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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Sam Hambling
NetID sham650
Group Number: 004
Website Link: http://infosys1102014s1group004.blogspot.co.nz
Tutorial Details
Tutor: Day: Time:
KitWah Tuesday 10am
Time Spent on
Assignment:
20 hours
Word
Count:
1649

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LSWATCH LIFE SAVING TECHNOLOGY
INTRODUCTION
The field of combat is a dangerous environment. A harrowing experience on the battlefield
is death and wounding resulting from fire from ones own troops. Fratricide is devastating
for the parties involved. The effective committing of manslaughter is psychologically
traumatising for the person who pulled- the trigger. The family of the deceased is angered
at unacceptable loss. The soldiers comrades are put in jeopardy by the loss which could
affect their mission and may also face emotional issues in dealing with the event. The
LSWatch is a smartwatch that utilises GPS and Bluetooth to provide accurate location data
of wearers in the vicinity. This allows friendly combatants to be easily identified in noisy,
hazardous environments with low visibility. The LSWatch monitors the pulse of the wearer.
If the pulse is low, the soldier is assumed unconscious and is displayed as such to other
friendly soldiers. If the soldier has no pulse, they are also displayed as such. There is
potential to incorporate other technologies into the LSWatch such as communicators,
translators etc.
3. BUSINESS SECTION
3.1 Vision
To improve the combat environment by eliminating fratricide and providing combatants
with accurate location information of allied soldiers and civilians.
3.2 Industry Analysis: Defence Industry
Global Defence Industry:
Force: High/Low: Considerations/ Justifications:
Buyer power: High (due
to the
buying
power of
the US
Govt.)
The US Government is the major
purchasor of military
hardware/equipment spending $640
billion in 2013 (representing 36.6% of total
military spending) (Solmirano, 2013, p. 2).
This gives the US government high buyer
power. Lockheed Martin, one of the
leading defence contractors, earned over

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Force: High/Low: Considerations/ Justifications:
85% of its revenue from the US
Government in 2011 (Gertje, 2011) .
Switching costs are high due to the need
for training on different pieces of
equipment.
The Defence Industry is diverse and a
number of different products are
produced with unique features.
Supplier power: Low Suppliers are mostly homogonous such as
steel producers.
Threat of new entrants: Low There is a high research cost associated
with developing products for the defence
industry, especially advanced equipment
such as figher jets. Lockheed Martin, the
largest arms-producing and military
service company in the world (excluding
China) (Stockholm International Peace
Research Institute, 2012), spent $697
million on research and development in
2013 (Aeroweb, 2013).
Patents can be used to protect intellectual
property rights preventing competition.
Threat of substitutes: Low Countries need to maintain national
defence forces for internal security
purposes and in order to deal with
external threats. Only a handful of
countries in the world do not maintain a
standing force (Wikipedia, 2014).
Diplomacy.

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Force: High/Low: Considerations/ Justifications:
Rivalry among existing
competitors:
High Militaries have been faced with budget
constraints due to austerity measures in a
number of countries. The United States,
cut Pentagon spending by $1 Trillion over
the next decade (Shalal, 2014). This forces
defence companies to compete for a
smaller share of total industry spending.

Overall industry attractiveness: The defence industry is relatively attractive. Despite the
buyer power of the major military spenders and the high rivalry among exisiting competitors
there is the ability to be successful in the industry with a unique product which meets
customer needs.
3.3 Customers and Thei r Needs
The major customers for the LSWatch will be the defence forces of Governments and
security contractors (especially those dealing in counter terrorism). An important safety
objective of all armies is reducing the fratricide rate. Although it is exceedingly difficult to
do, the US army attempted to estimate the fratricide rates in different operations and
provide recommendations for reducing that rate (US Military , n.d.). For individual soldier
use, customers require a solution that is relatively inexpensive, non-obstructive for the
soldier, durable, secure and highly beneficial. Total worldwide defence spending was
calculated to be $1.7 trillion in 2013. (Solmirano, 2013, p. 2)
3.4 The Product and Service
The LSWatch gives accurate location data for soldiers, police and security contractors on
other friendly personnel in the vicinity. This prevents fratricide as friendly soldiers can be
located in an environment which is potentially noisy, hazardous and with poor visibility. It
uses GPS tracking to provide co-ordinate locations for the wearers of the watch and then
uses Bluetooth technology to transmit that data to other watch users in the area. Maps can
be uploaded to the watch or a satellite image of the area used. The LSWatch also contains
an important pulse monitor which can alert nearby watch wearers when a soldier is
unconscious or fallen. This acts as a security feature, shutting off the location data of other
wearers so the valuable data is not used by adversaries while still projecting the location of

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the fallen/unconscious wearer. The LSWatch is a versatile smart-watch which has many
other potential uses in combat.
3.5 Suppliers/Partners
Supplier relationships would be critical in making the LSWatch because the customer needs
for a durable, secure and beneficial product requires excellent implementation of current
technologies. An example of an important supplier is semiconductor chip makers such as
Intel, AMD or Qualcomm (the makers of Snapdragon) for the processing ability of the
LSWatch. Materials suppliers would be important to create a durable product. An example
may be Hebei Iron and Steel, a Chinese steel producer which has an annual production
capacity of 30 million tonnes of steel (Boling, 2008). An important partner in LSWatch would
be Microsoft. The US Military, a major potential customer, uses the Microsoft operating
system on its computers and servers (Islam, 2013). The LSWatch would need to be
developed to be compatible with Microsofts OS. Defence contractors, such as Lockheed
Martin, could be another potential partner for the LSWatch helping the LSWatch Company
obtain access to the US market.
3.6 Strategy: Focused Differenti ation
The LSWatch is used by personnel in operations. Personnel equipment is a segment in the
overall defence industry. The porters generic strategy that LSWatch will target is focused
differentiation. LSWatch aims to fill a niche in defence industry lifesaving equipment with a
unique product; a smartwatch specifically designed defence force personnel. The challenge
would be to encourage governments to purchase the LSWatch as standard for all personnel
rather than simply special forces.
3.7 Value Chain Activity: Marketing and Sales
Marketing and Sales is an integral value chain activity for the LSWatch. This is due to the fact
that the customer needs will differ. Therefore the marketing and sales strategy will have to
reflect this. Sales consultants will need to be highly skilled and able to communicate
customer needs effectively to the production and research and development departments.
Marketing also involves the gathering of research for the product design process which will
be crucial to developing the LSWatch further to have unique selling points which can
become competitive advantages.


