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INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS SECTIONSUMMER 2014

Name Shohei MatsuyamaNetID smat274Group Number: Group 38Website Link: http://infosys2014ssgroup38.blogspot.co.nz/p/d1.html

Tutorial DetailsTutor: Day: Time:

Yvonne Hong Tuesday,Friday

3pm

Time Spent on Assignment:

26 hours Word Count: 1631

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NEW GENERATION PACEMAKERS

INTRODUCTION

In the world, a number of people die every day. However, it is doubtful that those deaths

cannot be preventable because quick reactions for medical treatment might be able to save

many lives. Then why does a delay in treatment happen? This report focuses on the specific

health problem “heart diseases (attacks)” which may result in serious consequences, and

also illustrates how our business can solve the issue through information systems.

3. BUSINESS SECTION

3.1 Vision

Our vision is to be the most customer-centric company and contribute people’s lives and

well-being through providing the innovative products and services that can address one of

the most serious health issues.

3.2 Industry Analysis: Cardiac Health Care Devices Industry

Industry: Cardiac Health Care Devices Industry.

Force: High/Low: Justification:

Buyer power: Low Burns and Pauly (2008) suggest that the

pacemaker market that is industry-specialised

and costly is nearly oligopolistic. This means that

there are few companies in contrast to a number

of buyers “hospitals”. Also there is low incentives

of buyers (Todd, 2010).

Supplier power: Low Pacemakers are composed of several parts such

as generators or leads (National Institutes of

Health, 2010). This means that there are many

alternativres of suppliers who are manufacturing

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those parts in pacemakers.

Threat of new entrants: Low Burns and Pauly (2008) indicates that companies

in cardiac devices industry can be protected by

patents, and also there is a existing strong

relationship between companies and hospitals.

Threat of substitutes: Low Statistics suggest that one of risk factors for heart

diseases is obesity, so exercises can possibly

reduce the risk of heart attacks (The New Zealand

Heart Foundation, 2013). However, there is no

critical solution for irregular heart beating other

than pacemakers.

Rivalry among existing

competitors:

High Companies in this industry can be protected by

patents and the sticky relationship with hospitals

(Burns&Pauly, 2008), which means that obtaining

these advantages would result in high

profitablities. Therefore, firms are always

competing with each other through their

differentiated products or prices.

Overall attractiveness of the industry: Overall attractiveness of the cardiac health care

devices industy is high mainly because pacemakers are almost unsubstitutable as they are

highly industry-specific and the best possible option to manage irregular heart-beating.

Furthermore, low buyer/supplier power enbales firms to choose ideal suppliers and sell

products to a wide range of buyers. While the competition in this industry is relatively fierce,

the possibility of new entrants is low because of the protection of patents or the

relationship with hospital.

3.3 Customers and Their Needs

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Statistics indicates that 1/18 of adults in New Zealand have the posibility of heart attacks

(The New Zealand Heart Foundation, 2013). This means that potential customers are all of

those people who have heart diseases and cannot control their heart conditions without

pacemakers in New Zealand. Their needs for pacemakers are fairly high because

pacemakers are the best possible option to keep heart-beating regularly, and also they can

reduce people’s concerns about unstable heart conditions and increase their survival rate.

3.4 The Product and Service

While demands for pacemakers are high, there are still some problems for existing

pacemakers such as St. John’s medical alarm system (St. John Ambulance Australia, 2012).

For example, existing pacemakers require the users to call 911 or push the emergency

button in order to inform their urgent problems. However, some of them die due to a delay

in treatments resulted from their disablity for calling/pushing processes (Beck, 2012). On

the other hand, our products can automate those calling or pushing button processes

through providing heart condition automatic scanning and GPS systems in pacemakers.

These systems can automatically scan the heart attack levels and send the information to

911 and hospital, and the ambulance can come to the place where the patient is under

heart attacks through the GPS system. Since calling 911 or pushing emergency button are

unnecessary in our pacemaker systems, our products can dramatically reduce the time to

rescue and also overall death rates from heart deseases.

3.5 Suppliers and Partners

There could be many suppliers such as GPS device, heart condition scanning devices, signal

generating devices manufacturers in addition to the basic components suppliers such as

generator/lead manufacturers. Firstly, the contract with generator and lead manufacturers

is required to make a pacemaker itself. Then, our products need to contain the GPS and

heart-beating automatic scanning devices, so GPS device manufacturers and automatic

scanning device manufacturers should be our suppliers. Partners can be hospital and ERT

(Emergency Response Team) in order to set up the information network with one central

database. Another partner is a software company that can make those network systems and

database. If necessary, we need to train our partners such as hospital or ERT in order to 4

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ensure how our networks are working, and how they can manage and quickly response to

information from customer’s pacemakers.

