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INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS SECTION2014

Name Andrea En-Yi LimNetID alim491Group Number: 345Website Link: http://infosys1102014s1group345.blogspot.co.nz/

Tutorial DetailsTutor: Day: Time:Kit-Wah Wednesday 1pm

Time Spent on Assignment: 31 hours Word Count: 1,575

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THE GLEAMINTRODUCTION

Road cyclists today face a myriad of dangers when cycling on roads. Accidents, both serious

and not so serious, are aplently and after much research, we realised that majority of such

accidents occur at intersections. The lack of indication from cyclists and unawareness of the

cyclists presence from drivers cause such accidents and has led us to improve on a

compulsory safety element for cyclists in New Zealand: helmets.

The Gleam is a better, more functional helmet that has indicators built into the back of the

helmet. By pushing on the reattachable buttons on the bicycle , it sends a Bluetooth signal

to the indicators, indicating if the cyclist plans to turn left or right. Designed with the cyclist’s

utmost safety in mind, drivers would be able to see the cyclist’s intentions and predict his or

her next move. We believe that the Gleam will reduce the risk of fatal accidents occuring

and making roads safer for all road cyclists.

3. BUSINESS SECTION

3.1 Vision

To provide reliable, high quality products geared towards creating safer roads for cyclists

across the globe.

3.2 Industry Analysis: Cycling Safety Industry

Industry: Cycling Safety Industry

Force: High/Low: Justification:

Buyer power: Low It is compulsory for anyone who cycles in New

Zealand to wear helmets when they ride. Buyers

have no choice but to own a helmet, and they do

not have an option of not wearing a helmet due

to regulations. Hence, buyer power is low. (NZTA 2

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2010)

Supplier power: Low This industry has many choices of suppliers to

choose from as it uses standardized parts, making

it easy to change suppliers when needed. (Global

Sources 2014)

Threat of new entrants: High It is easy for new competitors to enter the

industry as there are low barriers to entry.

Starting up new businesses in New Zealand is

easy and cycling is growing in popularity, about

4% growth in cycling every year. With a high

demand of customers, profitability is high and

new businesses are attracted the enter the

market. (Work and Income 2014, CAN Report

2006)

Threat of substitutes: Low Helmets are essential for cyclists in New Zealand,

and there are few alternatives that cyclists can

use that provide the same amount of head

protection. The law states clearly that a safety

helmet with the right standards must be worn

during riding. (Road User Rule 2004)

Rivalry among existing

competitors:

High There is a high number of competitors that

provide a wide variety of cycling safety

accessories. As seen from the New Zealand

Herald, many bicycle stores are closing due to the

influx of big cycling chains. Rivalry is high and

competition is fierce in this market. (NZ Herald

2011)3

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Overall attractiveness of the industry: The cycling safety industry is relatively attractive to

enter as supplier power is low and entering the market is easy. Cycling is indeed growing in

popularity and there is a high demand for bicycles, and by default, their compulsory

complementary product, helmets. It is easy to enter the market despite the high rivalry as

our product is innovative and different from many other cycling safety accessories.

3.3 Customers and Their Needs

Our target group of customers are road cyclists. Approximately 9 out of 10 reported cyclist

casualties occurred on urban roads, from a time span from 2008 to 2012, and despite the

“Share the Road” campaigns, road cyclists still face a high level of danger from oncoming

traffic. 81% of crashes occur at intersections and cyclists cannot rely on old-fashioned hand

signals to indicate a change of direction in the long run. They need quality, protective gear

that can not only protect them during a crash but also reduce the risks of such accidents

occuring. (Crash Factsheet 2013)

3.4 The Product

Our company aims to further reduce this risk, meeting the needs of road cyclists in New

Zealand. By creating the Gleam, we feel that our product can reduce such crashes on the

roads. The indicators built onto the helmets can show an intended change of direction when

the buttons are pushed. We believe that having indicators built into the helmet will add

value to cycling as it will make cycling safer.

3.5 Suppliers and Partners

Suppliers:

1) Helmet Suppliers – We intended to source from quality helmet makers such as Giro

to provide reliable helmets with the maximum amount of protection for customers.

2) LED Light Suppliers – Cree LED Lighting will be supplying the LED lights for the

indicators on the helmets. They have a great reputation in producing trusty LED light

parts, and the lights on the helmet must be reliable as other motorists must be able

to see the cyclists.

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Partners:

1) Bike Shops in New Zealand – We intend to sell the Gleam through stores such as Bike

Barn and AvantiPlus stores New Zealand wide. Partnering with them gives us a

platform to market our product.

2) Courier Companies – Besides selling the Gleam in physical stores, we aim to sell the

helmets online through our website. By partnering with DHL, we would be able to

get a good price for shipping and send the goods quickly to Kiwi customers who

prefer online shopping.

3.6 Strategy: Focused High Cost

Our cost strategy used is a high cost one. We aim to provide an product that is competitively

priced, using the best sourced, quality materials. Safety cannot be compromised and we

echo that belief by using the finest supplies to produce the Gleam.

