INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION

2014

Name Shivon Raj

NetID sraj939

Group Number: 362

Website Link: http://infosys110group362.blogspot.co.nz/

Tutorial DetailsTutor: Day: Time:

Mira Lee Friday 11am

Time Spent on Assign-ment: 30hours Word Count: 1583

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FINGERPRINT TRANSACTION SYS-TEM INTRODUCTION

Credit card fraud is a major issue on both locally in New Zealand and globally credit card fraud has amounted to $55.5Billion world wide so far (Statistic Brain, 2012). This is an on-going problem that hasn’t been effectively fixed thus far. However a solution has arrived, a Fingerprint Transaction System (FTS) that eliminates fraud with a highly secured data-base and the need for a credit card.

3. BUSINESS SECTION

3.1 Vision

Our vision is to defeat credit card fraud worldwide by providing a highly secured pre-mium convenient transaction experience for customers.

3.2 Industry Analysis: Financial Transaction Processing Industry

Industry: Financial Transaction Processing Industry. This industry encounters for all payment transaction cards (Hoovers, 2014)

Force: High/Low: Justification:

Buyer power: High Buyer Power: Buyer power is high when the cus-tomer has many sellers to choose buy from, therefore buyer power in this industry is high. Other alternatives include payment via cash, cheque and other payment cards. These meth-ods of payment are traditional and trusted. A re-cent consumer choice study (TSYS, 2013) found debit and credit were the favoured methods of payment for consumers.

Supplier power:Low Supplier power is low as there are many differ-

ent suppliers to choose meaning a company in this industry has a variety of manufacturers from which to supply the company. Many easily ac-cessible payment systems can be used. (Paysta-

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tion, 2012)

Threat of new entrants: High Threat of new entrants is low because of the switching costs from existing companies will make it difficult for entrants to attract cus-tomers. As mentioned in a study “Switching costs also hamper forms of entry that must per-suade customers to pay those costs, in particu-lar, large-scale entry that seeks to attract other firms’ customers”(Paul Klempere, Oxford Univer-sity, 2005)

Threat of substitutes: High Threat of substitutes is high as there are alterna-tives including cash cheque, online payment methods and payment cards. These methods are traditional and trusted, therefore threat of sub-stitutes is high in this industry. Shown by the US Visa customers owning 234.1million credit cards, American Express had 50.6 million in 2012.

(Visual, 2012).

Rivalry among existing

competitors:

High The competition in this industry is fierce, attract-ing customers through various methods such as low interest rates and wavered account fees. Loyalties with established companies who offer rewards are hard to gain therefore differentia-

tion becomes tough, thus rivalry is high. (Busi-

ness Insider,2011).

Overall attractiveness of the industry: This is an unattractive industry due to the follow-ing factors: high buyer power along with low supplier power, therefore consumers have a much greater pull on the market. With tough barriers to entry and high start up costs,

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the rivalry among trusted competitors with loyal customers is hard to compete with when entering this industry.

3.3 Customers and Their Needs FTS offers a premium service as an alternative to using credit cards as payment to our customers the target group of customers would be retailers and users of FTS.

The needs of the retailers are to offer their customers the safest and fastest payment op-tion. FTS opens up the store to a greater range of customers. During busy periods the FTS is a quicker payment method, hugely reducing queues in stores. Safety of payment is increased.

The customers who are users need a transactional processing system that is safe and se-cure, in order to deposit, withdraw and make purchases and payments. This method of payment Research shows £36.1 million was stolen through counterfeit credit cards in the UK in 2011 (Financial Fraud UK, 2012).As with credit cards FTS is easily accessible, a reli-able source of payment in times of need such as an emergency. Elimination of risks asso-ciated with credit card fraud.

3.4 The Product and Service

FTS is an alternative payment method to credit cards eliminating the need for tangible payment. Unique to each customer and cannot be copied or traced. When purchasing an item in a retail store they will simply scan their thumb on to the scanner and enter a short passcode. Payment will be activated for their purchase and a record of the time, amount, location and item/service of the purchase will be recorded instantly. A safe has-sle free payment method.

3.5 Suppliers and Partners

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Suppliers: Raw materials for manufacturing of the scanner are required: Supplier 1: Metal casing manufacturer that the scanning technology will be encased within.Supplier 2: The specialised glass cut that will transmit the users fingerprint into the sys-tem, the concoctor between the scanning technology and the user.

Partner 1 Database system: A key partner is the highly secured database system provider. Who provide software to store all user information at optimum security. The benefit to the database company is an exceeding larger customer base, the benefit to our company is the highly secured storage database system.

Partner 2 Visa and MasterCard: Visa & MasterCard currently control most of the global credit payment systems. This partnership enables our device to be used worldwide, this is essential to the success of this business. Visa and MasterCard gain the benefit of hav-ing access to the latest transaction processing technology (FTS) enhancing the efficiency of credit payment thus increasing customer satisfaction.

3.6 Strategy: Differentiation The competitive scope is broad market and the cost strategy is high cost.The FTS system targets a large group who are users of transaction processing systems both commercial and personal thus broad market. The strategy is high cost differentiation this is a pre-mium, first-of-its-kind service offered to users as an alternative to a credit card. Our dif-ferentiation is high security paired with technology and ease. This links to our vision of defeating credit card fraud worldwide, through high security technology.

