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INFOSYS.110 BUSINESS SYSTEMS:
DELIVERABLE 2: BUSINESS SECTION 2014
Name Arthur Gillies NetID agil867 Group Number: 253 Website Link: http://infosys110group253.blogspot.co.nz/ Tutorial Details Tutor: Day: Time: Kirsten Thursday 9am Time Spent on Assignment: 13 hours Word Count: 1629
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2 A SOLUTION TO CONGESTION INTRODUCTION The CommuterPro incentivises cycling as a solution to Aucklands 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 Aucklands 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 governments buyer power is thus immensely
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3 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
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4 transport (Nextbike, n.d.), however bike rentals 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 Thei r Needs The government is the key customer for the CommuterPro. A governmental focus is transport, and the congestion of Auckland. Auckland is the worlds 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 Navmans GPS systems, government officials will be able to monitor the routes taken and distances travelled by CommuterPro users.
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5 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 systems 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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6 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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Start Stock Inventory Levels Relative to Demand End Load Packaged Order onto Transport System Receive Order Is everything in the order in stock? Yes Inform Warehouse Manager to Begin Packaging the Order Contact warehouse manager, who will then restock on missing items No Has customer received the goods they ordered to a satisfactory standard? Yes Inquire as to what was missing Or what was of dissatisfactory standard Product Tracking System No Are all items of the order now in stock? Yes No Warehouse Sales Inventory
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8 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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Start Stock Inventory Levels Relative to Demand End Load Packaged Order onto Transport System Receive Order Is everything in the order in stock? Yes Inform Warehouse Manager to Begin Packaging the Order Contact warehouse manager, who will then restock on missing items No Has customer received the goods they ordered to a satisfactory standard? Yes Inquire as to what was missing Or what was of dissatisfactory standard Product Tracking System No Are all items of the order now in stock? Yes No Warehouse Sales Inventory Start Order Materials Required for Product Manufacture Collect and Store Raw Materials In Suitable Environment Are all materials in sufficient stock to begin manufacturing process? Start Manufacturing on Assembly Line Yes No Acceptable Quality? Dispose of Unacceptable goods No Store Goods in Warehouse, Ready for Customer Orders Yes End Receive Invoice and Complete Payment for the Materials Payment Complete? Yes No Accounts Payable Manufacturing Quality Control Inventory Receiving
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10 3.9 Functionalities 3.9.1. ORDER MANAGEMENT PROCESS Prepare customer orders Deliver orders 3.9.2. THE MANUFACTURI NG 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 PROCESSI NG 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. QUALI TY 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 companys vision.
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11 3.11. Summary Table: Value Chain to Systems
Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s)
Procurement 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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12 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 Aucklands 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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