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This document proposes a solution to problems with New Zealand's public transportation payment system using AT hop cards. The proposal suggests embedding a chip in mobile phones that would automatically charge fares when riders board and depart vehicles, eliminating the need to tag cards on and off. The chip would use sensors on vehicles to detect boarding and exiting in real time. This would create a more efficient transportation system by saving time, avoiding penalties for forgotten tags, and processing multiple riders simultaneously. The document outlines the business case for this idea, including market analysis, customer needs, suppliers, cost leadership strategy, and systems required to implement the mobile payment process.
This document proposes a solution to problems with New Zealand's public transportation payment system using AT hop cards. The proposal suggests embedding a chip in mobile phones that would automatically charge fares when riders board and depart vehicles, eliminating the need to tag cards on and off. The chip would use sensors on vehicles to detect boarding and exiting in real time. This would create a more efficient transportation system by saving time, avoiding penalties for forgotten tags, and processing multiple riders simultaneously. The document outlines the business case for this idea, including market analysis, customer needs, suppliers, cost leadership strategy, and systems required to implement the mobile payment process.
This document proposes a solution to problems with New Zealand's public transportation payment system using AT hop cards. The proposal suggests embedding a chip in mobile phones that would automatically charge fares when riders board and depart vehicles, eliminating the need to tag cards on and off. The chip would use sensors on vehicles to detect boarding and exiting in real time. This would create a more efficient transportation system by saving time, avoiding penalties for forgotten tags, and processing multiple riders simultaneously. The document outlines the business case for this idea, including market analysis, customer needs, suppliers, cost leadership strategy, and systems required to implement the mobile payment process.
Name Olivia Tallott NetID 8469110 Group Number: 073 Website Link: http://infosys110groupxxx.blogspot.co.nz/ Tutorial Details Tutor: Day: Time: Mira Lee tuesday 9am Time Spent on Assignment: 12 hours Word Count: 1421
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2 PUBLIC TRANSPORT GETS EASIER INTRODUCTION Public Transport is used globally every single day and is fast, convenient and accessible for everyone to use. In New Zealand we have recently updated to AT hop cards in order to improve the transportation system however new problems have come up with these cards. The AT hop card is a problem because there have been many complaints of passengers forgetting to tag on and off which results in a fee which could be up to $20 depending on how far you travelled and the service you used. The solution is it all gets done automatically with a chip in your phone. A signal is sent out as soon as you hop on the bus and pass the censors and when you reach your stop and get off the chip sends out a signal to the computers at the AT company tagging you off. 3. BUSINESS SECTION 3.1 Vision To provide the most simple and convenient option to access and use public transport that is time efficient and is satisfactory to the customer. 3.2 Industry Analysis: Public transport Industry Industry: Public Transportaion industry including all busses trains and ferries, all will acsept the chip. Force: High/Low: Justification: Buyer power: High There are lots of companies out their that can maufacture the chip we would need. We dont need a specific chip maufacturer for our product.
Supplier power: low There are many companies to choose from that could maufacture the chip we need. Companies want to make as much revenue as possible.
Threat of new entrants: low People are used to something the often dont like change. When they get used to a product it is hard for people to switch. It is also an expensive industry to get involved in.
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3 Threat of substitutes: low Public transport is used everyday and the only alternative is to drive. You either drive your own car of take one of the pubic transport options.
