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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Andrew Student
NetID rsmi507
Group Number: 215
Website Link: http://infosys1102014fcgroup215.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Helen Chen Tuesday 3pm
Time Spent on
Assignment:
25 hours Word Count: 1642

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PALM OIL BARCODE SCANNING APP
INTRODUCTION
Palm oil is a product thats used in many day to day products, which has increased demand
and is causing wild life loss in samatra, indonesia and parts of malaysia (WWF, 2010). Not
only does this effect animals, but also indegionous people who have been forced off their
land (Shell, Casson, et. Al 2009) in order to produce more palm oil plantations.
Due to the lack of required labelling on products in NZ and Australia, companies dont have
to name whether it is contained in the product.
In order to indirectly reduce deforestation through our solution, we are creating an app
which tells consumers whether the product contains palm oil, which will aid them in
purchasing Palm Oil free, or Certified Sustainable Palm Oil (CSPO) products. By doing this,
companies will eventually be forced to provide products which either use CSPO, or none at
all.
3. BUSINESS SECTION
3.1 Vision
To provide an easy to use application for any consumer, which informs them whether the
the product being purchased contains palm oil, therefore reducing environmental harm.
3.2 Industry Analysis: Palm oil Information Industry
Industry: Palm oil Information Industry.
Force: High/Low: Justification:
Buyer power: Low There is only 1 comparable application which is
created by the El Paso Zoo (itunes, 2013). This is
based on American products, which most are not
available within NZ. Despite the similarity of the

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applications, it is not tailored to NZ products
which creates a very low buyer power as our app
is the only option.
Supplier power: Low Supplier Power is low, due to large amounts of
companies which offer software development
within NZ. After searching on IndexNZ, 136
companies were provided (IndexNZ, 2014)
showing there is shortage of suppliers within NZ.
As a result, there is very high competition
between companies, making supplier power low.
Threat of new entrants: Low Threat of New Entrants is low, due to many
factors. The first being the amount of time
needed in order to collect the information on
indvidual products and enter it into a system. The
system also needs to be country specifc so that
the products correlate with the supermarkets
where consumers will be shopping. Due to the
large amount of time invested into the product
database, it limits the threat of new entrants.
Threat of substitutes: High The Threat of Substitutes is currently high, due to
potential law changes. In the coming year, the
legislative governance forum will meet and
decide on Recommendation 12 of the FSANZ
Labelling Logic report (Unmask Palm Oil, 2014).
If the recommendation is passed, then any
products using palm oil will be labelled as such. If
this law is to pass, there will be less need for our

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application. This may explain the low number of
downloads of the U.S. application as there is
mandatory labelling within America (Sustainable
Palm Oil, 2011).
Rivalry among existing
competitors:
Low Rivalry amongst existing competitors is low, even
though there is an already existing product
(itunes, 2013). It is within America and tailored to
American products, which as a result is not a
threat. Within NZ there is no current product
even remotely similar.
Overall attractiveness of the industry: The pam oil information industry is an attractive
industry due to low supplier power and low rivalry amongst existing competitors.
Unfortunately the industry faces the risk of law changes, which may reduce the
attractiveness. To combat this change, the application could be modified to give more
detailed information. The diverse nature of the data provided and high barriers to entry
create an appealing and attractive industry.
3.3 Customers and Thei r Needs
The target group of customers for the palm oil barcode scanner app, are environmentally
conscious consumers from any age group. The only factor being you need a cellphone which
will run the application. These customers primary focus is too buy environmentally friendly
products, and are focused on making an morally right decision to only buy products which
use either no Palm Oil, or Certified Sustainable Palm Oil. These customers need to be
provided with correct and informative information about Palm Oil, so they can grow their
knowledge.
3.4 The Product and Service

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The palm oil barcode scanner app scans the barcode of a product, and are in return given
information regarding the Palm Oil use within. The app gives a range of information to the
consumer:
- The level of palm oil in the product
- Whether it is Certified Sustainable Palm Oil (CSPO) or not
- Whether it is openely labelled or hidden behind a number of names in order to
deceive consumers
- Wether the company plans on using Certified Sustainable Palm Oil in the near future.
The application also provides a list of the Top Palm Oil Freindly products which have the
top brands whos products use CSPO, or none at all. This gives customers a chance to
browse common brands and look at how approach the use of palm oil in their products.

3.5 Suppliers and Partners
The first supplier is the company who will collect and process all the data needed for each
individual product to be entered into the application
The second is the app developer who will develop the application, once all the data is
processed and available to put into the app from our first supplier. They will also be
repsonsible for mainting the application, and updating itmaking improvements if necessary.

