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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Anjie Zhang
NetID azha723
Group Number: 361
Website Link: http://infosys1102014s1group361.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Kit-wah Huang Friday 12 pm
Time Spent on
Assignment:
35 hours Word Count: 1578

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ANALYSIS REPORT
INTRODUCTION
Traffic injury is one of the toughest problems in todays world. Every year, there are 1.24
million road traffic deaths worldwide (WHO, 2013). Due to the tectonic uplift of land and
volcanic eruptions, the landscape of New Zealand is extremely complicated. This increased
the chance of traffic injuries happening while drivers are cornering sharp angles. Our teams
solution is to set up a signal station at all the dangerous corners, and drivers can then
download an app on their smartphone or install a physical signal receiver on their car to
receive signals warning them about on-coming cars. The purpose of this report is to do a
virtual market analysis of the product, identify some of the supporting information systems
and to see whether the product is feasible and applicable.
3. BUSINESS SECTION
3.1 Vision
To protect customers safety and prevent traffic accidents around the world by minimizing
the opportunity of human errors using technology.
3.2 Industry Analysis: Traffic condition signal station industry
Industry: Traffic Condition signal station industry. This is the group of businesses that
provide base station product and services in order to promote customers traffic safety.
Force: High/Low: Justification:
Buyer power: Low Buyers have low powers on choosing providers.
Although it has basically no switching cost, it is
still hard for customers to switch because
currently there isnt a lot of companies in the
given industry that provides real-time road

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condition information to promote road safety.
Supplier power: High Some researches over wireless base stations
indicates that the components used to build the
base station and signal receivers all involved the
use of high-tech (Laird, 2014) and therefore there
are few choices of suppliers (i.e. suppliers have
high powers) for this industry.
Threat of new entrants: Low As stated by Bsaikrishna (2011), an idea is an
cheap entry ticket. For the given field, ideas are
cheap, but the real applications are hard because
it has a high entry barrier: it requires a huge initial
capital investment cost to build base stations at
all common corners.
Threat of substitutes: Low Substitutes to a real-time road condition alert can
be a road condition displaying signboards warning
drivers how sharp the angle is or some other
extreme conditions. (Traffic Signs NZ Ltd., 2013)
Although this is an more economic option, some
drivers do not take notice of them because they
are everywhere and could be inaccurate.
Therefore, our option comes more intuitively for
drivers.
Rivalry among existing
competitors:
Low As stated previously, there isnt a lot of
companies in the given field. Although there are
people who creates Smartphone applications to
promote public traffic safety, none of them

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focused on real-time conditions and warn the
drivers while there is a on-coming car. Therefore,
the competition in this industry is currently low.
Overall attractiveness of the industry: We can say this is an industry with relatively high
level of attractiveness due to its low buyer power, low threat of substitutes, low threat of
new entrants and low rivalry among existing competitors. However, we have to be aware
that once the idea is copied by others, the buyer power and rivalry level will both increase
and by that time the industry will be less attractive.
3.3 Customers and Thei r Needs
Our product mainly target long-distances drivers and self-driving travelers, because their
driving is mainly tiring. Particularly, travelers and other drivers who are driving in New
Zealand may find the roads twist and tough due to NZs weather and landscape conditions.
Their need is therefore a product that can warn them about road conditions and on-coming
cars so that they know when to slow down. This can eventually increase their confidence in
driving while cornering, protect customers personal safety and lower the traffic injury rate
as a whole. (Ministry of Transport, 2012)
3.4 The Product and Service
Our product is called Road Defender. It has two different forms, both can work for our
customers. Its physical form is a small signal receiver that can be installed by the WOF
service provider or at other specific locations. Meanwhile, people with a smartphone can
choose to download it. With this signal receiver, cars within the range of the station can
exchange information and drivers are therefore alerted about on-coming cars. This will
therefore meet the needs of our customers, provide them with real-time road condition and
protect their safety.
3.5 Suppliers and Partners
Two main suppliers of our product are (1) suppliers of base station technology, e.g. the Laird
Ltd, which is a wireless base station provider mentioned in the previous part and (2)

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suppliers of smartphone application designers, e.g. The DotPerformance company (a New
Zealand based software designing company).
Two major partners of our product are: (1) New Zealand government: we can get support
and financial aids from the government if we can successfully lower the injury rate; and (2)
Advertisers: advertisers can pay to insert build-in advertisements in our smartphone
application or the signal receiver.
3.6 Strategy: Differentiation
Competitive Scope: Broad market
Our company aims to make this product accessible to every car in the future and to
promote the public traffic safety overall, therefore we are aiming at the broad market.
Cost strategy: High Cost
As this potential future market is still relatively empty at the moment, it is assumed that
there will not be an apparent competition on price (i.e. customers therefore have low buyer
power).
The overall strategy is therefore Differentiation.
3.7 Value Chain Activity: Make the product or service
The most important value chain activity for this business is to Make the product or service.
The activities related to providing the product and ways how the operation system provides
value (Mind Tools Ltd, 2014) are the most important step for our business. Our companys
primary vision is to protect users safety and prevent traffic accident, and the product is the
primary value creator which makes all this possible. Also, since we are positioning our
product to be a premium choice for customers, we have to improve our product all the time
to improve customers satisfaction.
3.8 Business Processes