Rivalry among existing competitors: low The only options at the moment are the AT hop card or paying cash. As these are the only products the transportation industry is not very competitive. Overall attractiveness of the industry: Despite the recent addition of the AT hop card in the Auckland transport industry, it has proven to have problems and is not as successful as planned. With a new simple time efficient option it will be very attractive to the public. 3.3 Customers and Thei r Needs Public Transport is used globally every single day. Customers want service/product that is easy to use and time efficient. At the moment with the AT cards you have to stop and tag on with your card and only one person can go at a time whereas with our solution the censors on the bus can pick up multiple signals from the chips in peoples phones so many people can board the bus. Many transactions can occur at the same time. Our target group of customers are people that use public transport daily and what an eaiser way to use it. Our product will fulfil customer needs because it cuts down the total travelling time as people can get on much more easily and this way people can also top up their accounts on their phone by either texting a number as you would do for a regular phone top up. 3.4 The Product and Service Our product is a chip that will be placed on your phone that will allow you to just walk on and off busses and trains without using cards. It will allow people to just walk on the bus and makes it time efficient. It takes away the stress or anxiety of losing your bus card or having to get out your AT hop card before the bus arrives. 3.5 Suppliers and Partners Our first supplier will need to be a company that can manufacture these chips that ill fit into all phones. We would need a second supplier for the censors that will be placed on the transport to read the chips. Partners would be the distributers such as Apple App Store; Samsung Apps etc. partners would also be the Auckland public transport sector as they have the information for the fares for different routes. 3.6 Strategy: Cost leadership
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4 We are targeting a broad market with our chip. Anyone can use our product you dont need to frequently use public transport to have the chip. Our product makes using public transportation easier and more pleasant for customers. Our product will be very affordable. Costs ill just include topping up, which will be just like topping up your phone. Therefore the strategy would be Cost leadership. 3.7 Value Chain Activity: Operation As our idea is all based on the chip that will be inserted into phones. The most important value chain activity will be Operations (making and assembling the product). The manufacturing of the chips is the most expensive part and the most time consuming. 3.8 Business Processes 3.8.1. BUSINESS FACING PROCESSES Business facing process invloves startegic planning, tactical planning, budget forcasting and purchasing raw materials. These are all core parts of our product.
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3.8.2. CUSTOMER FACI NG PROCESS customer facing proces involves ordering process, customer services, sales process, customer billing and order shipping.
Start Strategic Planning Tactical Planning Budget Forecasting Purchasing raw materials END
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Start Ordering process Customer services Sales process Customer billing END Order shipping
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7 3.9 Functionalities 3.9.1. MARKETING AND SALES PROCESS Processing sales Attracting customers to use our product over the AT hop card or uing coins 3.9.2. OPERATI ONS MANAGMENT PROCESS Ordering inventory. Manufacturing our product 3.10 Systems
3.10. 1. TRANSACTION PROCESSI NG SYSTEMS - This is the system that supports the operation through which our product is designed, marketed, produced and delivered.it helps to keep track of our customers and to look at data from our chips. 3.10. 2. CUSTOMER RELATIONHIP MANAGMENT SYSTEM it is important to keep customers happy and satisfied with the product. This helps the customer to ensure that everythinng goes smoothly. It updates the customers on new updates and deals. 3.10. 3. SUPPLY CHAIN MANAGEMENT SYSTEM helps to manage the flow of goods and to engage with the supplier. Helps to ensure we keep tabs on our products right from the beginning and ensure we are on the same page as those supply our company.
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8 3.11. Summary Table: Value Chain to Systems
Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s)
Operation 1. Marketing and sales 1. Processing sales
2. Attracting customers to use our product over the AT hop card or using coins Managerial support system
Managerial support system Customer relationship management system
Customer relationship management system
2. Operations managment 1. Ordering inventory
2. Manufacturing the product Executive information system
Operational support system
Collaboration processing system
Enterprise resource planning system
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9 CONCLUSION Our product addresses all underlining problems with the transportation system such as time, lost cards and creates a more efficient transportation system via buses. Our chip that will be inserted into phones will mean no more cards or coins or no extra charge for forgetting to tag off. All you have to do is walk on and off the transport and the censors will read your chip. The app on your phone allows you to keep tabs on you transport and makes it easy to top up just like a phone. REFERENCES
1. Local Bulletin. (2014). Hop Card Review: More Stress and Hassles than Savings [Web blog]. Retrieved from http://www.localbulletin.co.nz/hop-card-review-stress- hassles-no-savings/ 2. Sergel M. (2013, September 23). Public transports biggest issue for Auckland voters. Retrieved from http://www.newstalkzb.co.nz/auckland/nes/regak/1956420566- public-transport-biggest-issue-for-auckland-voters