Introduction People are becoming increasingly lazy due to their dependence on technology to do simple, everyday tasks, having detrimental impacts on the populations health. Decreased levels of fitness have been proven to contribute to the obesity epidemic, coronary heart disease, diabetes, cancer, sleep apnea, depression and many more (C. Hillman). I believe that generally people are unaware of the importance of exercise, predominantly using weight as a measurement of health rather than fitness levels. This can be a truly inaccurate representation. Together with my partner, we have created new train and bus ticket machines that reward exercise for a free transport ticket. By collaborating with Nintendo, for their Wii Fit technology, and social media, sites to help raise support and awareness, we believe this technology with help achieve our vision. 3. Business Section 3.1. Your Vision. We want to provide the forum to raise awareness, provide incentive and the opportunity to increase the level of exercise in New Zealand in a fun and accessible manner. 3.2. Your Industry Analysis. The industry that our business operates within is the community sector in New Zealand focused on benefiting the social and health aspects. We believe our business is philanthropic. As our business in non-for profit, it is designed to benefit the population and in turn, the economy through lowering spending on healthcare. Porters Five Forces is the framework that I am going to use to analyze the attractiveness of this industry and the business strategy development. The five Forces are bargaining power of suppliers, bargaining power of consumers, threat of new entrants, threat of substitute products and the intensity of competitive rivalry. It is slightly applying this framework to a non-for profit organisation. Porters Five Forces can be used by non- profit organisations as a tool to investigate competition for donors and consumers, and to make sure that future influences can be addressed and planned for. Force High/low Justification Buyer power Low For non-profit organizations, buyers refer broadly to include consumers, government, philanthropic funders, donors and corporate sponsors/partners. Buyers have the power to apply considerable pressures on the community sector and may form the situation whereby there INFOSYS 100; DELIVERABLE 2 Aston O'Keeffe 6760692 is increased competition for the same group of funding. The way that buyer satisfaction is measured could be through satisfaction surveys and routinely communication with stakeholders. I believe that the buyer power is high as donors have all the power in relation to funding. However I believe from the consumer point of view, supplier power could be perceived as low in this industry. This is because there are many substitutes. In saying this, our product is pretty unique on comparison with other products in the industry. Supplier power High Suppliers depend on the type of non-for profit organisation. They may include government, other profit or non-for profit organisations. Suppliers may include government organisations and other non-profit organizations. Nintendo Wii and social media sites such as Facebook, Twitter and Instagram fund our organisation. Nintendo have made the machines, paying for initial, one off set up costs. It would not be too costly or difficult, as they have already developed a lot of the technology. The incentive for this is that Nintendo get positive publicity. The social media sites get increased exposure, which gives them more information to use for advertising. I think that there is high supplier power as such businesses heavily reply on donors to operate. Additionally, I do think that it is dependent on the economy. For example, if there is a recession, it is less likely that money will be spent on non-for- profits. Threat of new entrants Low In terms of non-profit organisations, new entrants may mean that there is increased competition for memberships and donations, which may decrease the amount of money raised by the non-profit organization. In non- profit organizations providing human welfare services, additional entrants in the market may provide greater choice for government tenders and health insurance providers; which may result in the non-profit organization being forced into providing additional services for the same level of funding. As this is a low profit industry, the threat of new entrants is low. Threat of substitutes High The threat of substitute is the potential threat of another good or service, which can limit the profitability of an organisation. In a non-for INFOSYS 100; DELIVERABLE 2 Aston O'Keeffe 6760692 profit industry, the threat of substitute refers to the money lost when suppliers fund a different organisation. There are many charity organisation and non-for profits out in the market so the threat of substitutes is high. Its important to market our product as unique and worth funding, which we believe is true. Rivalry among existing competitors Medium As with any industry, there is competition between not-for-profit