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3.8.1. BETA TESTING AND MARKET TESTI NG PROCESS The business process is initiated with
the development of a new product. The company uses this process to do beta testing on
product reasonableness and market testing on product acceptance. When there is a
problem, the company goes back to the previous step to review it again and make
adjustments where necessary until the product is ready for manufacture. This process
involved the Department of Marketing & Sales, Research & Development and
Manufacturing. One system supporting this process is the customer satisfaction survey
system, which is used to determine customers acceptance. (Wikipedia, 2014)



















(3.8.1. Continued) BETA TESTING AND MARKET TESTING PROCESS MODEL

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Start
Development of the
new product
Produce a physical
prototype or a mock up
Test the product in
typical usage situations
Is the product working correctly
without and errors and bugs?
Reengineer the
product to improve
it and fix bugs
No
Yes
Research & Development
Sell the product in a
test market area
Is the customers acceptance
over the new product?
Marketing
Make adjustments
where neccessary
Manufacture the
product
End
Manufacturing

No
Yes

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3.8.2. PRODUCT IMPROVEMENT PROCESS This is a process based on customer feedbacks. It
evaluates feedbacks received from customers and decide what changes should be applied to
the product to satisfy customers needs. This process involved the Department of Customer
Service and Research & Development. A Feedback respondent system can be used to
evaluate customers ideas and indicates neccesary changes for the company.
PRODUCT IMPROVEMENT PROCESS MODEL
Start
Receive customers
feedback on product
Is the feedback
reasonable?
Ignore the feedback No End
Is the feedback
applicable?
Yes
Reply the customer
explaining why is it hard
to make a change
No End
Reengineer the product
and improve it to satisfy
customers needs
Yes
Does it satisfies
the customer?
No
End
Yes
Customer Service
Research & Development


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3.9 Functionalities
3.9.1. . BETA TESTING AND MARKET TESTING PROCESS
Tests on the trial product in order to identify errors and required
improvements
Measure the customers acceptance on the product
3.9.2. PRODUCT IMPROVEMENT PROCESS
Improve the product to satisfy customers needs
Analysis and responds to the customers feedback
3.10 Systems

3.10. 1. FEEDBACK RESPONDENT SYSTEM This system can collect feedback from people and
classify them automatically by keywards. Also, after the severity of the system has been
decided, the system can automatically decide what and when to reply to some of the
useless feedback. This system increases productivity and save time for decision makers.
3.10. 2. BETA TESTING SYSTEM The system can test the product in typical usage situations
and then see what parts went wrong and needed improvement. If some parameters of the
product does not meet the standard required by the beta-testing system, then the system
will report this to the user and indicate whether an adjustment is necessary. This makes it
easier for testers to measure the parameters and decide whether there is a error or not.
3.10. 3. CUSTOMER SATI SFACTION SURVEY SYSTEM customer satisfaction survey system is
essential for the process because it allows managers to collect satisfactory rate data and
turn them into decision making information. This is especially important for the marketing
department because they can use this system to quickly respond to the market need and
change their marketing strategy.


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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)

Make the
product or
service
1. BETA
TESTING AND
MARKET
TESTING
PROCESS
1. Tests on the trial product in order to identify
errors and required improvements
2. Measure the customers acceptance on the
product
FEEDBACK RESPONDENT
SYSTEM

BETA TESTING SYSTEM
Decision Support System


Decision Support System
2. PRODUCT
IMPROVEME
NT PROCESS
1. Improve the product to satisfy customers
needs
2. Analysis and responds to the customers
feedback
FEEDBACK RESPONDENT
SYSTEM


CUSTOMER SATISFACTION
SURVEY SYSTEM
Decision Support System



Customer Relationship
System

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CONCLUSION
Overall, we can say that the business idea is pretty innovative and the targeting industry is
relatively attractive due to relaxative competition among competitors. Therefore, it is a
good idea to run the business. Also, during in the operations of the business, information
system can act as an essential tool to increase productivity and save some time for the
business.
REFERENCES

1. World Health Organisation. (2013). 10 facts on global road safety. Retrieved from
http://www.who.int/features/factfiles/roadsafety/facts/en/
2. Laird. (2014). WISP Antennas. Retrieved from
http://www.lairdtech.com/Products/Antennas-and-Reception-Solutions/Base-
Station-and-Backhaul-Antennas/WISP/
3. Bsaikrishna. (2011). Mobile apps high potential and low entry barrier. Retrieved
from http://brandalyzer.wordpress.com/2011/07/07/mobile-apps-%E2%80%93-
high-potential-and-low-entry-barrier/
4. Mind Tools Ltd. (2014). Porter's Value Chain-Understanding How Value is Created
Within Organizations. Retrieved from
http://www.mindtools.com/pages/article/newSTR_66.htm
5. Ministry of Transport. (2012). SECTION 2: CASUALTIES AND CRASHES. New Zealand:
Author.
6. Traffic Signs NZ Ltd. (2013). PW's & RC Chevrons. Retrieved from
http://www.trafficsigns.co.nz/Categories$permanent-warning.html
7. Wikipedia. (2014). New product development. Retrieved from
http://en.wikipedia.org/wiki/New_product_development