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INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS SECTION SUMMER 2014 Name NetID Group Number: Website Link: Tutorial Details Time Spent on Assignment: Shiyi Lu slu392 088 http://infosys2014ssgroup88.blogspot.co.nz/2014/01/deliverable1.html Tutor: Day: Time: Yvonne Tuesday&Friday 14:00-15:00 20 Hours Word Count: 1645

FRUIT TRACKER
INTRODUCTION

In the 21st century, many chemicals and pesticides are used on fruits to inhibit the growth of various weeds, prevent bacteria and viruses and kill pests such as rodents and insects. However, these chemicals and pesticides are proven to be harmful when consumed by people, especially with young children, it is found to cause cancer in later life. During September last year,an incident occurred where severe rotting of apples were exported to China. The rotting was casued by the fungus Neofabraea alba (Ben Chapman-Smith,2013). It is no doubt that New Zealand fruit safety has had some serious problems, and the fruit safety issue is proving to become a more and more important role for our daily life.
3. BUSINESS SECTION 3.1 Vision

To be Earths most customer centric fruit seller; to provide the most superior and qualityassured fruits with QR code to everywhere throughout the world.
3.2 Industry Analysis: Fresh produce Industry

Industry: Fresh produce Industry. We aim to sell superior quality fruits with high technology in the Fruit Industry.

Force:

High/Low:

Justification:

Buyer power:

High

The fruit market is a huge market which sell various categories of fruits. Therefore, customers have a large number of alternative choices for each product. A report by the University of Sydney indicates that the value of New Zealands kiwifruit exports was NZ$1.45 billion during 20082009 season (Skallerud, Kare and Olsen,
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Svein,2011), which means the demand of fruit is large and the market needs a large number of fruit sellers to satisfy the customers needs.

Supplier power:

Low

Due to most supplier of our product are farmers, we have many alternative choices for each category of fruit. There are also a large number farmers who grow the same kind of fruit.

Threat of new entrants:

High

It is easy to enter the fresh produce industry such as small fruit retailers which has low barriers to entry and low start-up costs. With advances in technology, some medicines gradually replace the nutritional needs that can be acquired from fruits. For example, people would take Ascorbyl Palmitate to supplement Vitamin C rather than taking fruits.

Threat of substitutes:

High

Rivalry among existing High competitors:

Fruit is a very elastic product that any little changes on price can lead to a large change of demand of quantity of fruit(Dave Weatherspoon, 2013). Therefore, cheaper retail price will lead to the increase of customers.

Overall attractiveness of the industry: The Fresh produce industry is unattractive due to overall high competitive forces.
3.3 Customers and Their Needs

Supermarkets are our largest customers who would like to order a large quantity and categories of fruits such as Countdown, also, our products are sold to individual customers. We sell a wide range of fruits to customers throughout the world who are willing to buy the
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most superior and quality-assured fruits or has lost confidence in the quality of fruits. Although many organic fruits and vegetables are now out in the markets and are advertised to be pesticide free, consumers are still prone to these chemicals as traces of them can still be found when they are tested. In a recent examination carried out by the Canadian Food Inspection Agency, nearly half of organic fruits and vegetables contained traces of pesticides(Joanne Levasseur and Vera-Lynn Kubinec,2014). Also, we are able to provide inseason fruits to out-of-season countries. Moreover, in a recent report, fruits are a vital part of everyday life, and the nutrients contained are necessary for a healthy lifestyle and growth in children(Joanne Levasseur, Vera-Lynn Kubinec and Holly Moore, 2014).
3.4 The Product and Service

As a result of this, we have developed a solution of fruit safety and dealing with this problem is Fruit Tracker. Information nowadays can be easily accessed on the internet. Especially with thriving market of smart phones, people can essentially carry the internet everywhere they go. Therefore, we propose to harvest the fruits and classify them firstly, and then, label every fruit and vegetable with a specialized QR (quick response) code. People can scan these codes with their smart phones and this would take them into a link which is made by us that provides all the relevant description about the product. The code will be linked to a specified information page on the internet which shows where the product was grown, test results for pesticides, when the product was harvested and even the producers so consumers will know whether it is organic and how fresh the product is. Our link also provide where the product was sent to, the comments left by customers and health link to provide healthy advice for fruit eating. In contrast, labelling on bunch of fruit or packaging bag can easily be swaped with bad quality fruit.
3.5 Suppliers and Partners

Farmers are the main suppliers for our business. In the beginning of our business process, the farmers grow and harvest the fruits, after that, we buy original fruits from farmers and classify each fruit into different boxes. The manufacturer of boxes is our secondary supplier, where we need a large quantity of boxes to package and deliver the fruits.