organizations for benefactors, sponsorships, government grants as well as consumers share. To analyse rivalry, it is essential to review a number of competitors offering similar goods or services in comparison with the number of consumers in the respective market. It can also be measured by comparing the number of non-for-profit orgs. in the community and compare them with the number of donators or money given. This can show how concentrated, and therefore how competitive a market is for attracting money. Like with all businesses, profitability is still a significant consideration for businesses in the community sector. They need to evaluate the fluctuations in society and industry that may impact on their ability to deliver their services. Specifically for our company, we have powerful level of market due to the social media aspect of our design and also the competitive advantage that there are not many products like ours on the market. However, there are plenty of other charitys that funded making it more the market more competitive. Operating within a non-for-profit market, the overall attractiveness of this industry is low, as I believe the main feature of attractiveness is profitability. 3.3. Your Customer and their needs. Our customer include the general public, but more specifically, the commuters who use public transport due to their increased likely who that they will use the machines and also people who use social media. Our product is supposed to benefit the population, on the widest demographic as possible in order to reach as many people with our message. People who use social media, which is highly prevalent in our society, are also our customers, as photos of people using our machines are shared on platforms like Facebook, Twitter and Instagram. This means that the social media aspect has to be user friendly; simple, quick and functional, in order for people to have ease of use. The needs of the people who use our machines will be making the experience fun and easy to do. This ensures positive feedback and customer satisfaction, which is necessary for our product to be successful. There also has to be enough room for people to perform the exercises, INFOSYS 100; DELIVERABLE 2 Aston O'Keeffe 6760692 instructions on how to use the machines, and also the machines need to be marketed in the proper way so that people want to use them. 3.4. How your Product/Service fulfills the customer needs identified above. Our product fulfills these needs. Our machines are aesthetically pleasing, using bright colours and lights to attract attention and stand out from the regular ticket machines. Thy have a large, high quality touch screen and come with an instructional video in multiple languages to ensure a wide variety of people can access them. The exercises are clearly performed in the video in order to make sure that the users know how to complete the task. The machine itself also has verbal cues, to make it At the end of the exercise, the machines inbuilt camera takes a picture of the user, and gives them the option to upload it to their preferred social media sight. This is very easy, as the user simply has to put their user name and password using the touch screen and at the end of the session, you are automatically logged out. This is done by the session timing out after the allotted 2 minutes. If they do not want to do this at the time, they can simply go home later when they have time and visit our Facebook page to see their photo, which they can easily share. To make sure the user leaves happy and encourage, the machine gives them verbal feedback and and thanks them for using the machine, returning their exercise for the free train/bus ticket. There is also an optional and brief survey on the whole experience. If the customer chooses to proceed and fill out the questionnaire, they select their preferred answer to a multiple choice question such as did you enjoy this experience, would you use this machine again, does this promote exercise in a way that is fun and interactive, are you aware of the importance of exercise?. This is ideal for us as it gives us really important feedback. 3.5. Your Suppliers and Partners. Our partners include Wii Fit, which is developed by Nintendo. They have sponsored us as a charity to help our message and promote themselves in the process. There are collaborations with other health related business that want to contribute and raise awareness of the importance of exercise such as Les Mills. Their incentive is the publicity they get in return, as the machines have adverts promoting them. The government have agreed to help set up the initial costs of the machines along with Wii fit, using the New Zealand Transport agencies and their part of their health budget. They have agreed to this as it is a good way for them to promote a healthier lifestyle, which is one of the aims of the government health plan. This reduces costs in the long run. Additionally, as Nintendo already have the technology developed, there will be lower R&D costs making set up easier.
