NetID Brat960 Group Number: 090
Website Link: http://infosys1102014s1group090.blogspot.co.nz/ Tutorial Details Tutor: Day: Time: Olivia Tuesday 9am Time Spent on Assignment: 15 hrs Word Count: 1617
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2 DELIVERABLE 2: DRINK DRIVING SOLUTION INTRODUCTION The problem my group attempted to solve, was the problem of drink drivers and the amount of DUI offenders. We created a device that could be implemented by anyone into their cars ignition. Its the size of an iphone that is a specially designed breathalyzer, that takes in the drivers alcohol level. The breathalyzer would send bluetooth signals to a constant lock placed in the igntion of the drivers car. The ignition would not unlock If the users level was too high for their specific age group, restricting the driver from operating the vehicle. Our main goal was to create a device that is more efficient and of less cost than the existing ideas, which would allow more drink drivers to posess this device and ultimately make the roads of New Zealand a safer place. 3. BUSINESS SECTION 3.1 Vision To provide a product that helps restrict the the dangers of drink driving through technology and systems to ultimately create safer roads in New Zealand. 3.2 Industry Analysis: Industry: Drink driving restriction industry. This industry is increasing in size as the dangers of drink driving are continuing to occur (Interlock facts, 2013). Police estimate that each day in New Zealand , an average of 8,764 breath tests of drivers are undertaken and 100 people are charged with drink-driving (New Zealand police, 2012). Thats 100 people at risk on the road each day. Current products within this industry that aim to restrict drink driving include license revocation and car impounding. These forms of restriction are not effective, as Disqualified drivers comprise 10 percent of the alcohol/drug affected drivers in fatal crashes (Transport.govt.nz, 2013) . Indicating the current solutions within this industry are just not working. This will allow for my product to do well in this industry, as it aims at 100% restriction of operation of a vehicle under the influence and is an affordable product.
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3 Force: High/Low: Justification: Buyer power: High There are a few companies in this industry that supply a similar product. This gives the customer high buying power, as they have a selection of choices. This means for my company to successfully strive in this industry, it will have to have a competitive advantage. Supplier power: Low While a lot of development will have to take place in order to create my product, suppliers of each of these main items are vast and many exist, causing my choices of purchasing to be high and causing supplier power to be low. Threat of new entrants: Low There are no significant entry barriers, as start up costs are not high. There are a lack of competitors in this industry and therefore the threat of new entrants would be low. Also, this industry is still fresh, there is room for advances in aspects of the quality of breathalyzer/ignition locks, meaning new ideas and features would suit well and create competitive advantages for new firms. Threat of substitutes: Low There are a limited amount of alternatives to this product for drivers who which to restrict themselves from driving drunk. There would also be a high switching costs extracting the users car of the ignition lock, therefore customers would be reluctant to switch. Rivalry among existing competitors: High Like I previously stated, there a few competitors in this industry, and because their products are quite
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4 similar, it will create competition. (University of Illinious, 2010) Overall attractiveness of the industry: I believe this industry is not entirely attractive, but is still a profitable one nonetheless. This industry is still fresh, and there is room for improvement on the current technologies that exist, meaning a competitive advantange would be a crucial factor for a product to succeed. 3.3 Customers and Thei r Needs My target group of consumers is drivers in New Zealand with drink driving habits, mostly younger offenders as they are the most commonly convicted and are most likely to cause a crash (Controller and Auditor general, 2013). Drink drivers will be satisfied by my product which will aim to 100% restrict the operation of their vehicle under the influence. Although similar products exist in this industry, they do not fully satisfy the needs of the user, as the cost of the breathalyzer per is around $2400 (New Zealand herald, 2013).My product will satisfy the customer by being a quick working system through the use of wireless data transfers, and will not be of a large cost. 3.4 The Product and Service The product will be a size that can fit in a cars glove box, and use a wide range of information systems to deliver the data to the ignition lock. Having a wireless breathalyzer is more efficient and personal for the user and will be more efficient that current models which are wired. The bluetooth breathalyzer can be sold over the counter at a retail level, or through the internet and will have to be linked to the ignition lock which can supplied at auto electricians in the nearby area. 3.5 Suppliers and Partners This product will require a fair amount of research and development, as it integrates breathalyzer, bluetooth and ignition capabilities. Our main suppliers would be basic breathalyzer models available to the general public from companies such as www.sobercheck.co.nz. R&D would have to take place to integrate bluetooth technology
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5 into the breathalyzer system. Finally our company would have to partner with a car mechanic company like AA or Pitstop, to help with inserting the lock onto the ignition. 3.6 Strategy: Focused l ow cost This product will be narrowly marketed at drivers who wish to implement this ignition lock system into their vehicle.. The low cost element will be due to the use of systems. Currently in this industry, there are products similar to mine that charge a monthly fee of $175, or a yearly fee of $2100 (New Zealand Herald,2013) this causes many drink drivers to avoid this device and choose a $800 fine instead. My product aims to be of low cost, nearly half the yearly fee of the currents models. This will create a competitive advantage for my product and company and will increase demand for the device, as the costs have decreased. The overall strategy is therefore Focused low cost. 3.7 Value Chain Activity: Delivering the product and service. The most important value chain activity for this business is Delivering the product and service. This product requires an amount of technology and systems to be integrated. Therefore, Delivering the product, which includes the customer purchasing the bluetooth breathalyzer system and servicing the customer, which includes locking the ignition in the users car by an auto electrician, will be the most important value chain activity that adds value to my idea. 3.8 Business Processes 3.8.1. PRODUCT SELLING PROCESS This process is the product section of my value chain activity and the first half of delivering the product/service. This is where the customer will make a request for the bluetooth breathalyzer and receive it, either online or in a store.