The overall strategy is therefore Differentiation

3.7 Value Chain Activity: Providing service after the sale Providing service after sale is a point of difference to the consumer, in-creasing customer satisfaction as security is ensured along with offering an efficient experience. The purpose of this product links directly to our vi-sion, defeating credit card fraud worldwide.

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3.8 Business Process

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3.8.1. PRODUCT INSTALLATION AND SERVICE FOR TRAINING PROCESS

This business process provides assistance with training via manuals, dvd’s, workshops and practical training with specialists. Also ensuring the retailers remain knowledgable on the product and its features as it evolves.The information systems located in the database sector of the model show the storage of all information.The importance of the business process lies in the link into between aspects of the value chain mode such as Technology development (R&D) . Technological Enhancement of the information sys-tems available to store the data will be more advanced with more research and devel-opment continuously adding value.

3.9 Functionalities

3.9.1. MAINTENANCE AND SERVICE PROCESS

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• STORAGE OF INFORMATION

• COMMUNICATION

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3.9.2. PRODUCT INSTALLATION AND SERVICE FOR TRAINING PROCESS

• ACTIVATION OF SYSTEM ENABLER

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• PROCESS OF ORDER

3.10 Systems

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3.10.1. DATA STORAGE SYSTEM

This system is essential to support the functionalities of storage of information and processing of order. This system stores the information in the secured database, by sending the data into the encrypted database. This is essential as it supports the purpose of the fingerprint transac -tion system. This system is the back bone to the FTS as it l inks security with the information.

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13 Business Process Model 3.8.2. MAINTENANCE AND CUSTOMER SERVICE PROCESS

This maintenance and customer service process, directly relates to our value chain activ-ity service after the sale. Illustrating the premium differentiating factor of FTS, and the importance behind the systems within the process by providing on going support to the retailer after purchase. The information systems located in the database sector of the model show the storage of all information. As the model shows an issue such as loss of connectivity between the scanner and the computer systems this can be resolved in-stantly by the use of the free helpline which lead to the connectivity help crew who will resolve it.The business process adds value to the marketing and selling of the product which increases the products buyer power. The consumer has more reason to buy this

3.10.2.FAULT IDENTIFICATION SYSTEM

This system is used by the communication functionality that supports the maintenance and service process. This system identifies and then categorises the issue and directs the caller to the correct department, where the issue will be resolved.

3.10.3. OVERVIEW ACTIVATION SYSTEM

This system supports the process of order functionality in the product installation and service for training process. As it rechecks to make sure order process is correct before allowing it to be processed to the next stage. This system is in place to avoid human er-ror and increase efficiency in the ordering system prior to activation to avoid errors.

3.11. Summary Table: Value Chain to Systems

Value Chain

Activity

Processes Functionalities Specific Informa-tion System(s)

Broad Informa-tion System(s)

Service

after

sale

1. Mainte-nance and service pro-cesses

1. storage of informa-tion

2. communication

Data Storage System

Fault identifica-tion system

TPS

DSS

2. Product in-

stallation and

service for

training

process

1. activation of sys-tem enabler

2. data process Data Storage System

TPS

TPS

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CONCLUSION

In conclusion a Fingerprint transaction system is the way to eliminate credit card fraud worldwide. This solution is efficient, secure and hassle free. The finger print scanner will be a benefit to various parties, both commercially in very corporate large firms to everyday stores. This solu-tion has the ability to make the world credit card fraud free, building a better future. A more financially secure world is something were always striving for and it can be achieved through the systems implemented within this Fingerprint scanner. Lets makes this world a better one for all.

REFERENCES

1. Author. (n.d.). Title of page. Retrieved from URL

Referencing

1.Statistic Brain (2012) Consumer Sentinel Network, U.S. Department of Justice Re-trieved From: http://www.statisticbrain.com/credit-card-fraud-statistics/

2. Hoovers (2014) Industry Analysis Retrieved from http://www.hoovers.com/indus-try-facts.financial-transaction-processing.1346.html

3. TSYS (2013) Consumer Payment Choice Study 2013 Retrieved from http://www.tsys.com/Downloads/upload/2013-Consumer-Payment-Choice-Study.pdf

4. Paystation (2012) What pay station does Retrieved from http://www.paystation.-co.nz/what-Paystation-does

5. Paul Klempere, Oxford University (2005) Network Effects and Switching costs Re-trieved from http://www.nuff.ox.ac.uk/users/klemperer/NewPalgrave.pdf

6. Visual (2012) US Credit card usage stats Retrieved from http://visual.ly/2012-us-credit-card-usage-statistics

7. Business Insider (2011) Competition between credit card users heats up Retrieved from http://www.businessinsider.com.au/competition-between-credit-card-issuers-heat-up-2011-7

8. Financial Fraud UK (2011) Fraud the statistics 2012 Retrieved from http://www.theukcard-sassociation.org.uk/wm_documents/Fraud_The_Facts_2012.pdf

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