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3.8 Business Processes
3.8.1. ORDERING PROCESS
An important process involved in the LSWatch business is the ordering process which occurs
when a customer indicates an interest in purchasing the LSWatch. The LSWatch may need to
be tailored to the needs of the client (for example a Scandinavian government may need the
LSWatch to operate effectively in sub-zero temperatures).


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3.8.2. MARKET RESEARCH PROCESS
This process occurs with regularity to continue the product development process. It is also
initiated when a customer suggests a potentially worthwhile improvement to the LSWatch.
The market research process is integral to product development. This will allow unmet
customer needs to be identified.



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3.9 Functionalities
3.9.1. ORDERING PROCESS
Alert system to notify respective departments of a custom order.
Client sent login details for end-user support area access.
3.9.2. MARKET RESEARCH PROCESS
Statistical Analysis Function.
Presentation (graph) Output Function to make findings readable.
3.10 Systems

3.10. 1. DATA WAREHOUSE SYSTEM - As some customers of the LSWatch will have different needs
and a unique version of the LSWatch in use, it is necessary to store that data in a CRM system. The
Data Warehouse system will allow marketing efforts to be tailored to the client and for valuable
customers to be identified (RFM) and targeted to potentially cross sell partner products. It will also
be important for the service value chain activity. The data warehousing system can be used in the
market research process e.g. by storing contact details or by showing common customer alterations
to the LSWatch during their orders.
3.10. 2. DATABASE WORKFLOW MANAGEMENT SYSTEM - This will allow the order process to be
streamlined by allowing for the automation and management of the process. Different departments,
i.e. the finance/accounting, production and research departments, can be notified and work on
specific alterations of the product for unique one-off of the LSWatch.
3.10.3. ORDERING DECI SI ON SUPPORT SYSTEM - The customisations allowed in the order process
require a decision support system to help the sales department decide whether or not to accept an
order based on a contractual price. This DSS will give information on the product cost and will
perform CVP analysis.

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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)

Marketing/Sales
1. Ordering Process. 1. Alert system to notify respective
departments of a custom order.
2. Client sent login details for end-
user support area access.

Ordering Decision
Support System

Database Workflow
Management System
Decision Support
System



Collaboration Systems
2. Marketing/Sales
Process.
1. Statistical Analysis Function.
2. Presentation (graph) Output
Function to make findings readable.

Ordering Decision
Support System


Data Warehouse System
Decision Support
System


Customer Relationship
Management System

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CONCLUSION
The LSWatch Companys vision is to improve the combat environment by eliminating the
uneccessary fraticide which occurs. Despite Government cutbacks in the defence industry, it
is still a relatively attractive industry to enter and will grow as economies improve.
Technology will be important to implementing the LSWatch strategy in order to create
competitive advantages. Groupware systems which allow for Matrix teams to be formed
within the organisation will allow for the alterations customers may need to be made to the
LSWatch to suit their requirements. This product will save lives.

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REFERENCES
Aeroweb. (2013). Lockheed Martin (NYSE:LMT) | Research (R&D) Spending. Retrieved from Aeroweb:
http://www.bga-aeroweb.com/firms/Research/Research-Lockheed-Martin.html
Boling, Z. (2008, June 30). Largest Steel Maker Emerges in Hebei. Retrieved from Caijing:
http://english.caijing.com.cn/2008-06-30/100072263.html
Gertje, T. W. (2011). Lockheed Martin Corporation.
Islam, Z. (2013, January 8). Microsoft Signs $617 Million Windows 8 Contract With US Gov't. Retrieved May 23,
2013, from Tom's Hardware: http://www.tomshardware.com/news/Microsoft-Windows-8-U.S.-
Government,20258.html
Shalal, D. A. (2014, February 24). Budget cuts to slash U.S. Army to smallest since before World War Two.
Retrieved from Reuters: http://www.reuters.com/article/2014/02/24/us-usa-defense-budget-
idUSBREA1N1IO20140224
Solmirano, S. P.-F. (2013). Trends in World Military Expenditure, 2013. Stockholm International Peace Research
Institute.
Stockholm International Peace Research Institute. (2012). The SIPRI Top 100 arms-producing and military
services companies in the world excluding China, 2012. Retrieved from sipri:
http://www.sipri.org/research/armaments/production/Top100
US Military . (n.d.). Fratricide: Reducing Self-Inflicted Losses. Retrieved from US Army Combat Readiness/
Safety Center:
https://safety.army.mil/groundsafety/SAFETYPROGRAMS/TacticalSafety/FratricideReducingSelfInflict
edLosses/tabid/706/Default.aspx
Wikipedia. (2014, May 21). List of countries without armed forces. Retrieved May 23, 2014, from Wikipedia:
http://en.wikipedia.org/wiki/List_of_countries_without_armed_forces