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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name William Teng
NetID wten567
Group Number: 242
Website Link:
http://infosys1102014s1group242.blogspot.co.nz/p/blog-
page.html
Tutorial Details
Tutor: Day: Time:
Kit Wah Wednesday 12pm
Time Spent on
Assignment:
10 hours Word Count:
Less than 1650
words (i.e. 1500 +
10%)

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PREINSTALLED BREATHALYZERS IN MOTOR VEHICLES
INTRODUCTION
How can a night out with friends end with disaster? New Zealands Health Promotion
Agency (2007) has shown that New Zealand is guilty for having a binge drinking culture, that
has subsequently affected our behaviour on the road. It is too simple for an intoxicated
individual to get behind the wheel and operate a vehicle without adequate awareness,
potentially causing road accidents on roads that is shared with the public.
Thus, the problem lies with the lack of barriers that prevent drink driving from occurring. So
the solution of a built-in breathalyzer switch in series with the ignition process in the vehicle
was proposed, to set up a physical barrier to effectively prevent an intoxicated individual to
operate the vehicle. The ignition circuit can only be connected if the driver passes the
breathalyzer test.
3. BUSINESS SECTION
3.1 Vision
To provide accident-free transportation networks for the entire worlds public to enjoy.
3.2 Industry Analysis: Medical Device Industry
Industry: Medical Device Industry. The breathalyzers are produced by medical device
manufacturers in the medical device industry which are then distributed to vehicle
manufacturers for installation. Breathalyzers are considered a medical device because they
diagnose a persons health condition.
Force: High/Low: Justification:
Buyer power: Low Car manufacturers are the buyers in the
breathalyzer case. They can have alternative
intoxication tests such as a question that proves

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sobreity similar to the application design
mentioned in The Internship, Levy (2013)
However for the industry, buyers do not have
many alternatives from medical devices unless
they avoid modern medicial treatment since
medical devices are applied in almost all modern
medical practice, thus buyer power is low. WHO
(2014) explain that medical devices are
commonly used in modern medical practice as
they can be as simple as a thermometer.
(WHO, 2014)
Supplier power: Low Medical devices can be funded by third parties
which Mangan (2013) reports of online
crowdfunding for medical devices and in NZ, we
have PHARMAC which provides funding for health
professionals, so medical device manufactuers do
not need to bargain with suppliers therefore
bargaining power of suppliers is low. (Mangan,
2013)
Threat of new entrants: High According to WHO (2013) various medical
techonlogies and devices enter the market
annually as entry barriers are often reduced by
third-party or government funding, thus the
threat of new entrants is high. (WHO, 2013)
Threat of substitutes: Low Abpischools (2004) notes that there are
alternatives from using medical devices such as
traditional herbal treatment for customers,

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however in modern day society, modern
conventional medicinal practice would use
medical devices therefore the risk of substitutes
is low. (Abpischools, 2004).
Rivalry among existing
competitors:
High There is high existing rivalry within the medical
devices industry. As ITA (2008) explains, the
funding for medical devices has doubled since the
previous decade in USA to increase their
innovative progress to gain competitive
advantages in the world market. (ITA, 2008).
Overall attractiveness of the industry: The profitabilty is likely to be high which Medical
Products Outsourcing (2013) reports as a mulitbillion dollar industry, therefore the medical
device industry is considered to be attractive. Buyer and supplier power are in favour of the
industry and it is only normal for medical science to be competitive for the better of
modern society that relies on modern medicine; and new entrants join in the industry with
new technologies which further increases the rivalry.
3.3 Customers and Thei r Needs
The customers that the breathalyzers are intended for are automobile manufacturers to
install in their motor vehicles during assembly. This is would increase the value of their
vehicles due to the additional safety measures and to give their products a competitive
advantage in the market.
The automotive industry is a relatively competitive industry therefore when a competitor
gains a competitive adcantage, other competitors would also want to maintain their market
share and see this as a threat so they would be quick to copy the new feature. A historical
example of this happening as seen on General Motors (2014) is the Anti-lock braking system
(ABS) which Nissan and General Motors introduced in the 1970s and now it has become a
standard for the automotive industry to have in its products.

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3.4 The Product and Service
The breathalyzer system is expected to be adopted by the intended target market of
automotive manufactuers due to the nature of the automotive industry where safety is an
important KPI, thus they want to reduce the number of fatalities and causalties associated
with their vehicles to attract customers which is why automotive manufacturers put out
newer models with more safety features every year as Gorzenaly (2012) indicated.
The breathalyzer system will thus be a highly attractive product as it adds another safety
feature which would reduce the number of road accidents associated with the
manufacturers automobiles so if one manufacturer began using it, its competitors would
follow suit in order to also gain a competitive advantage that is needed in the market and to
retain their market share.
3.5 Suppliers and Partners
PHARMAC is appointed by the government to manage medicine in NZ which would work in
partnership with the breathalyzers being produced and installed. PHARMAC also plays the
role of the supplier as they fund and supply resources for medical applications.
Automotive manufacturers would be the intended customers but also key partners as the
breathalyzer system would be need to be integrated into their products' design
specifications, thus they would need to collaborate to make the products integrate.
The actual raw materials required to make the breathalyzers would require both medical
components and electrical components which means organisations such as Qosina would be
a supplier as they offer medical device components.
3.6 Strategy: Cost Leadership
Because this breathalyer system is encouraged to be implemented into cars, it would
receive greater acceptance if it was cheaper for manufacturers to purchase therefore the
Cost Strategy would be low and since the system is intended for all car manufacturers to use
the Competitive Scope would be broad.
The overall strategy is therefore Cost Leadership.