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6 Start Receive order from customer Order processing system Inventory Process order Send bluetooth breathalyzer to customer Receive payment from customer Make arrangement for breathalyzer to be linked with ignition lock at auto- electrician End
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7 Start Receive request for ignition lock from customer Ignition lock integration system Auto electrition Insert lock into ignition Link ignition lock with users Breathalyzer Receive payment from user End 3.8.2. I GNI TION-LOCK INTEGRATION PROCESS This process is the service part of my product, an a integral part of the value chain activity I chose. This process will include installing the ignition lock as well as linking it to the bluetooth breathalyzer. This business process will require help from our suppliers and our partners. And will use be effective through the use business processes.
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8 3.9 Functionalities 3.9.1. PRODUCT SELLING PROCESS Recognises the customers purchase order Delivers the product to the customer 3.9.2. I GNI TION-LOCK INTEGRATION PROCESS Lock is inserted into ignition Ignition-lock is Linked to Bluetooth Breathalyzer 3.10 Systems
3.10. 1. PURCHASING/ORDER SYSTEM This information system will be required for my first business process and will support the customer purchase order functionality. Customers will order their Bluetooth Breathalyzer and the purchasing/order system will support this process by recognizing the purchase and automatically order a breathalyzer for the specific customer. 3.10. 2. I GNI TI ON-LOCK INTEGRATION SYSTEM This system will occur in the second phase of my value chain activity, and will be used by auto electricians to integrate the lock onto the ignition. This system will support my both of my functionalities listed above and will also support the technology within the ignition used to recognised the data received from the bluetooth breathalyzer. 3.10. 3. DATA TRANSFER SYSTEM - This system is the most important for my product, as it will take the data captured from the breathalyzer and transfer it into information and sent wirelessly using bluetooth technologies for the ignition lock to understand. This information will be examined by the ignition lock, and determine whether the lock will remain locked or unlock. This information system supports the linking of the two devices and functionalities I featured in the ignition-lock integration process, and supports our vision to 100% restrict any form on intoxicated driving for occuring.
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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)
Delivering the product 1. Product selling process
1. Recognises the customers purchase order 2. Delivers the product the customer
Purchasing recognising system
Order processing system Transaction processing system
Supply chain management systems 2. Ignition- lock integration process 1. Lock is inserted into ignition
2. Ignition lock is linked to bluetooth breathalyzer Ignition lock integration system
Data transfer system
Supply chain management system
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10 CONCLUSION Overall, this industry does look appealling for my product and would be easy for my product to thrive in due to its uses of information systems. I feel that I would be able to successfully implement this product into this industry while successfully accomplishing my companies vision. Furthermore, throught the use of business processes which use systems backed up by my functionalities I feel my product will successfully deliver what my company strives to do. REFERENCES
1. Ministry of transport. (2013). Alcohol and drugs crash facts [Crash facts for the year ended 31 December 2012] Retrieved from http://www.transport.govt.nz/assets/Uploads/Research/Documents/alcohol-drugs- crashfacts-2013.pdf
2. Alcohol New Zealand. (2010). Road traffic crashes and deaths. Retrieved from http://www.alcohol.org.nz/research-resources/nz-statistics/road-traffic-crashes- and-deaths
3. Ali, I. (2013, January 18). Cost hit driver locks The New Zealand Herald Retrieved from http://www.nzherald.co.nz/northern- advocate/news/article.cfm?c_id=1503450&objectid=11088758
4. University of Illinios (2010) Industry and Market analysis Retrieved from https://wiki.engr.illinois.edu/display/BIOE414/Industry+and+Market+Analysis
5. Controller and Auditor-General (2013) Drink-driving statistics. Retrieved from http://www.oag.govt.nz/2013/drink-driving/appendix1.htm
Operations Management in Automotive Industries: From Industrial Strategies to Production Resources Management, Through the Industrialization Process and Supply Chain to Pursue Value Creation