1

INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Songmi Park
NetID Spar899 (6399649)
Group Number: 275
Website Link: http://infosys1102014s1group275.blogspot.co.nz/p/d1.html
Tutorial Details
Tutor: Day: Time:
Kirsten Thursday 10am
Time Spent on
Assignment:
30 hours Word Count:
1556 including
titles

2
2

COMMITTED TO RESTRICTED
INTRODUCTION
NZ has an ongoing problem of restricted drivers illegally carrying passengers. Restricted
drivers are ten times more likely to crash when carrying a passenger (AA, 2013) but, no
solutions have been introduced to solve this issue. So, my company came up with a device
that solves this problem. When a restricted driver swipes their card through the device, the
kill switch will deactivate and the weight detecting mats will activate. So, when someone sits
down on the passenger seat, the sensors trigger the camera on the device to take a photo.
This photo then gets sent to the parent alerting them with the situation.
3. BUSINESS SECTION
3.1 Vision
To be the worlds most customer safety focused company that aims to create New Zealand's
roads to be free of restricted drivers carrying passengers and thereby create a safe
driving environment.
3.2 Industry Anal ysis: Driving Safety Devices Industry
The driving safety devices industry deals with improving the safety of drivers on the road
through safety devices.

Force: High/Low: Justification:
Buyer power:


Low The buyer power in NZ is low as there are less
than five NZ companies that customers can
choose from. Out of these companies, only
Smartrak, Ridnz and Tramigo sell safety products.
Thus, in NZ buyers have low power so they look
towards international companies such as Delphi.
3
3

Supplier power: High Companies that manufacture the components
needed in most safe driving devices such as
sensors and GPS systems are very common in NZ
today. Argus Tracking NZ, TRW, and Navman are
just to name a few.
Threat of new entrants: Low Coming up with new innovative safety devices
involves a lot of knowledge, time and money.
Delphi took more than 19 years to become
successful (Delphi Automotive, no date). Without
the three factors, it will be difficult to gain
competitive advantages so, the threat of new
entrants is low.
Threat of substitutes:

Low One possible substitute for safety devices are
driving instructors. People may choose to learn
about safety from an instructor. Statistics showed
that people who take driving courses are 10%
more likely to pass the full license test (AA, 2013).
However, there are no other substitutes that give
similar effects.
Rivalry among existing
competitors:
Low The rivalry among existing competitors is low as
there are only a few companies. Also, each
company focus on different safety products, e.g.,
Smartrak sells monitoring devices, Ridnz sells
alcohol detecting devices. Therefore, rivalry is not
high.
Overall attractiveness of the industry: Overall, the safety driving devices industry is an
attractive industry to work in according to the industry analysis. However, the industry may
not be extremely attractive as the level of demand for safety devices is low. People are
confident to drive without a device and are inattentive to safety issues on the road.
3.3 Customers and Their Needs
The target groups of customers for my device are parents. Statistics showed that, restricted
drivers are ten times more likely to crash when carrying a passenger" (AA, no date). This is
worrying parents constantly as they have no control over their children when they drive
alone. The need of the parent is to know whether their child is carrying a passenger or not
and who the passenger is without being over controlling. They are willing to keep their
children safe but, their needs have not been satisfied.
4
4


3.4 The Product and Service
By having the device, parents are able to know whether their child is illegally carrying a
passenger or not. When a passenger sits down, the weight sensors will trigger the camera to
take a photo. This photo will automatically get sent to the parents' phone or computer,
alerting them with the situation. The camera will meet the needs of wanting to know who the
passenger is and the sensors will prevent drivers carrying passengers. In this way, the
parents' needs will be met without being over controlling.
3.5 Suppliers and Partners
My business would need suppliers like Cardlogix that provide personalized cards and
activation products (Cardlogix, no date). Given that Cardlogix provides personalized service,
my business will find Cardlogix as a valuable supplier as we will need specifically designed
cards.
Thirdly, my device needs a small camera that will take a photo of the inside of the vehicle.
Companies like Nidec-Copal would be the ideal type of supplier as they offer cameras
designed for vehicle use (Nidec-Copal, no date).
One potential partner is the NZTA. The NZTA promotes safe driving and is with road safety.
By becoming partners my product will be advertised and NZTA will observe safer restricted
drivers on the roads. It will mutually benefit both of us.
One other potential partner are companies in the same industry, like Smartrak, as we share
similar values. By becoming partners, we will be able to create products involving a share of
each of our unique skills and ideas. In this way, more effective devices will be created which
will provide benefit to both partners through shared revenue and recognition.
3.6 Strategy: Focused low cost
The competitive scope of my product is narrow and focused as the device only targets
parents with teenage children who have restricted licenses.
The cost strategy of the product is low. The vision states that we aim to make NZ roads free
of illegal restricted drivers. In order to achieve this, the device should be made accessible by
all families.
3.7 Value Chain Acti vity: Technology Devel opment (R&D)
The vision is to focus on customer safety. Through technology development, the company
will be able to research and develop new ideas regarding the quality and function of the
device to provide safer driving experiences. By adapting to the newest technologies,
increasing customer demands will be met, causing more people to buy the device. This will
gradually reduce the number of illegal restricted drivers and help achieve the vision of
creating our roads to be free of illegal restricted drivers.
3.8 Business Processes
5
5

