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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Vidushi Challapali
NetID vcha646
Group Number: 137
Website Link:
http://infosys1102014fcgroup137.blogspot.co.nz/2014/04/infosys-
deliverable-1-group-137.html

Tutorial Details
Tutor: Day: Time:
Mira Lee Tuesday 2pm
Time Spent on
Assignment:
20 hours Word Count: 1650


















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DRAIN FILTERATION SYSTEM
INTRODUCTION
A problem that our world is facing today is rubbish pollution in the oceans. Litter is entering
our marine environment causing harm to marine life and ecosystems. Storm water drains are
pathways through which litter enters the sea. Rain causes small pieces of litter to flow down
drains, ultimately entering our oceans.
Our solution is a filtration system which senses and collects the rubbish in a cylinder, before
it enters the sea. The amount of rubbish collected is captured as data by the filtration
system, which is processed, stored and sent to the operator where it is analysed and
distributed to the public for educational purposes. It will be installed at the conjunction of
drain pipes.
3. BUSINESS SECTION
3.1 Vision
To protect and make a positive contribution to the worlds oceans and marine life by
reducing rubbish pollution in the seas to zero.
3.2 Industry Anal ysis: Marine Environmental Protection Technology Industry
Our firm is operating in the Marine Environmental Protection Technology Industry because
our product uses technology to protect the marine environment from litter.
Force: High /
Low
Justification
Buyer Power
:




Low As buyers have only two choices from whom to buy, as there
is only one other competitor in the industry called Ocean
Clean up Array which uses technology to remove plastic
waste from the oceans and educates the public by providing
information. (THE OCEAN CLEAN UP,2014).
Supplier
Power:
Low As the industry has many choices of suppliers from whom to
buy, as the industry mostly makes use of common materials.

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For example there are many suppliers of metal such as Steel
and Tube (Steel and Tube, 1954), Pipes NZ limited (Pipes NZ,
2014), and United Steel (United Steel, 2014). For sensors and
electrical equipment: Schneider Electric and Active Electrical
Suppliers Ltd (Active Electrical Suppliers Ltd, 2001). There are
many engineers and IT consultants available.
Threat of
Substitutes :
High As there are many alternative organisations such as Maritime
NZ, MarineBio Conservation and Sustainable Coastlines,
which are involved in protecting the marine environment.
Other substitutes include volunteer projects such as Auckland
regions coastal clean-up (Ecoevents, 2010), Waitemata
Harbour Clean Up (Watercare, 2010), Herne Bay Clean-up
project, Love your Coast Waiheke Island project (Sustainable
Coastlines, n.d.) which protect the marine environment.
Threat of
New
Entrants:
Low As there are significant barriers to entry such as the costs
associated with the high level of technology, research, hiring
specialists in fields of engineering, and IT. For example, there
was a high cost associated with the building of Ocean Array
device, as it required a team of 100 specialists. The project
required significant investment (THE OCEAN CLEAN
UP,2014).
Rivalry
among
competitors :
Low As there is only one other competitor called Ocean Clean up
Array and thus competition in the industry is complacent.

Evaluation: The Marine Environmental Protection Technology Industry is attractive. This is
because buyer power, rivalry among competitors, threat of new entrants and supplier power
are low. The industry is a sunrise industry as it is relatively new industry that is growing and
it is expected to be important in the future as the awareness of problem grows. Thus there is
potential for greater profits and growth for the industry. However, the threat of substitutes is
high. Nevertheless, by using technology to solve the problem the industry is finding long
term solutions to protect the marine environment. The substitutes are only offering short term
solutions.


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3.3 Customers and Their Needs
The target group of customers are city councils, such as Auckland Council.
The needs of councils are to stop rubbish from polluting marine environment as it has impact
on the recreational activities, business activities and tourism, to educate the public about the
impacts of rubbish pollution in oceans and to decrease costs of clean-up projects, so that
funds can be better spent on supporting local projects. For example Auckland council is
undertaking projects such as building Davenport library and Glen Innes music and arts
centre (Auckland Council, 2014).By decreasing spending on clean-up projects the council
can increase spending on community projects.
3.4 The Product
The filtration system collects the rubbish before it enters the marine environment satisfying
the councils needs of stopping the rubbish from entering the marine environment, thus
protecting the interests of the public and businesses that depend on marine environment for
their livelihood. By stopping the rubbish from the drains entering the marine environment it
also decreases the clean- up costs so that funds can be spent on other projects.
The amount of rubbish collected is captured as data by the system which is processed,
stored and distributed to the public for educational purposes, satisfying the need of the
council to educate the public.
3.5 Suppliers and Partners
The suppliers of metal and pipes for our product are Steel and Tube (Steel and Tube, n.d.)
and Pipes NZ Ltd (Pipes NZ, 2014) and the suppliers of sensors and electrical equipment
are Schneider Electric (Schneider Electric, n.d.) and Active Electrical Suppliers Ltd (Active
Electrical Suppliers Ltd, 2001). These companies are suppliers because they supply
equipment to build our product in return for payment.
City councils, specifically Auckland and Wellington councils could be our partners, as they
could give us consent to install our product at the conjunction of drain pipes, promote our
product and publish information about the rubbish collected on their website to educate the
public and in return, we can sell the product to them at a lower price, which would decrease
costs for councils. Another partner could be universities such as University of Auckland and
University of Otago. Through this partnership the universities can gain benefit of good

