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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Yiru Liu
NetID Yliu555
Group Number: 361
Website Link: http://infosys1102014s1group361.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Kit-wah Huang Firday 12pm
Time Spent on Assignment: 28hours Word Count: 1579

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AN OVERALL EVALUATION OF OUR BUSINESS IDEA
INTRODUCTION
According to WHO, road traffic injuries cause tens of millions of deaths every year (2014), and it is the
toughest problem around the world, threatingthe safety of the people constantly. As for New Zealand,
most of the landscape is mountainous, almost all of the roads were built dramatically with steep hills.
Thid landscape makes the roads twisty, also NZs changeable weather makes it even harder for the
drivers. Therefore, one of the major causes of car accident is cornering sharp angles. As stated in
Deliverable 1, our team has come up with the solution of setting a signal station on the dangerous
corners and connect them with signal receiver or smartphone apps to exchange the road information and
to alert the drivers about on-coming cars. The purpose of this report is to provide an analysis of the
industry that the product is about to enter and to identify some of the information systems in support.
3. BUSINESS SECTION
3.1 Vision
Improve the extent of informationization of transportation, provides a strong protection for its users to
promote the worlds traffic safety.
3.2 Industry Analysis: Traffic Safety Wireless Base Station Industry
Industry: Traffic Safety Wireless Base Station Industry. This is the industry where group of businesses
provide wireless base stations and signal receiver or smartphone app (as receivers) to allow drivers to
exchange road condition information.
Force: High/Low: Justification:
Buyer power: low The term base station is used in the context of mobile
telephony, wireless computer networking and other
wireless communications and in land surveying: in
surveying it is a GPS receiver at a known
position(Wikipedia, 2014). Uses of the base signal
station in the transportation field is a new application.
Therefore buyers do not have a lot of choices because
our group idea is original and innovative.

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Supplier power: high The base signal station and the receivers need to be
provided by international manufacturing companies,It
had small primary (mainly agricultural) and secondary
(manufacturing) industries, which together accounted
for about 29% of New Zealands gross domestic product
(GDP) in 2008, and a much larger tertiary (services)
sector which made up the remaining 71%.(GaneshNana,
2012), because of this, there are very few good quality
and high quality suppliers in New Zealand. Therefore, we
have few choices of suppliers and they have higher
control over the price.
Threat of new entrants: low
Thats hard to promote the product to large-scale use
because the cost of goods, even though a Femtocells
could cost $400 to $500 at retail
(Glenn Fleishman, 2010). With the popularization of our
product, this base station and other equipments will
require a lot of money to build it. This could be a
financial barrier for new entrants.
Threat of substitutes: low An substitute will be the use of traffic signs. Traffic sign is
A sign conveying information, an instruction, or a
warning to drivers (Oxford University Press, 2014). Our
product can exchange the road information between
drivers and this is something the signs can not do. So our
production filled in the blank of the area and have a
unique competitive advantage.
Rivalry among existing
competitors:
low We are the pioneer, because we are targeting at the
potential market for future deployment. That means the
industry is experiencing a market vacancy at the
moment. Therefore, the rivalry among existing
competitors is low due to industrial vacancy.

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Overall attractiveness of the industry: Although theres few suppliers we can choose from, the industry
still have very few competitors and a large money barriers for the new entrants. Our products buyers do
not have lots of choices because thats a new application in transportation field. Due to our unique
characteristics such as real-time analysis and feedback, it is hard to find other substitutes. Overall, we can
say this is an industry with relatively high level of attractiveness at present.
3.3 Customers and Their Needs
We target most people who owns a car, especailly ones that are willing to drive a long distance or people
who are not familiar with complicate landscapes.Total number of car licence holder at 30 June 2012 is
3265769.( Ministryof transport, 2012); that is a large proportion of New Zealanders. Therefore, our
market is pretty wide and there is a large demand. Sector has increased its share of GDP from 66% in
2004 to 71% in 2011(The Treasury,2012). Our products can also help visitors to enjoy their journey
safely.
3.4 The Product and Service
Our product is a signal receiver that can either install on cars or smartphones. Users can use this to detect
coming cars. Our product provides safety protections over our users. Also, we provide people who are
willing to drive a long distance or new drivers an real-time alerting system to keep them alerted through
their journey and this satisfies their primary need.
3.5 Suppliers and Partners
Suppliers are: Base station technology provider who can provide the company with wireless technologies
such as the Avago Technologies. High-tech manufacturers who can manufacture the components of the
signal receiver such as Hi-Tech Manufacturing
Partners are: Online transaction companies e.g. Paypal that provide technology for customers to pay
for our service on the internet. Or smartphone application system provider such as Apple to charge the
customers the price for the service for the mobile app.
3.6 Strategy: Differentiation
Cost strategy for our business is the high cost because the costs of base signal stations are not cheap. If
we want to provide the customers with good services, we must build a huge number of base stations and
place them at all dangerous corner and build the network which eventually covers the whole country.
Competitive Scope for our business is Broad market. We wish that this product is accessible to every car

