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1 INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS SECTION 2014 Name Rory MacIntyre NetID Rmac803 Group Number: 233 Website Link: http:// infosys1102014s1group232.blogspot.co.nz/p/ d2.html Tutorial Details Tutor: Day: Time: Kit-Wah Huang Wedensed ay 12pm Time Spent on Assignment: 35 hours Word Count: 1638

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Page 1: Deliverable 2

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INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS SECTION2014

Name Rory MacIntyreNetID Rmac803Group Number: 233Website Link: http://infosys1102014s1group232.blogspot.co.nz/p/d2.html

Tutorial DetailsTutor: Day: Time:Kit-Wah Huang Wedenseday 12pm

Time Spent on Assignment: 35 hours Word Count: 1638

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TRANSDERMAL ALCOHOL TESTING IGNITION LOCKINTRODUCTION

It is estimated that 100 New Zealanders are charged with drink driving everyday and in 2012, these crashes resulted in 93 deaths, 454 serious injuries and 1,331 minor injuries. Drunk driving is clearly an issue that affects a wide range of people in very appalling ways and needs to be solved. Our solution is a transdermal (through skin) alcohol ignition lock system which tests blood alcohol, if blood alcohol is too high, the car is blocked from starting.

3. BUSINESS SECTION

3.1 Vision

We intend to save lives by providing mankind with the most effective shield against the inherent harms of drunk driving and in doing so, protect mankind from its own reprehensible behaviour.

3.2 Industry Analysis: Alcohol testing vehicle ignition locks industry

Force: High/Low: Justification:

Buyer power: LowThe only product which car manufacturers can really substitute our product for is an in car breathalyser. This means that buyers have little influence on the price for our product, as they do not have many alternative options. (6)

Supplier power: HighThere are very few other suppliers in the industry in New Zealand. This leaves us with a high power over the industry because: we can charge high prices without customers rapidly switching to our competitors products. This means we can easily pass additional costs on to consumers if the price of inputs into our business increase. (6)

Threat of new entrants: Low Due to the high input costs, high Research and

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Development costs and time to develop, new

entrant are unlikely to enter the market quickly.

Threat of substitutes: LowAccording to my research, there are very few substitute products or services in the industry for in car drunk driving prevention technology industry. Substitutes are the following: built in breathalyser and skin blood alcohol sensor in the gear stick. (6) (8)

Rivalry among existing

competitors:

Low There is only one competitor in the New Zealand

market, which is called smart start interlocks.

Despite there being so few competitors in the

New Zealand market, there are a few overseas,

particularly in the Asian market where there are

various different companies which operate in our

industry such as A &A Product Co. Ltd. Who

produce their products in Hong Kong. Despite

strong competition overseas, there is virtually no

competition in the New Zealand market. (6) (8)

Overall attractiveness of the industry: Overall, this industry is attractive because the 5

forces model indicates all five forces promote the industry as a desirable and profitable one.

3.3 Customers and Their Needs

Vehicle manufacturers are likely to purchase our product in order to gain brand recognition as a safe brand of vehicle e.g. Companies such as Volvo have marketing strategies that are primarily based around safety. Another potential set of customers are individuals who drive and drink alcohol in their lifestyle. Another potential customer group is the commercial transport industry. All these potential customers need an effective product which stops drink drivers starting vehicles. This product needs to be lawful, in consideration of both current law and future law. This product needs to be durable and reliable if it is to satisfy the needs of our customers. (1) (2) (3)

3.4 The Product and Service

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Our transdermal alcohol testing ignition lock located on the steering wheel of vehicles will effectively satisfy the needs of our customers. Our product is a quick, easy and effective way of alcohol testing. According to SCRAM systems, transdermal alcohol testing is effective, with 1% of alcohol consumed exiting the body through perspiration. Our ignition interlock device effectively prevents drink driving. Our product is also legal, in fact, alcohol interlock devices became a sentencing option in New Zealand in August 2012. This is evidence that our product is legal, reliable, durable and consequently, meets the requirements of our customers.

3.5 Suppliers and Partners

Potential partners:

A potential partner is the New Zealand government. Our government could subsidise our product as part of its anti-drunk driving policy, because their main job is to serve the public and maintain public safety, they will achieve this by lessening the effects of drink driving in New Zealand. Our company and the government can form a partnership by integrating our IT systems e.g. collaborating knowledge management systems. Another potential partner could be insurance companies, by merging knowledge management systems and content management systems in order to exchange information about crash statistics involving alcohol. This partnership could result in higher prices for insurance charged for cars without an alcohol test ignition lock such as our product, a further incentive for customers to purchase our product.

Potential suppliers:

A potential supplier is SCRAM systems, who manufacture sweat blood alcohol measuring equipment. SCRAM systems could supply us with their technology in order for us to make our product into an ignition lock system. Another potential supplier is the South Island Component Centre, who would provide us with the electronic equipment used in creating the micro-computer needed to register and evaluate information from the transdermal alcohol tester in order to control the ignition. We would have to use transactional processing systems to account for payments for the purchases from both of these suppliers.

3.6 Strategy: Differentiation

Our market is broad because the majority of New Zealanders drive and occasionally drink alcohol. 80% of New Zealanders over the age of 15 have drunk alcohol in the past year (2011/12) and it is estimated that 100 people are charged with drunk-driving in New Zealand everyday, so there is no doubt that our product has a broad competitive scope because so many people could use what our product has to offer.

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Our cost strategy is high cost because we believe our product is the best in the industry. The other products in the industry, such as breathalyser ignition lock technology, are less practical because they are bigger, harder to use and more vulnerable to passengers providing a breath sample. Since our product is the most effective in the industry, customers will purchase it at a higher price than substitutes.