We are looking towards a narrow market. The Gleam caters to primarily road cyclists, as

they would require such indicators compared to other recreational cyclists who cycle on

pathways.

The overall strategy is therefore the Focused High Cost Strategy.

3.7 Value Chain Activity: Procurement

The most important value chain activity for this business is Procurement.

It is vital to focus on attaining the best quality supplies from suppliers. Our business prides

itself in producing the Gleam with high standards, as seen in the vision, and this can only be

done by using good quality parts. This relates to our strategy in order to retrieve the best

quality materials, we must be willing to pay the high cost related to the supplies.

3.8 Business Processes

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3.8.1. SUPPLY TESTING PROCESS – Our company prides itself in providing the highest quality

product as safety is our number one priority. This is encapsulated in our vision, and hence,

we aim to gather the best and most competitively priced supplies from suppliers. In order to

do so, we have to identify good suppliers that can provide us with the reliable materials that

we need at the best prices. The testing process is rigorous, affirming that we use the best

suppliers available.

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3.8.2. CUSTOMER FEEDBACK PROCESS – This is another process that is paramount to our

business’s success. We aim to provide the best for our customers and want to continuously

provide quality products to them. One main way to do so is to gather feedback from

customers. Their feedback will be taken into consideration and helps ensure that the Gleam

is well suited to their needs. Constant input from customers help improve and maintain the

quality of our product, and gather feedback about the suppliers we have purchased from.

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3.9 Functionalities

3.9.1. SUPPLY TESTING PROCESS

Acknowledge quality problems with supplies Validate order of supplies

3.9.2. CUSTOMER FEEDBACK PROCESS

Send surveys to customers Notify departments of new feedback

3.10 Systems

3.10.1. SUPPLY BENCHMARKING SYSTEM – During the supply quality testing, data is keyed

into the system whereby supply is checked and the results recorded into the system. If the

data does not meet the standard pre-set in the system, it is highlighted. This system helps to

maintain the standard of our product, as it ensures that managers can easily make the right

decision before purchasing from the supplier.

3.10.2. ORDER PROCESSING SYSTEM – After a stringent testing process, managers can decide

which suppliers to eventually purchase from and send the order through the system. The

order is entered into the computer and immediately sent to suppliers. This guarantees that

there would be no delay in the transaction between supplier and our business, and our

product can be sent to the customer as soon as possible.

3.10.3. FEEDBACK ANALYSIS SYSTEM – After receiving feeedback from customers, this system

stores and filters the type of feedback received. Responses are filtered and then sent to

specific departments for analysis. Based on the compliments or complaints, managers can

make a decision to set goals that maintain the high quality standards or improve on the

product.

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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)

Procuremen

t

1. Supply Testing Process

1. Acknowledge quality problems with supplies

2. Validate order of supplies

Supply Benchmarking System,

Order Processing System

Supply Chain Management System,Transaction Processing System

1. Customer Feedback Process

1. Send surveys to customers2. Notify departments of new feedback

Feedback Analysis System Customer Relationship Management System

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CONCLUSION

The Gleam is a product that will bring cycling safety to a whole new, revolutionary level. We

believe that it will change the way people view cycling: from a view that cycling is a

dangerous sport, to another opinion that cycling is a safe mode of transport. Our

organization will continually rely on the use of Information Technology to upgrade the

Gleam and any systems weaving the company together. We hope that our product will fulfil

our company’s ultimate aim of making roads safer for every cyclist, everywhere.

REFERENCES

1. New Zealand Transport Agency. (2010). About Cycling. The Official New Zealand Code for Cycling (pp.). (Original work published 2010). Retrieved from http://www.nzta.govt.nz/resources/roadcode/cyclist-code/about-cycling/rules.html

2. Global Sources. (n.d.). Bicycle Accessory manufacturers & Bicycle Accessory suppliers. Retrieved May 21, 2014, from http://www.globalsources.com/manufacturers/Bicycle-Accessory.html

3. Work and Income New Zealand. (n.d.). Business Training and Advice Grant. Retrieved May 22, 2014, from http://www.workandincome.govt.nz/individuals/a-z-benefits/business-training-and-advice-grant.html

4. Cycling Advocates Network. (2007). Facts About Cycling in New Zealand. CAN Cycling Facts, Retrieved from http://www.mtbnz.org/wordpress/wp-content/uploads/2011/09/CAN_NZ+Cycling+Facts.pdf.

5. Parliamentary Counsel Office. (2004). Land Transport (Road User) Rule 2004. Retrieved May 23, 2014, from http://www.legislation.govt.nz/regulation/public/2004/0427/latest/DLM303675.html?search=qs_all%40act%40bill%40regulation_%25s_resel

6. Adams, C. (2011, October 22). Bicycle chains bump small stores. The New Zealand Herald, Retrieved from http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10760858 .

7. Ministry of Transport. (2013, November). Crash Statistics for the year ended 31 December 2013. Crash Factsheet, Retrieved from http://www.transport.govt.nz/assets/Uploads/Research/Documents/cycling-

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crashfacts-2013.pdf.

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