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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Andrew Student
NetID cmua178
Group Number: 320
Website Link: http://infosys110groupxxx.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Kit-Wa Wednesday 12pm
Time Spent on
Assignment:
15 hours Word Count: 1642

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DELIVERABLE 2
INTRODUCTION
Obesity is defined in the (Medical dictionary) as "an abnormal accumulation of body fat,
usually 20% or more over an individual's ideal body weight. Obesity is associated with
increased risk of illness, disability, and death. Highlighting the aspect, obesity associates
with an increase risk of illness, disabilty and ultimately death, this leads me on to my
problem statement being, The Obesity Rate in New Zealand is too high. Recently statistics
have shown that New Zealand is in the top 5 overweight countries in the world (OECD,
2013) and showing no signs of slowing down with the obesity rate in adults continuing to
increase. (Ministry of Health, 2013). To solve this problem we have come up with a new and
improved, simple way to increase your physical health. The new process we have presented
is the use of state of the art machines to assist the user in the gym. Our new technology will
benefit local, central, small, large, medium, any kind of gym with its inclusion, and more
importantly it will strive to benefit the most, the customer.
3. BUSINESS SECTION
3.1 Vision
Improving the physical health of our cutomers to live a healthier life
3.2 Industry Analysis: Health and fitness technology industry
Industry: Health and Fitness technology
Force: High/Low: Justification:
Buyer power: Low The buyer power for the particular industry we
are in will be low, this is because there are very
few other firms in this industry. It is very narrow
and by us entering this industry the chance of the

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buyers choosing other firms beside us will be low.
Supplier power: High The machine that we will be using is very similar
to the machine known as the DEXA (Dual-Energy
X-Ray Absorptiometry). Because the number of
suppliers who make these machines are few, the
suppliers will have more power over the buyer.
Threat of new entrants: Low This certain industry will be low for threat of new
entrants because there are a number of barriers
that keep possible entrants from entering. One
barrier will be the cost to create these machines,
the cost will be high so for a number of possible
entrants this amount will be too much cancelling
their oppurtunity to enter.
Threat of substitutes: High Although there are few firms in our particular
industry, there are a number of alternatives that
are availble to customers who seek the type of
assistance and information we offer. One piece of
information that our machine can measure is the
amount of body fat currently on the user, and in
what areas that fat is. A threat or an alternative
to this can be a DEXA scan which is primarily used
to measure bone density, but also measures fat
mass. Skin calipers are another common tool
used to measure body composition although this
method can be somewhat vague because only
certain parts of the body is measured.

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Rivalry among existing
competitors:
Low Because our industry is the Health and Fitness
Technology industry rather than the Health and
Fitness Centres and Gymnasia Operation
industry the rivalry between competitors would
be low, because of the low numbers.
Overall attractiveness of the industry: There are a number of pros to this industry but also
cons that go with it. I think the major opposing point would be the cost to enter the industry
in relation to acquiring or manufacturing the technology and machines neccessary. This
would be very expensive and could turn off a lot of business. Also it could end up being a
risk going forward because of the young age of this industry, meaning there are very few
experiences showing the outcome of business who have entered this industry. In saying this
there are definitely positive aspects that make this industry attractive. The fact there are a
very little number of current business in this industry makes it compelling to enter and more
of a chance to do well.
3.3 Customers and Thei r Needs
The customer target group that we are aiming at as a business, is all operating fitness
centres, gymnasiums and health clubs. This is our primary target group as we intend to
operate our technology / machines in these particular locations. The needs that these
companies have is to increase their customer range and numbers, to have as many
members as possible. Eventually, we intend for our products to be used in the gym by all
customers but are targeting a certain population, as stated previously the overweight and
obese population. Their needs will be the overall improvemet of their well being and in our
case their physical health
3.4 The Product and Service
With the inclusion of our product / service and the new technology it offers towards their
business we are positive that it will increase the number of customers that will use their
gyms. Our primary aim is to decrease the obesity rate in New Zealand, and we feel as