Our first partner of the application is the Itunes store, and Google play. They will be the
company which sells the app, creating a partnership as they will gain a percentage of each
application sold.
Our second will be companies who have brands on our Top Palm Oil Friendly list. We will
offer each company advertising slots within the application if their brands/products feature
on the list.
3.6 Strategy: Focused Low Cost

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Focused low cost will be our strategy, as it would be retailed at approximately $3-$4, along
with most other applications for sale. As a result of the low price, it is very cheap and
becomes easily accessible and finanically acheivable for most consumers.
The application satisfies a narrow market of consumers, who are concerned about the use
of palm oil in products. Despite there being a large number of people in the market, it only
pleases this particular need.
The overall strategy is therefore Focused Low Cost due to low cost and a narrow market.
3.7 Value Chain Activity: Technology and Development (and R&D)
The most important value chain activity for this business is Technology and Development
(and R&D). Technology and Development (and R&D) is the most important value chain
activity because it addresses our most important issue of making and updating the data
base which stores all the information about each product.
The application adds value for the consumer by providing crucial information on
supermarket products regarding Palm Oil. A large amount of time is needed in order to
collect such a large amount of information accurately. Therefore, the development of the
database along with the technology provided to aid research and also create the app proves
Technology and Development (and R&D) is the most important value chain activity.
3.8 Business Processes
3.8.1 PRODUCT GROUPING PROCESS This business process categorises brands into a top
Palm Oil Friendly list which gives consumers the possibility of looking at the list, and
widening their knowledge about brands which are conscious of using either sustainable
palm oil or no palm oil at all.

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3.8.2. PROTOTYPE TESTING PROCESS Prototype testing is very important to us as we need
to present our best product, otherwise there is very little point in trying to sell the product.
Through testing, we can identify the malfunctions along with what is successful on our
prototype before we release it. This will allow us to produce the best product we possibly
can. Through this evaluation process, we can then find out what to avoid in the future and
what we need to implement in order to make our product as flawless as possible.


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3.9 Functionalities
3.9.1. PRODUCT GROUPING PROCESS
Scan barcode
Display top list
3.9.2. PROTOTYPE TESTI NG PROCESS
Send/receive feedback to/from partners and customers
Update database record



3.10 Systems

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3.10. 1. BARCODE DETECTI ON SYSTEM This is a system which once the barcode is scanned, it
connects it to the accurate information on the product from the product information
system.

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3.10. 2. PRODUCT INFORMATI ON SYSTEM This system provides and stores data on each
individual product. It provides the consumer with the barcode information, whether it
qualifies as a top brand, information on palm oil policies (whether it is sustainable or not)
and information about whether the brand/company plans to become palm oil free.
3.10. 3. CUSTOMER MANAGEMENT SYSTEM This system analyses the most common
searches and scans by customers, which in turn correlates to the top list and provides
the customer with advice and alternatives to current brands. However, the system also
keeps track of customer feedback and opinions regarding the application.


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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)

Technology
and
Development
1. Product
grouping
process
1. Scan barcode

2. Display top list
Product information system

Customer management
system
Decision support system
2. Prototype
testing
process
1. Send/receive feedback to/from partners
and customers

2. Update database record
Customer management
system

Product information system
Customer Relationship
Management System

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CONCLUSION
A palm oil barcode scanner will provide consumers with the ability to indirectly combat
deforestation occuring due to the increased demand in Palm oil. The application operates in
an attractive industry due to high entry barriers as a result of our unique database.
The overall strategy is Focused Low Cost, and the value chain activity is Technology and
development and (R&D) due to the importance of providing accurate and up do date
information through an application that runs flawlessly.
Product information systems and Customer management systems are part of the decision
support system, and customer relationship management system which all contribute the
the success of the application.
This app has addressed many of the issues which the U.S based application did not, and as a
result I believe the application will thrive in the current industry.


REFERENCES

Legislation & voluntary commitments. (n.d.). Sustainable Palm Oil Platform. Retrieved May 25, 2014, from
http://www.sustainablepalmoil.org/consumers-retailers/retailers/legislation-and-voluntary-
commitments/
New Zealand Software Firms, Software Companies, Software Developers NZ 1. (n.d.). New Zealand Software
Firms, Software Companies, Software Developers NZ 1. Retrieved May 25, 2014, from
http://www.indexnz.com/Top/Computers-and-Internet/Software/Software-Firms
Palm Oil Guide and Scanner. (n.d.). App Store. Retrieved May 25, 2014, from
https://itunes.apple.com/us/app/palm-oil-guide-and-scanner/id682085035?mt=8
Palm oil, politicians and patience: where to from here for Unmask Palm Oil. (n.d.). . Retrieved May 25,

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2014, from http://www.unmaskpalmoil.com/post/77438274949/palm-oil-politicians-and-patience-
where-to-from-here
Sheil, D., Casson, A., Meijaard, E., van Noordwijk, M., Gaskell, J., Sunderland Groves, J., . . . Kanninen, M.
(2009). The impacts and opportunities of oil palm in south east asia. ( No. 51). Jakarta: Centre for
International Forestry Research.
WWF. (2014). Which everyday products contain palm oil?. Retrieved May 21, 2014, Retrieved from
http://www.worldwildlife.org/pages/which-everyday-products-contain-palm-oil