INFOSYS 100; DELIVERABLE 2 Aston O'Keeffe 6760692 3.6. Your Strategy. Seeing as our business is a non-for-profit, the strategy would be different to a business whose primary goal is profit. A business strategy should articulate the focus and goals of a business, and further an action plan. Therefore, I have chosen the SWOT and PEST analyses to help define the strategy. Strengths
Unique way of promoting exercise Social media aspect reaches a large demographic of people Promotes good incentive for people to take public transport Low R&D costs In favour of social, economic trends Easy to use Political
Funding is largely reliant on the political body Low tax for non-for-profits Level of corruption in New Zealand is realitively low, increasing the level of realiability As it promotes public transport, it also aids environmental issues in society (lowers carbon footprint) Weaknesses
Many charity organisations in the industry, so potentially difficult to get funding Physically, it may take a long period of time to get the correct clearance from the transportation industry for this to go ahead Must have the room to do the exercises Many different businesses are collaborating, so it may be difficult to communicate Economic
At this stage, the New Zealand economy is bouncing back from the recession in 2008, so funding a charity like this would also promote jobs, health and promote public transport in society Low tax rates for charitys Low research and development costs High initial costs Opportunities
Well established demographic as lots of people already use trains and buses Funding sources would be easier to get as there is an advertising aspect of our design Social media; good for advertising It is a societal norm to take trains and buses as a form of transport Economically, it is also cheaper for Technological
Embraces new technology (i.e. keeping up with social trends) using social media Technology is already developed and therefore, less money will be spent on research and development INFOSYS 100; DELIVERABLE 2 Aston O'Keeffe 6760692 people to use public transport, improving the size of the target market reached Non for profits pay lower tax Threats
Economic conditions are very important to our business. Economic downturns may negatively impact funding and economic booms may mean less people taking public transport. A change in customer needs (i.e. less people taking public transport) Social
Lifestyle trend: Increased importance on health in our society Lifestyle trend: Increased importance on the environment Public media aspect Consumers would have an open mind as they get a free ticket in the end Promoting health in society is percieved as positive The overall strategy is therefore broad market, low cost as we dont aim for a profit. 3.7. Identify the MOST important Value Chain Activity for your business. The value chain is the process or activities performed by an organisation that adds value such as marketing and customer service. I believe that the most importance value chain activity for our business is to promote and fulfill our vision of encouraging fitness in society. This is done most efficiently through the important social media aspect of our product/service as it is a good marketing tool, reaches a wide demographic of people and is the social norm for businesses in present day society. If more people are targeting, the more the message spreads which is what we find most important. It also embraces new technologies. This is why I believe that the social media design creates the most value to our business.
INFOSYS 100; DELIVERABLE 2 Aston O'Keeffe 6760692 3.8. Identify and model TWO Key Business Processes that take place within the Value Chain Activity you identified above
I have selected to show this process as it shows the social media aspect. This is clearly important to our organisation because our service is about promoting health and fitness on the widest scale possible. It is a form of marketing as social media is the social norm these days of promoting businesses. It is proven to reach a broad market as millions of people rely on it on a day-to-day basis and it also captures marketing research.
INFOSYS 100; DELIVERABLE 2 Aston O'Keeffe 6760692
I have selected this process as it shows the complete experience that the customer goes through. It is a consumer based service, which means it is exceptionally important that we attend to the consumers needs. Through this business process, loyalty will be established as well as the promotion of our service as customers will talk about this through word of mouth. Our fun and interactive way of promoting exercise will help our vision.
INFOSYS 100; DELIVERABLE 2 Aston O'Keeffe 6760692 3.9. Identify at least TWO Functionalities per process that would be needed to support the Key Business Processes identified above. 1. Social Media: This functionality is required as it fulfills our social media aspect of the design. The inbuilt computer captures and uploads photos onto social media sites like Facebook, Twitter or Instagram. This further promotes our service in a way that is accessible to a large demographic of people. It is additionally important to have our business promoted online as we can capture demographic and marketing research. 2. Customer Satisfaction: This is an important functionality as our product/service is based around educating the consumers as well as their overall experience. As identified earlier, there is an optional survey that is quick and easy to fill in using the touch screen. This identifies our target group and also their knowledge and satisfaction of the experience. Also, the consumer gets a free ticket in return for exercise (proven to release endorphins). 3.10. Identify THREE specific Systems that you will need to support the functionalities identified above. 1. Social Media System (SMS) Our Social media System uses Content Management System (CMS) and also Customer Relationship Management (CRM). CRM helps to organize our data and support the functionalities, as this computer program allows ease of editing, publishing and modifying content, which is very important for social media and data research. It is imperative that we keep up with the trends and CMS would help us achieve this. It is also especially useful to manage workflow for collaborative teams. C
2. Customer Satisfaction System (CSS); Our Social Media System is supported by CRM. This is an important system used to support the functionalities listed above for many reasons. It helps understand our current and future customers. This technology helps manage content to help things such as customer service. It is imperative that the customer relationship is strong because our whole idea is based on impacting the consumer in a positive way. This is supported through surveys, the free ticket in return for exercise and the opportunity to have this unique experience in the first place. To ensure good customer service, we have a web-based self-service system in built into our ticket machines. The touch, LED screen is easy to use, fun and efficent. It allows for feedback of the experience, making sure the customer is happy, which is really important to us. It also helps track fund-raisings, sponsors, target market research and communication. It is also a type of tailored marketing as consumers can upload their pictures onto their individual social sites.
