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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Matthew Brak
NetID Mbra603
Group Number: 100
Website Link: http://infosys1102014fcgroup100.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Claris Chung Monday 12pm
Time Spent on
Assignment:
28 hours Word Count: 1648

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SOLAR SAVERS
INTRODUCTION
Pollution and climate change resulting from fossil fuels being our primary source of power
worldwide has meant rising sea levels and more frequent natural disasters such as cyclones
and droughts. By integrating the current solar panel model with the latest research and
developments, we are able to create solar savers, a cheaper, more efficient photovoltaic
product. This makes the switch to renewable power a more economically realistic option for
New Zealand household and business owners, leading to a decrease in fossil fuels used
throughout the country as we do our part to make the world a better place.
3. BUSINESS SECTION
3.1 Vision
To reduce pollution and climate change globally by helping shape New Zealand into a
worldwide leader in renewable energy sources through the supply of affordable, economical
solar panels across the country.
3.2 Industry Analysis:
Industry: New Zealand Photovoltaic Industry. This is the industry of generating electrical
power by converting solar radiation into electricity.
Force: High/Low: Justification:
Buyer power: High The New Zealand market for photovoltaic
systems is relatively competitive indicates buyer
power is high since there are many solar panel
businesses for customers to choose from. This is
supported by there being a number of local
distributors. (IT Power Australia, 2009)

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Supplier power: Low Supplier power is low as firms in the photovoltaic
industry have many options as to who they buy
from, as there are more than 100 cell
manufacturers, 300 module manufacturers and
80 thin film manufacturers, meaning supply is
beginning to outstrip demand. (IT Power
Australia, 2009)
Threat of new entrants: High There are low barriers to entry since the
installing of photovoltaic systems only requires
a registered electrician. Consequently, there
have been 3 new entrants recently, showing
the threat of new entrants is high. (IT Power
Australia, 2009)
Threat of substitutes: High There are many substitute products to
photovoltaic systems that also create renewable
energy such as hydro, geothermal and wind
which generate two-thirds of New Zealands
electricity. (New Zealand Trade and Enterprise,
2011).
Rivalry among existing
competitors:
High PV distributors put the number of companies
active in the implementation of solar PV systems
as high as 200. Therefore, there is fierce
competition in the photovoltaic industry, as they
compete for market share. (IT Power Australia,
2009)

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Overall attractiveness of the industry: The industry is not attractive as rivalry is high and
could increase further due to the threat of new entrants. In 2011, substitutes proved more
attractive as two-thirds of New Zealands electricity was generated from hydro,
geothermal and wind sources. (New Zealand Trade and Enterprise, 2011). Therefore,
customers have many options, leading to an unattractive industry.
3.3 Customers and Thei r Needs
Solar power appeals to many Kiwis wanting to save money and generate their own
electricity. As a roof is required to install solar savers, our target group of customers are all
business and home owners. Currently, most potential customers think that costs
overshadow virtues of switching to solar, with two of these virtues being to help the
environment and save money. Therefore, customers require an environmentally friendly
solar system that is cheap and minimises money spent on power from the grid (Underhill,
2014).
3.4 The Product and Service
By integrating the current photovoltaic system with the recently developed, readily
available tungsten-based absorber, we can create a product that absorbs sunlight and
transforms it into power with an efficiency rating of 80% compared to the average 35% we
see today (Whitwam, 2013). This increased efficiency means more solar power is generated
from the same level of sunlight, leading to a decrease in money spent on power from the
grid which is what consumers wanted. Due to the high availability of cheap tungsten
material, we can reduce costs and pass these savings on to consumers in the form of lower
prices. This overcomes the primary obstacle keeping household owners and businesses from
investing in solar panels, while maintaining its environmentally friendly appeal.
3.5 Suppliers and Partners
A partner of ours would be an organisation that promotes the use of solar power and
educates people about the benefits, such as Solar Action - the New Zealand Renewable
Energy Society Incorporated. They can achieve their goal as solar power can now be
promoted as a cheaper alternative to power from the grid, while helping us by advertising

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our product. Another partner would be tungsten based absorber developers, as we create a
new market for their product, and they supply us with the material that reduces our costs
and increases our products efficiency.
One of our suppliers would be a cell manufacturer such as Suntech, as cells are a necessary
component of a solar saver, as it allows them to absorb sunlight. Another supplier would be
a WiFi provider such as telecom, allowing us to communicate solar saver performance data
to us so key performance indicators can be measured.
3.6 Strategy: Cost Leadership
Solar Savers are a low cost good relative to other solar panels on the market because we are
using a tungsten based absorber. This material is cheap and readily available, decreasing
our costs of production compared to other solar panel systems (Science Daily, 2013).
Our market is broad as we are targeting all home owners and businesses with roofs,
covering the whole photovoltaic market. A wider range of households and businesses will
now consider buying a photovoltaic system due to the lower costs.
The overall strategy is therefore cost leadership.
3.7 Value Chain Activity: Technology development (and R&D)
The most important value chain activity for this business is technology development and
R&D.
The key for our business to gain a competitive advantage in the photovoltaic market is
through our low cost, but very efficient product. We are able to deliver this value by
researching how to integrate the tungsten based absorber into a photovoltaic system and
then developing this model, allowing us to offer a more affordable and economical product
to households and businesses throughout New Zealand.
3.8 Business Processes
3.8.1. PRODUCT DESI GN AND DEVELOPMENT PROCESS This is the process of incorporating
the new materials (tungsten based absorbers) into a regular solar panel to improve