3.8.1. MARKET RESEARCH PROCESS - This process will inform the company about how
well an idea will be accepted by the public. The process begins by defining the research
objective, then planning, collecting and reporting follows. This process is the first part of
developing a new product as it informs the company of whether the product will be worth
making or not through researching customer opinions and market situations. So, the
company will have a good idea of what is needed and demanded.
Start
Define Research
Objective
Examine Secondary
Data
Are there
secondary data
available to
provide all the
needed data?
Plan research
design/format
Obtain secondary
data
Collect data
Analyse data
Report results
End
Yes
No
Secondary data
analysing system
Information Systems and
Management department
Research & Development
Department
Research Management
System


3.8.2. PRODUCT DESIGN DEVELOPMENT PROCESS - This process serves to develop the
product design by making prototypes and testing the prototypes to see if it works. This
6
6

process is based on the vision being customer focused as it involves customers by obtaining
their feedback and as it is a process to articulate the design to meet customer demands. The
worries of parents will decrease causing less illegal restricted drivers on the road. This
process is a major process in technology development as it is a crucial process in
developing a new product.
Start
Design Product
Create prototype
Design
modification
needed?
End
No Validation
Obtain customer
Feedback about
prototype
Test prototype
Manufacturing
Department
Prototype processing
system
Yes
Did the
manager's
approve of the
design?
Yes
No
Design Processing
System
Product development
department
Analyse feedback

3.9 Functional iti es
3.9.1. MARKET RESEARCH PROCESS
Plan research method.
7
7

Analyze market data.
3.9.2. PRODUCT DESIGN DEVELOPMENT PROCESS
Design product.
Analyze customer feedback for product.
3.10 Systems

3.10.1. CUSTOMER FEEDBACK ANALYSING SYSTEM This system incorporates the
functionality of analyzing feedback by obtaining direct customer response. Through this
system we are able to know how customers would feel about the product and gain ideas for
improvement based on their needs. This emphasizes the companys vision being customer
focused. Also, this system allows the product to improve, make them more effective and
eventually support the vision of having NZ free of restricted drivers carrying passengers.
3.10.2. RESEARCH MANAGEMENT SYSTEM - Planning the research method is an
important functionality within the research management system as it determines and guides
the research to fall in line with the vision. The research methods for this company will involve
customers as the company is customer-focused. The research will also identify potential
improvements to develop an effective product and create NZ roads to be free of illegal
restricted drivers. In this way, the planning functionality is incorporated in the research
management system.
3.10.3. DESIGN PROCESSING SYSTEM The functionality of designing the product gets
incorporated into the design processing system as a major interactive component. It is
important that the design aims to provide safer driving experiences to customers through
effective and feasible designs. Therefore, this system majorly focuses on safety issues and
customer needs which act to support the vision.
8
8

3.11. Summary Table: Value Chai n to Systems

Value
Chain
Activity
Processes Functionalities Specific
Information
System(s)
Broad
Information
System(s)

Techno
logy
Develo
pment
(R&D)
1. Market
Research
process
1. Plan research method


2. Analyze market data.
Research
management
system

Market data
analyzing
system
Transaction
Processing
System

Decision
Support
System
1. Product
Development
process
1. Design product


2. Analyze Customer
Feedback.
Product design
processing
system

Customer
feedback
analyzing
system
Transaction
processing
system

Decision
Support
system
9

9
CONCLUSION
In conclusion, the device satisfies parents/caregivers as well as decreasing the rate of
restricted drivers carrying passengers. The business idea was to create a device that will
meet the needs of parents wanting to know whether their child is driving under safe
conditions or not. The business will be successful if its systems and activities are well-
aligned with the vision. Thus, IS/IT is very important in constructing and managing the
overall systems, processes and value chains within the company.
REFERENCES
The New Zealand Automobile Association Inc. (n.d.). How parents can help young drivers.
Retrieved from http://www.aa.co.nz/about/safety-on-the-roads/safer-drivers/young-
drivers/how-parents-can-help-young-drivers/
NZ Transport Agency. (2011). New tools to help parents battle the biggest killer of NZ teens.
Retrieved from http://www.nzta.govt.nz/about/media/releases/1245/news.html
Delphi. (n.d.). Safety Electronics. Retrieved from
http://delphi.com/manufacturers/auto/safety/passive/
Delphi. (n.d.). Active Safety. Retrieved from
http://delphi.com/manufacturers/auto/safety/passive/
Intelligent Mechatronic Systems. (2014). Young Drivers. Retrieved from
http://www.intellimec.com/young-drivers-intelligence-2/
Ridnz. (n.d.). Alcohol ignition interlocks. Retrieved from
http://www.ridnz.co.nz/interlocks.html
Smartrak. (n.d.). Safety and security. Retrieved from
http://www.smartrak.co.nz/info/safety.aspx
The New Zealand Automobile Association Inc. (n.d.). Driving test pass rates nationwide.
Retrieved from http://www.aa.co.nz/drivers/driving-school/driving-lessons/driving-test-pass-
rates-nationwide/
Cardlogix. (n.d.). All Products. Retrieved from http://www.cardlogix.com/products/
Nidec-Copal. (n.d). Optical Components. Retrieved from http://www.nidec-
copal.com/02/01.html