The overall strategy is therefore Differentiation.

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.

In order to differentiate our product from our competitors in the industry, we need to develop the technology in our product in order to maintain a good quality product which in turn, would save more lives and would fulfil the needs of our customers. This would validate our high cost strategy and differentiate our product in order to gain a competitive edge.

3.8 Business Processes

3.8.1. PRODUCT IMPROVEMENT PROCESS - The Product Development process is key to our company to make sure we keep ahead of the market and competition. This process flow outlines how a product improvement opportunity is identified, how it is analysed, options assessed and how it flows through the technology development cycle and into production. Technology enhancements can be identified through research teams who work on technology advancements and through customer relationship management system feedback, and market analysis. With our research and development process we can keep up with latest technology trends and learn from our customer’s feedback.

Prototypes are important before the product goes into production because it allows it to be vigorously tested to ensure it works, meets our customer requirements and does not become a costly mistake. It differentiates our product and maintains our technology advantage, which keeps us ahead of our competition.

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Process 1:

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3.8.2. PROTOTYPE TESTING PROCESS - Before our Prototype moves into the production process we need to make sure it is technically sound and meets customer expectations. Many products fail because they have design faults, lack the attention to technical detail, and are not easy to use. These become costly mistakes, both in rectifying the mistakes and in customer perception. This is why our testing process is an important part of our research and development process. We complete technology test requirements to make sure our product works and complete user testing requirements to test how usable our product is. Our customers are also involved in the process. This enables us to test in a real environment before we move to production. It is much less costly to test and improve our product before we go to market than to fix the mistake in hundreds or thousands of products already on the market.

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Process 2:

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3.9 Functionalities

3.9.1. PRODUCT IMPROVEMENT PROCESS

Product differentiation Technological advantage

3.9.2. PROTOTYPE TESTING PROCESS

Identify and record test criteria Record test results for analysis

3.10 Systems

3.10.1. Customer Relationship Mangement System

Our CRM system will track customers by recording customer clicks and sales, call centre customer complaints and query information in a database. We can analyse information in the database to identify product improvement opportunitues. This has an important function as it helps us capture new ideas from our customer queries and feedback. This supports our vision to develop a product that gives the “most effective shield against the inherent harms of drunk driving”.

3.10.2. Inventory Management Systems

Our inventory management system records information on product stocks, raw material supplies and locations that can input into the development process. It helps to plan the product development by efficiently locating the best raw materials required for development. Analysis of information in the inventory managment system can also give insights into the demands and supplies of the market which helps us to identify sales potential, helping with the prototype development planning.

3.10.3. COTTAGE CHEESE SYSTEM - Test management systems allow us to input our test

requirements into our database, capture test results, monitor test progress and analyse test

results against test criteria. By doing this we can ensure that our product is well tested and

fit for the market.

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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

developmen

t and R & D

1. Product improvement process

1. Product differentiation.

2. Technological advantage

Customer service systems

Inventory management system

Customer relationship management system

Enterprise Resource Planning system

2. Prototype

testing process

1. Identify and record test criteria2. Record test results for analysis

Inventory management system

Test management system

Enterprise Resource Planning system

Customer relationship management system

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CONCLUSION

Our transdermal alcohol test ignition lock is an attracive product idea which will save lives by providing mankind with the most effective shield against the inherent harms of drunk driving. We will use various broad information systems such as customer relationship management systems and enterprise Resource Planning systems. They are made up of more specific information systems like inventory management systems and customer service systems. Overall, these systems are crucial to the success of our business idea which has been analysed and described in this report.

REFERENCES

1. National Council on Alcoholism and Drug Dependence, Inc. (December 11 , 2012). 1 NATIONAL TRANSPORTAT ION SAFETY BOARD. Retrieved May 20, 2014, from http://www.ntsb.gov/news/events/2012/wrong_way_driving/Abstract_Wrong_Way_SIR.pdf

2. Larry Copeland, USA TODAY (6/29/2012). Alcohol-sensing technology could become standard in all cars. Retrieved May 20, 2014, from http://usatoday30.usatoday.com/news/nation/story/2012-06-29/alcohol-detection-technology-standard-cars/55927610/1

3. Danny Shaw Home affairs correspondent, BBC News (31 May 2012). David Nutt suggests alcohol sensors 'in every car'. Retrieved May 20, 2014, from http://www.bbc.com/news/uk-18270234

4. Johnson, S. (Monday, August 22, 2005 ). Volvo's Multi-lock System Prevents Drunk Driving. Retrieved 21, May 2014, from http://www.strangenewproducts.com/2005/08/volvos-multi-lock-system-prevents.html

5. Scram systems (2014). Transdermal Alcohol Testing. Retrieved 21, May 2014, from http://www.scramsystems.com/index/scram/continuous-alcohol-monitoring/transdermal-testing

6. Smart Start Interlocks (2013). Our Products. Retrieved 21, May 2014, from http://www.smartstartinterlocks.co.nz/products

7. Wikipedia. (14 April 2014). Ignition interlock device. Retrieved 21, May 2014, from http://en.wikipedia.org/wiki/Ignition_interlock_device#How_does_it_work.3F

8. global sources. (2014). Products: Ignition interlock devices. Retrieved 21, May 2014, from http://www.globalsources.com/gsol/I/Ignition-interlock-manufacturers/b/2000000003844/3000000196342/28726.htm

9. alcohol.org.nz. (2013). New Zealand statistics. Retrieved 21, May 2014, from http://www.alcohol.org.nz/research-resources/nz-statistics

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