Delivery company (airlines) is one of our partners. During the delivery process, we need to deliver goods from our warehouse to each specific surpermarkets or individuals. For instance, Countdown orders one hundred boxes of Janpanese Fuji apples, we need to deliver those Fuji apples from Janpanese warehouse to New Zealand by airline. Also, smartphone are able to search website by scaning QR code. Hence, browsers can also be our partner where QR codes can be developed that would be scaned to acquire the relevant information of products through our links.
3.6 Strategy: Differentiation

Broad market: We sell our quality-assured fruits to the world which means our fruit market faces all customers who want to buy fruits. Therefore, our competitive scope is broad market. High cost: According to our vision, we aim to sell the most superior and quality-assured fruits with high technology providing security which means the price of our fruits is much higher than other normal fruit sellers. 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. According to our product, we propose to label every fruit and vegetable with a specialised QR (quick response) code that people can scan and acquire information. Hence, our primary priority is to focus on ensuring each fruit is labeled correctly with the relevant QR code which provides our customers with quality assured by security.
3.8 Business Processes
3.8.1. INVENTORY CLASSIFICATION PROCESS Fruits classification process starts after the

fruits are received from farmers. First step is to check the quality of the goods, and then workers will classify the batch and category of goods in warehouse according to relevant information such as when they were harvested and test results for pesticides. Meanwhile, labeling QR codes on fruits that has the same relevant information and creating
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corresponding links that incorporate all information of each product with inventory management system.

3.8.2. TESTING PROCESS

Testing process aims to test our QR code service by our

techonology department who is in charge of technology development and technical problems, making sure that each QR code is linked to the right webpage with products testing system. Once we find any errors during testing, we fix them and generate reports of result.

3.9 Functionalities
3.9.1. INVENTORY CLASSIFICATION PROCESS

Classify the fruits depending on particular information Label the specific QR code on each fruit

3.9.2. TESTING PROCESS

3.10 Systems

Test QR code service for availability Fix the bugs

3.10.1. PRODUCT TESTING SYSTEM

Product testing system involves testing process to test

QR code service whether it is available which is controlled by technology department. Due to our product, labelling a QR code on each fruit is our business competitive advantage compared to others. Therefore, we have to make sure each QR code is able to link to its relevant webpage accessed by every customer. Moreover, product testing system is used to fix the bugs after notification system report the bugs.
3.10.2. INVENTORY MANAGEMENT SYSTEM According

to our companys vision, quality is our

most significant competitive advantage, therefore, we have to make sure the fruits are kept in good condition from farmers until customers. Then, workers will classify the batch and categorise the inventory according to relevant information such as when they were harvested and test results for pesticides. Meanwhile, the same information of inventory will be labelled by QR code. Finally, after inventory is sold out, inventory management system has to record each inventory transaction.
3.10.3. NOTIFICATION SYSTEM Notification system is used to report any wrong information

and technical issues during testing process. Once the technology department finds out the mistake of QR code service, the notification system will operate to notice workers where the bug is. Notification system will generate a report to product testing system to fix them. There will be reports generated of database testing until the test result is positive.

3.11. Summary Table: Value Chain to Systems

Value Chain Activity Make the product or service

Processes 1. Inventory Classification process

Functionalities 1. Classify the fruits depending on particular information. 2. Label the specific QR code on each fruit.

Specific Information System(s) Inventory management system Inventory management system Product testing system Notification system

Broad Information System(s) Enterprise Resource Planning System Collaboration System

2. Testing process

1. Test QR code service for availability. 2. Fix the bugs.

Decision support system Decision Support system

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CONCLUSION

Facing on nowadays serious fruit safety issue, the best solution would be our Fruit Tracker. It is not only providing the most superior and quality-assured fruits with QR code, but also connecting farmers and customers closely. People would not be worried about the pesticide found on fruits anymore because we will track our fruits and record all information step by step.
REFERENCES

1. Ben Chapmen-Smith (2013, Sep25). The New Zealand Herald. Rot find Halts NZ China apple export. Retrieved from http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11129 918 2. Skallerud, Kare; Olsen, Svein (2011). Export Market Arrangements in Four New Zealand Agriculture Industrues: An Institutional Perspective. Journal of International Food and Agribusiness Marketing 23 (4): 310329. doi:10.1080/08974438.2011.621841. 3. Dave Weatherspoon(2013). Price and Expenditure Elasticities for Fresh Fruits in an Urban Food Desert. Urban Study January 2013 vol. 50 no. 1 88106.doi:10.1177/0042098012448555 4. Joanne Levasseur, Vera-Lynn Kubinec and Holly Moore(2014,Jan8). CBC News. Pesticide residue found on nearly half of organic produce. Retrieved from http://www.cbc.ca/news/canada/manitoba/pesticide-residue-found-on-nearly-halfof-organic-produce-1.2487712 5. Joanne Levasseur, Vera-Lynn Kubinec and Holly Moore(2014,Jan10). CBC News. Pesticide levels on some organic produce indicate use was deliberate. Retrieved from http://www.cbc.ca/news/canada/manitoba/pesticide-levels-on-some-organicproduce-indicate-use-was-deliberate-1.2491167

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