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and all public transport vehicles, because safety is an indispensable part of everyones life. Therefore, our
targeting customers are of a wide range.
The overall strategy is therefore Differentiation.
3.7 Value Chain Activi ty: Market and sell the product or service
The most important value chain activity for this business is Market and sell the product or service. Our
vision is to provide a safe protection for everyone around the world, and the most important thing is to
reach convince them with our product. Also, it is important because our primary goal is to make this
product popularized to all drivers with a high-cost service. This requires a good marketing and sales logic
to achieve it.
3.8 Business Processes
3.8.1. SALES AND FEEDBACK PROCESS We first promote the product by the Marketing
Department, and then consider whether the customers is interested or not. If somebody is keen to buy
our product we will provide more specific details and try the best to promote the sale. Also, the sales
automation system is used to automate the transaction process associate the business processes.


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3.8.2. MARKETING AND SALES PROCESS This process involved the steps of defining the targeting
markets and find the best marketing strategy for the given product. We should then check if the
marketing method is a good method to use, and try to promote the sale. We involve the Marketing and
Sales department in this process and it is supported by the database system to analysis the marketing
statistics.
Yes
No

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The
product

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3.9 Functionali ties
3.9.1. SALES AND FEEDBACK PROCESS
Management of customers information
Provide feedbacks over the statistics of the product
3.9.2. MARKETING AND SALES PROCESS
Purchasing the product
Identifying the targeting market
3.10 Systems

3.10.1. SALES AUTOMATION SYSTEM - This is a system that automates the sales and transactions in
order to save the time of the customers. This system minimizes the operating cycle and allows both the
customer and the company to increase conveniency and efficiency. The shorter the time it takes to make
the sale, the more competitive advantages our company gains.
3.10.2. DATABASE SYSTEM This is a system that provides the interface between the user and the
databases. It allows the marketing and sales people to check the database for sales information and make
decisions according to this system. Also, database system can be used for customer relationship
management as well since it can provide the sales with better knowledges of the customers.
3.10.3. USER FEEDBACK SYSTEM This is a system where feedbacks about the marketing strategy
and the product itself are collected and are used to provide the managers with information that can be
used to make better decisions. Also, this system can be used to collect ideas on the product
improvements, which is very essential in the product reengineering part.

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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)

Market and
sell the
product or
service
1. SALES AND
FEEDBACK
PROCESS
1. Management of customers information

2. Provide feedbacks over the statistics of the
product
SALES AUTOMATI ON
SYSTEM

DATABASE SYSTEM
Transactional processing
system

Decision support system
and Customer relationship
management system
2. MARKETING
AND SALES
PROCESS
1. Purchasing the product

2. Identifying the targeting market
DATABASE SYSTEM


USER FEEDBACK SYSTEM
Decision support system
and Customer relationship
management system
Decision support system

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CONCLUSION
To conclude, I believe this is a brilliant business idea with originality and creativity. The industry is
relatively vacant currently, therefore it is a great chance. However, we should still consider the fact that
we will be having more competitors eventually. We use information system and information technology
to deliver value by using the systems to support these business process. The use of IS/IT allows us to
strategically manage the company with better efficiencies.

REFERENCES

1. World Health Organisation. (2013). 10 facts on global road safety. Retrieved from
http://www.who.int/features/factfiles/roadsafety/facts/en/


2. Ganesh Nana. (2012). Story: Industrial sectors - Secondary sector. Retrieved from
http://www.TeAra.govt.nz/en/industrial-sectors/page-3


3. Oxford University Press. (2014). Definition of traffic sign in English. Retrieved from
http://www.oxforddictionaries.com/definition/english/traffic-sign


4. Glenn Fleishman. (2010). small is beautiful: put a cell tower in your house. Retrieved from
http://arstechnica.com/gadgets/2010/06/small-is-beautiful-put-a-cell-in-your-house/

5. Ministry of Transport. (2012). DRIVER LICENCE AND VEHICLE FLEET STATISTICS. New Zealand:
Author.


6. The Treasury. (2012). New Zealand Economic and Financial Overview 2012. Retrieved from
http://www.treasury.govt.nz/economy/overview/2012/18.htm