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though the need of this population is for them to improve their physical health. We believe
we created technology that will assist and ultimately fufill the needs of these people.
3.5 Suppliers and Partners
A potential partner that we could incorporate with could be Woolworths, if we were to have
a partenership with them they could be used, as mentioned in our d1 video, as use for
discounts if customers were to use gyms that operate our machines. A supplier could be the
company HOLOGIC. Who are a company that manufactures DEXA scanners, seeing as similar
technology is used in our machines as DEXAs we could potentially purchase supplies off
them.
3.6 Strategy: Differenti ation
For our business I think the Porters Generic Strategy that we will use is differentiation. This
is based on the high cost of manufacturing these machines which makes us sell our product
at a higher cost and the broad market that we expect to sell our products in, being all
operating gyms in New Zealand. 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 Make the product or service
because based on our vision, which is to improve the physical health of our cutomers, we
need to make sure our product that we are creating and producing for customers is doing its
job and fufilling the needs that are expected of us.
3.8 Business Processes
3.8.1. DELI VERY OF PRODUCT PROCESS The delivery of product process is the process from
which the finished product that has been purchased is delivered to the customer, in most
cases the gyms. It starts with the details of the customer order being obtained, then the
details of the order sent through to the inventory warehouse through the product ordering
system. Once the order has come through to the warehouse it is collected and then sent to
get packaged. When finished packing it is checked to see if it is packed correctly and safely,

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if not it is returned to be packed again. Once it has been packed correctly it is collected by
the delivery truck and delivered to the customer.
Warehouse
Start
Customer order obtained
Product is packaged
Check if packaged correctly
Product ordering system
Collected by delivery truck
Delivered to customer
End
Yes
No


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3.8.2. PRODUCT MANUFACTURE PROCESS This process is begun by ordering and collecting
equipment needed to manufacture the product from the inventory warehouse. After
equipment is collected they are sent to the manufacturing warehouse, this is where the
product is made. After completing the finnished product it is analyzed to see if any mistaked
were made, if so it is sent back to get re-made. If it is given the all clear the finished product
is sent to the inventory warehouse where the status of the the product is updated as
Finished Product.
Manufacture Warehouse
Start
Equipment ordered and
collected
Equipment is sent to
manufacturing warehouse
Product is manufactured
Equipment ordering system
Check if any problems with
finished product
Product delivered to
Inventory warehouse and
updated asfinished product
End
No
Yes



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3.9 Functionalities
3.9.1. DELI VERY OF PRODUCT PROCESS
Confirm customer order of product
Advise the delivery company the product is ready to be delivered
3.9.2. PRODUCT MANUFACTURE PROCESS
Update product as Finshed Product
Confirm equipment order is correct
3.10 Systems

3.10. 1. ORDER PROCESSI NG SYSTEM The order processing system is involved with all orders
that have been made within the business. Such as customer orders and equipment orders.
3.10. 2. DELIVERY MANAGEMENT SYSTEM The delivery management system is used in the
delivery process. It keeps a track of the delivery orders being made and where to deliver
products. It also needs to keep a track of the product status so they know when the product
is finished and ready to be delivered.
3.10. 3. PRODUCT MANAGEMENT SYSTEM This system is used to keep a track of all the
products in the business. It identifies where the products are currently located and what
stage in the overall process is that product. As the functionality above stating Update
product as Finshed Product relates to the current status of that product, it would be in the
product management system.

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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. Delivery of
Product
Process
1. Confirm customer order of product

2. Advise the delivery company the product is
ready to be delivered
Order Processing System

Delivery Management System
Transaction Processing
System

Collaboration System
2. Product
Manufactur
e Process
1. Update product as Finished Product

2. Confirm equipment order is correct
Product Management System


Order Processing System
Transaction processing
system

Transaction Processing
System

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CONCLUSION
Entering the Health and Fitness Technology industry, we feel will be a challenge that we are
determined to take on. Although it is small, the business model we have designed and the
steps we are going to take will be both positive. With the use of our business processes and
sytems put in place the direction headed from the get-go will be up. The obesity epidemic
that New Zealand is facing needs to be addressed furthermore, we believe with our
innovation and our technology that we have created we can improve the physical health of
those that are in need.
REFERENCES

Obesity definition of Obesity in the Medical dictionary by the Free Online Medical
Dictionary, Thesaurus and Encyclopedia. (n.d.). Retrieved April 1, 2014, from
http://medical-dictionary.thefreedictionary.com/Obesity

OECD (2013), Overweight and obesity, in OECD, OECD Factbook 2013: Economic,
Environmental and Social Statistics, OECD Publishing. doi: 10.1787/factbook-2013-en

Ministry of Health. 2013. New Zealand Health Survey: Annual update of key findings
2012/13. Wellington: Ministry of Health