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publicity from their students working on projects and we could benefit from their expertise
and skills.
3.6 Strategy: Narrow market focused high cost
Our target customers are city councils, as councils have a need for this product, thus the
competitive scope is narrow market. The cost strategy is high cost, as the cost of production
is high as the cost of the materials, technology, and research is high. Therefore in order to
cover our high cost of production and make a profit we will sell it at a high price. Therefore
the strategy is narrow market focused high cost.
3.7 Value Chain Acti vity:
The most important value chain activity for our business is procurement, as our vision is to
make a positive contribution to the marine environment by reducing the rubbish pollution at
sea to zero. Our strategy is narrow market focused high cost. In order for us to achieve this
vision and charge a high price, we need to produce a durable high quality product that
delivers value by preventing rubbish from the drains entering the sea. Therefore, we need to
use premium materials and technology sourced from suppliers. Procurement also adds
value to our organisation as it increases customer satisfaction thus securing future profits.
3.8 Business Processes
3.8.1. Inventory ordering process is important for the business, as it supports the
procurement of high quality materials by identifying the required equipment, creating
a purchase order, receiving materials and sending the payment. It also ensures that
the materials are received on time, in specification and in full, thus ensuring the
manufacturing process and subsequently the delivery process occurs on time. This
ensures high customer satisfaction.



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3.8.2. Payment management process is important as we need to ensure that our
suppliers are paid on time to guarantee a good relationship between the suppliers
and the organisation. This is important to our business because in order to produce
high quality products, we need to use premium materials. Thus maintaining a strong
relationship with suppliers ensures that they continue to supply us premium
materials, enabling us to produce high quality product that satisfies the customer.





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Start
Receive materials and
equipment
Receive invoice
Send payment
Receive receipt of payment
Document the receipt
End
Check the quality and
quantity of materials
Inventory management
system
Accounting

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3.9 Functional iti es
3.9.1 Inventory ordering process
create a purchase requisition
create and send a purchase order
3.9.2 Payment management process
check if the received materials match the order
send payment
3.10 Systems

3.10.1. Materials management system enables managers to examine and
manipulate data from internal sources to identify the materials needed and create a
purchase order. It manages the materials which are important in producing a high
quality product which supports the vision.
3.10.2. Accounting system supports the funtionality of sending payments which is
important as it ensures that suppliers receive their payment on time. This guarantees
a good relationship with suppliers which ensure that they continue to supply premium
materials, enabling us to produce high quality products that satisfy customers.
3.10.3. Inventory ordering system supports the purchase of the order and inventory
ordering process by ensuring that the materials are on time, in specification and in
full, which ensures that the subsequent process are completed on time which
decrease costs for the business as the equipment is not ideal and ensures that the
customer receives a premium product on time, thus increasing the customer
satisfaction.

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3.11. Summary Table: Value Chai n to Systems

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

Procurement
1. Inventory
Ordering
process
1. create a purchase requisition
2. create and send a purchase order

inventory/materials
management system
Inventory ordering
system



Decision Support
System
2. Payment
management
process
1. Check if the received materials
match the order
2. send payment

accounting system
inventory/materials
management system


Transaction
Processing
System


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CONCLUSION
Marine Environmental Protection Techonology industry is an attractive as it is a new
industry that is growing and is expected to be important in the future. The strategy is narrow
market focused high cost as the customers are city councils and procurement is the most
important value chain activity, as it improves customer satisfaction and generates growth for
the business. Inventory ordering, accounting and materials management systems support
the inventory ordering and payment processes. The value of these systems is that it
increases efficieny by decreasing costs and increases productivity thus enabling the
business to achieve its vision.
REFERENCES

1. The ocean clean up: concept. (2014). Retrieved from
http://www.cite.auckland.ac.nz/index.php?p=quickcite
2. Inhabitat: Design will save the world. (2014). Retrieved from http://inhabitat.com/19-
year-old-student-develops-ocean-cleanup-array-that-could-remove-7250000-tons-of-
plastic-from-the-worlds-oceans/ray-collection/
3. Steel and Tube. (n.d.). Our products. Retrieved from
http://steelandtube.co.nz/product
4. Pipes NZ Ltd. (2014). Products. Retrieved from http://www.pipesnz.co.nz/products/
5. United Steel. (2013). Products. Retrieved from http://www.unitedsteel.co.nz/products/
6. Active Electrical Suppliers Ltd. (2001). Active Electrical industry veterans committed
to doing things better for the industry. Retrieved from
http://www.goactive.net.nz/about
7. Maritime NZ. (n.d.).Marine Environmental protection. Retrieved from
http://www.maritimenz.govt.nz/Environmental/Marine-environmental-protection.asp
8. Greenpeace NZ.(2014). The Latest Updates. Retrieved from
http://www.greenpeace.org/new-zealand/en/
9. Ecoevents. (2010). Coastal Clean-up. Retrieved from
http://www.ecoevents.org.nz/coastal-clean-up
10. Watercare. (2010). Watercare Harbour Clean-Up Trust. Retrieved from
http://www.watercare.co.nz/community/cleanup_trust/Pages/default.aspx
11. Project Jonah NZ. (n.d.). Herne Bay Clean-up project. Retrieved from
http://www.projectjonah.org.nz/News/Herne+Bay+Cleanup.html

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12. Sustainable Coastline. (n.d.). Love your Coast Waiheke Island project. Retrieved
from http://sustainablecoastlines.org/event/love-your-coast-waiheke-island/
13. Auckland Council. (2014). Plans, Policies and Projects. Retrieved from
http://www.aucklandcouncil.govt.nz/EN/PlansPoliciesProjects/CouncilProjects/Pages/
Home.aspx?utm_source=shorturl&utm_medium=print&utm_campaign=Projects