1

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

2


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

3


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

4


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.

5


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

6


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.


7


7

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

8


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.

9


9


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

10


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.

11


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

12

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