3.6 Strategy: Focused High Cost Strategy

The competitive scope is narrow. Even though overall populations of pacemaker users are

wide, our targets/customers must have specific cardiac health problems “heart diseases”.

The cost strategy is high because our products are focused on high quality, and also our

vision is to provide innovative products that can satisfy customer’s needs.

The overall strategy is therefore Focused High Cost Strategy.

3.7 Value Chain Activity: Make the products and services

The most important value chain activity for this business is Make the products and services.

In order to provide ideal products and complete our mission, manufacturing processes must

have the first priority because many important sensitive devices are put into the

pacemakers, and they can be the key stuffs to make the overall systems which would

differentiate our products from others. Although service after the sale and technology

development are also important, making the products and services is the basis of our

business.

3.8 Business Processes

3.8.1. QUALITY CONTROL PROCESS- One of the most important processes is the quality

control process because our vision focuses on the quality of innovative products, and our

success hugely depends on the quality management. This process includes three steps that

are acceptance of sample, process control, and trouble shooting. At the first step, we

examine whether the quality of products or components from suppliers is acceptable

through sampling tests. If the quality is inappropriate, we may re-consider the components

or raw materials. Secondly, we assess each process and find out which process actually

affects our final products’ quality. If any problem is identified in the process control step,

then there is still possibility that we consider changes in suppliers, raw materials, or product

lines. After all those steps in the quality control process, pacemakers are provided for 5

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customers. The quality assuarance management system independently managed by the

quality assurance department supports this process, and the quality control report from this

department can be shared throughout the organisation.

QUALITY CONTROL PROCESS;

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3.8.2. ORDER PROCESSING PROCESS – The order processing process is also important

because we basically operate several product lines with several suppliers in order to make

one pacemaker, and quick integrations are necessary to complete/process customer’s

orders. In this process, several departments manage the order information centralised in

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the organisation, and all supply chains can share that information in oder to fulfill the order

efficiently.

ORDER PROCESSING PROCESS;

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3.9 Functionalities

3.9.1. QUALITY CONTROL PROCESS

Identify if the quality of products/parts is acceptable. Modify the product lines or raw material by quality control reports.

3.9.2. ORDER PROCESSING PROCESS

Manage each product line information for orders. Identify what we need by centralised/shared information.

3.10 Systems

3.10.1. QUALITY ASSURANCE MANAGEMENT SYSTEM- This system can identify

whether the components or final products meet a certain level of quality that is required to

satisfy customer’s needs. If necessary, this system may suggest the necessity of changes in

suppliers or raw materials.

3.10.2. PRODUCT LINE MANAGEMENT SYSTEM– This system manages all product line

operating information and centralise/share them in the organisation. Therefore, we can

react to customer’s order efficiently and effectively.

3.10.3. PRODUCT RESOURCE MANAGEMENT SYSTEM– This system can find out what

resources such as raw materials or product lines are necessary/unnecessary for our business

operation. Hence, we can identify the ideal resources that can make our operation better.

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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

products and

services

1. Quality Control Process

1. Identify if the quality of products/parts is acceptable

2. Modify the product lines or raw material by quality control reports.

Quality Assurance Management System

Product Resource Management System

Decision Support System

Decision Support System

2. ORDER

PROCESSI

NG

PROCESS

1. Manage each product line information for orders.

2. Identify what we need by centralised/shared information.

Product Line Management System

Product Line Management System

Supply Chain Management System

Decision Support System

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CONCLUSION

This report has illustrated how our vision can be completed through providing particularly

important business processes and their functionalities that are supported by appropriate

systems. Since those all processes/functionalities are supported by information systems

properly, our business can maximise its productivity, and differentiate the products. As a

result, we can create customer satisfaction more than other firms.

REFERENCES

Beck, M. (2012). Many People Ignore Signs, Delay Treatment of Heart Attack. Retrieved from

http://online.wsj.com/news/articles/SB10001424052702304432704577347723157872

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Burns, L. R. & Pauly, M. V. Price Transparency For Medical Devices. Retrieved from

http://content.healthaffairs.org/content/27/6/1544.full

National Institutes of Health (2010). Heart pacemaker. Retrieved from

http://www.nlm.nih.gov/medlineplus/ency/article/007369.htm

St John Ambulance Australia. (2012). Retrieved from http://www.stjohnlifelink.com.au/

The New Zealand Heart Foundation. (2013). General Heart Statistics for New Zealand.

Retrieved from https://www.heartfoundation.org.nz/know-the-facts/statistics

Todd, R. (2010). Kiwis lead in death from heart attacks. Retrieved from

http://www.stuff.co.nz/national/health/3608522/Kiwis-lead-in-death-from-heart-

attacks

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