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efficiency and reduce cost. A computerised design will be drawn and then a model made
based on this. The prototype must then be tested to see if it is operating at the planned
efficiency, and if not, the process must be repeated. The design and development process
creates our competitive advantage allowing us to achieve our vision, and is therefore one of
the most important processes carried out.


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3.8.2. PRODUCT PERFORMANCE RESEARCH AND I MPROVEMENT PROCESS This is the process
of obtaining information about the performance of solar savers throughout the country, and
comparing this collected data to benchmarked figures for efficiency. If the results are not
desirable, solutions must be found and implemented in order to make improvements to the
efficiency of solar savers, enabling us to work towards our vision. This process is important
to the business because it allows us to constantly try to increase our competitive advantage.
3.9 Functionalities

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3.9.1. PRODUCT DESI GN AND DEVELOPMENT PROCESS
Analyse the prototype test data
Generate a computerised design of the product
3.9.2. PRODUCT PERFORMANCE RESEARCH AND I MPROVEMENT PROCESS
Acknowledge that all data has been received over WiFi
Analyse the feedback data
3.10 Systems

3.10. 1. PRODUCT DESI GN SYSTEM Our product design system involves computer software
being used to support decisions made by our design department as they develop an
electronic model of the prototype. The computer-generated design formed from the
implementation of this system is the key to the competitive advantage we aim to create.
This happens since it uses the new materials necessary to reduce costs, therefore
contributing towards our vision of supplying affordable and efficient solar panels.
10. 2. PROTOTYPE TESTING SYSTEM The prototype testing system is in place to ensure the
product works and to measure the efficiency of the solar saver. This data is then processed
and compared with planned efficiencies from the computer-generated design, allowing
managers to make the decision about whether or not they should begin commercial
production of the product. This system is important because if it wasnt in place and
efficiency levels were not as high as planned, we would begin producing products that were
not as economical, preventing us from achieving our vision.
3.10. 3. DATA VI SUALI SATION SYSTEM - A data visualisation system assists employees with
analysis of the efficiency data of solar savers throughout the country as it provides them
with a visual display that is easier to understand. This helps them identify whether solar
savers are meeting benchmarked efficiencies. If they arent, this information can be passed
on to managers who can take action to improve performance. This system is important to
our vision, as without it, problems and irregularities in efficiencies would not be identified
and the quantity of renewable energy produced throughout the country could decrease.

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3.11. Summary Table: Value Chain to Systems

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

Technology
development
(and R&D)
1. Product
design and
developme
nt process
1. Generate a computerised design of the
product

2. Analyse the prototype test data
Product design system


Prototype testing system
Decisional support system


Decisional support system
1. Product
performanc
e research
and
improveme
nt process
1. Analyse the feedback data

2. Acknowledge that all data has been received
over WiFi

Data visualisation system



Decisional support system



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CONCLUSION
Our business integrates solar panels with the latest technology to develop a cheaper, more
efficient and economical product in the photovoltaic industry which meets customers
needs. With processes in place to enable the research and development of our product, and
information systems and technology being used to support these processes, we are able to
create value and therefore establish a competitive advantage. As this competitive
advantage appeals to consumers, we hope to increase the use of solar power across the
country, and help shape New Zealand into a worldwide leader in renewable energy sources.

REFERENCES


1. IT Power Australia (2009). Assessment of the Future Costs and Performance of Solar
Photovoltaic Technologies in New Zealand. Retrieved from
http://www.fivepower.co.nz/uploads/64136/files/PV_in_New_Zealand.pdf

2. New Zealand Trade and Enterprise (2011). The New Zealand Energy Sector. Retrieved
from
http://www.nzte.govt.nz/media/344115/the_new_zealand_energy_sector_report_fi
nal.pdf

3. Underhill, M. (2014). Mike Underhill: Costs overshadow virtues of switching to solar.
Retrieved from
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11215250

4. Whitwam, R. (2013). New nano-material could boost solar panel efficiency as high as
80%. Retrieved from http://www.extremetech.com/extreme/168811-new-nano-
material-could-boost-solar-panel-efficiency-as-high-as-80
5. Science Daily (2013). Breakthrough in Heat-Resistant Materials May Give Huge Boost
to Solar Panels. Retrieved from
http://www.libertyglobe.com/2013/10/16/breakthrough-in-heat-resistant-
materials-may-give-huge-boost-to-solar-panels/