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3.7 Value Chain Activity: Service after Sale
The most important value chain activity for this business is Service after Sale.
The breathalyzers material procurement is arranged by its suppliers, and once the products
are made, they are distributed to the car manufacturers. The biggest issue would therefore
not be concerned with buyers and sellers but rather the end users, the automobile drivers.
Since the breathalyzer is linked to the ignition, if the breathalyzer was to fail, it would
render the vehicle unusable thus regular maintenance checks are needed which can be
integrated with WOF.
3.8 Business Processes
3.8.1. COMPONENT INTEGRATION PROCESS - A crucial process for the purpose of the system
to function by checking if the breathalyzer will work in conjunction with the car's ignition
system. If the ignition system cannot receive or recognise the signal from the breathalyzer
then the vehicle would not be able to work even if the driver was sober.

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3.8.2. USABI LITY ASSURANCE PROCESS If the ignition system is unable to be used because
the breathalyzer stage of the process if faulty, then that renders the entire vehicle unusable,
therefore, it is important that after installation that the breathalyzer will work correctly for a
reasonable amount of time. The Quality Assurance System will measure the time the KPI of
average number of customer complaints and the lifespan of use of the breathalyzer unit and
compare the results over a period of time.


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3.9 Functionalities
3.9.1. COMPONENT INTEGRATION PROCESS
Recording Errors, to find trends on what sections require reengineering
Testing Prototype, to test for requirements before entering the market
3.9.2. USABILITY ASSURANCE PROCESS
Measuring Stability, compares to KPI of sustainability
Providing Service After Sale, works in conjunction with WOF tests to keep the
breathalyzer system usable by the customer
3.10 Systems

3.10. 1. ERROR ANALYSIS SYSTEM The product should be error-free for customers to use
therefore during the development stage, the errors are recognised and sent to the R&D
department to solve. This system would incorporate a database linked to the Error
Recording System to store all the errors and changes to the product, in case an alteration
worsened the product so that the design can be returned to a previous checkpoint.
3.10. 2. FEEDBACK PROCESSING SYSTEM When the product is being used by customers,
there is the chance of product failure therefore feedback has to be received to fix the issue
and also to serve as a basis for benchmarking against its sustainability.
3.10. 3. REPLACEMENT MANAGEMENT SYSTEM As part of the Usability Assurance Process,
the breathalyzer ignition system could get damaged, have a problem with the unit or reach
the end of its lifecycle thus a replacement would be required to continue using the vehicle.
This system would register order requests, check inventory, prepare invoices and process
the payment.



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3.11. Summary Table: Value Chain to Systems
The summary table is complete and consistent with the items identified in the written section.

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

Service
After Sale
1. Component
Integration
Process
1. Recording Errors.

2. Testing Prototype.
Error Anal ysis System


Transaction Processing
System
2. Usability
Assurance
Process
1. Measuring Stability.


2. Providing Service After Sale.
Feedback Processing System


Replacement Management
System
Customer Relationship
Management

Supply Chain Management

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CONCLUSION
The breathalyzer ignition system will help decrease alcohol-related road accidents by
physically disabling the ignition system if the driver is intoxicated. Information systems add
value when incorporated into the development and maintenance of the product by
recording errors with Error Analysis Process and measuring against KPIs such as
sustainability and usability to develop the product while other systems such as Feedback
Processing Systems and Replacement Management Systems are in place to maintain the
most important value chain activity of Service After Sale, so that the products remain
operational and continue to benefit society.
REFERENCES

1. Health Promotion Agency. (2007). The Culture of Drinking in New Zealand. Retrieved from
http://m.alcohol.org.nz/sites/default/files/useruploads/Resourcepdfs/SCAoA_Chp1.pdf
2. Levy, S. (Director). (2013). The Internship [Motion picture]. America: Wild West Pricture
Show Productions
3. Erickson, K., & Cole, P. (2010). Industry and Market Analysis. Retrieved from
https://wiki.engr.illinois.edu/display/BIOE414/Industry+and+Market+Analysis
4. World Health Organisation. (2014). Medical Devices. Retrieved from
http://www.who.int/mediacentre/factsheets/fs346/en/
5. PHARMAC. (2014). PHARMAC and Hospital Medical Devices. Retrieved from
http://www.pharmac.health.nz/medicines/hospital-devices
6. Mangan, D. (2013). Crowdfunding for medical devices hits Web. Retrieved from
http://www.cnbc.com/id/100965824
7. World Health Organisation. (2013). Compendium of innovative health technologies for low-
resource settings. Retrieved from
http://apps.who.int/iris/bitstream/10665/108781/1/9789241564731_eng.pdf?ua=1
8. Medical Product Outsourcing. (2013). The Medical Device Top 30. Retrieved from
http://www.mpo-mag.com/heaps/view/551
9. International Trade Administration. (2008). Medical Device Industry Assessment. Retrieved
from
http://ita.doc.gov/td/health/medical%20device%20industry%20assessment%20final%20ii%2
03-24-10.pdf
10. General Motors. (2014). 1972 First Automotive Anti-lock Brake System (ABS). Retrieved from
http://history.gmheritagecenter.com/wiki/index.php/1972,_First_Automotive_Anti-
lock_Brake_System_(ABS)
11. Gorzelany, J. (2012). The Safest Cars For 2012. Retrieved from
http://www.forbes.com/sites/jimgorzelany/2012/01/20/safest-cars-for-2012/
12. Abpischools. (2004). History of Medicine. Retrieved from
http://www.abpischools.org.uk/res/coresourceimport/resources04/history

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13. QOSINA. (2014). Medical Disposable Components. Retrieved from
http://www.qosina.com/iso/isocert.asp