INFOSYS 100; DELIVERABLE 2 Aston O'Keeffe 6760692 3. Supply Chain Management Systems (SCM); Involves managing information flows between and among stages in a supply chain to maximize effectiveness. It is important that our communication between all of the collaborative teams is done efficiently. Our suppliers are the New Zealand Transport agency, which is a government chain, Nintendo and various health operations such as Les Mills gym. Most of this communication can be done online though email, intranets, online banking etc. This makes it accessible across businesses and even over countries and time zones. It also includes the design, physical set up of the machines in the train and bus stations, the excecution and control of the project. 3.11. Summarize sections 3.7 3.10 in a table. Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s) Promoting health and fitness in society The use of social media to promote our vision Take photos Upload via web to social media Social Media System CMS CRM Ensuring customers are content and loyal Fun, interactive experience, in return for free ticket Optional surveys and feedback Customer Satisfaction System SCM ERP
Conclusion Our non-for-profit business uses a low cost, broad market strategy supported by the PEST and SWOT analyses. Our vision is to promoting fitness using incentive and providing the opportunity, sustained through the use information systems such as CMS, CRM, SCM and ERP. Our Social Media System sets us apart and embraces new technologies, adhering to social norms. Based in the community sector of the economy, funding is essential. Also, customer experience is extremely important to our business as it is based around the customer. Through CRM, we are able to edit, maintain and control customer feedback.
INFOSYS 100; DELIVERABLE 2 Aston O'Keeffe 6760692 References: Dahlberg, G. 2013. Its all about the Customer, Stupid. The importance of Customer Centric Partners. Thought Leaderships. Retrieved http://www.gtnexus.com/blog/cloud-technology-platform/its-all-about-the- customer-stupid-the-importance-of-selecting-customer-centric-partners/ The Economic Times, 2014, the Definition of Value Chain, Retrieved http://economictimes.indiatimes.com/definition/value-chain Kock, N., Grey, P., Hoving, R. (2002) IS Research Relevance Revisited: Subtle Accomplishment, Unfulfilled Promise, or Serial Hypocrisy? Communications of the Association for Information Systems: Vol. 8, Article 23. Retrieved http://aisel.aisnet.org/cais/vol8/iss1/23
Mingers, J., and Stowell, F. (1997) Information Systems An Emerging Discipline? Information Systems. Volume 1 TCC group, 2002, Keys to Successful strategic Planning, http://www.tccgrp.com/pdfs/per_brief_tenkeys.pdf WebMD, 2014, Exercise and Depression, http://www.webmd.com/depression/guide/exercise-depression Wikipedia, 2014, Information Systems, http://en.wikipedia.org/wiki/Information_systems Wikipedia, 2014, Non-profit Organisations, http://en.wikipedia.org/wiki/Non-profit_organizations Wikipedia, 2014, Content Management Systems, http://en.wikipedia.org/wiki/Content_management_system Wikipedia, 2014, Consumer Relationship Management, http://en.wikipedia.org/wiki/Customer_relationship_management
Chapter One QN 1-25. What Should First-Time Entrepreneurs Know Before They Launch? What Should Entrepreneurs Know Before They Commit To Launching Their Firm?