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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Rebecca Samuel
NetID rsam749
Group Number: 173
Website Link: http://infosys110group173.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Yvonne Hong Wednesday 10am
Time Spent on
Assignment:
20 hours Word Count: 1599

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BLOOD-SUGAR-WATCH.
INTRODUCTION
Chocolates, ice-cream, fizzy drinks and anything perceived as good all have one element in
common, sugar. Diet like this have become increasingly common in New Zealand that over
225000 kiwis are diagnosed with diabetes. Epidemic is best to currently summarize this
crisis in New Zealand. However with the blood-sugar-watch managing blood-sugar comes
with ease and convenienve to check on the go to reduce long-term effects and the epidemic
of diabetes. (Diabetes New Zealand).
3. BUSINESS SECTION
3.1 Vision
To accurately and effectively manage blood-sugar levels through the creation of innovative,
convenient and portable technology.
3.2 Industry Analysis: Glucose Meter Manufacturing Industry
Industry: Glucose Meter manufacturing industry. The global industry where glucometers
are manufactured. (Glucose Meter Manufacturing in the US Market Reserach (n.d.)
Force: High/Low: Justification:
Buyer power: High A wide range of glucose meters is available for
customers to choose from. It also varies
according to specific customer needs therefore
increasing bargaining power. (Diabetes Forecast,
2013)
Supplier power: Low Low due to the reason that there are many
suppliers provding the components for glucose
meter which therefore results in low bargaining

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power for suppliers. (Blood Glucose
Manufacturers, n.d.)
Threat of new entrants:

Low Low due to significant entry barriers as there are
already well established glucose meters on the
market making it difficult as new entrants have
to battle for visibility on the shelf which also
makes it difficult to establish a name for
themselves . (Mark D Hughes, 2009)
Threat of substitutes: Low The only alternative is by physically going to the
doctor to get the blood-sugar levels checked
therefore making threat of substitues for
Glucose-meter manufacturing industry low as the
glucose-meter manufacturing industry still has
the competitive advantage of convenience. (Mark
D Hughes, 2009).
Rivalry among existing
competitors:
High Having a wide range of glucometers available for
specific customer needs shows there are
extremely high rivalry among existing
competitors in order to make their product
different as well as to appeal and satisfy each
customers requirements.(Mark D Hughes, 2009).
Overall attractiveness of the industry: Due to the high rivalry among existing competitors
and and buyer power, this industry lies towards fairly unfavourable. Unless the product
introduced is completely innovative, it will be difficult to gain a competitive advantage in
this industry which already has well estbalished companies producing glucometers.
Therefore this is why it is a fairly unfavourable indsutry to enter. (Mark D Hughes, 2009)

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3.3 Customers and Thei r Needs
The customers for this product is mainly diabetic patients and pharmacies. One of the
important needs is for the product is to be less bulky as one of the main problems for the
product is too big to carry (Robin E. S. Miyamoto, 2013). Another vital need is for the
product to to show accurate readings of the blood-sugar level. Without accuracy on the
readings, users of the product could potentially jeapordize their health with false
measurements. Another need the customers require is the ability for a device to remind
them to measure their blood-sugar level as a study conducted on diabetic patients shows
that 30% forgot to meaure their glucose (Robin E. S Miyamoto, 2013).
3.4 The Product and Service
This product meets the needs of the customers as it offers convenience by downsizing the
glucose-meter in order to be worn as a wrist-watch so customers would not feel
embarassed when checking their blood-sugar level in public and on the go. Also, since the
glucometer comes in the form of a watch, users can set an alarm on the watch to remind
them to check their glucose levels when needed. By checking their glucose-level daily, users
are potentially reducing any unwanted or un-noticed risk that involve with having diabetes.
New innovative software will be created so that accurate measurements of glucose will be
measured so that customers can truly trust the result and take actions accordingly.
3.5 Suppliers and Partners
To proceed with the creation of blood-sugar-watch, supplies of LCD would be required in
order to display the readings of the blood-sugar level clearly. We would also need a supplier
to provide a software calibrated to read glucose levels. Once these two main components
are received, production of the blood-sugar-watch will begin.
Two partners required is pharamacies and medical clinics to display and market our
products to patients as without them, this product would not have a chance to survive in
the competing market as diabetic patients would not buy a glucometer without medical
places approving the product first.

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3.6 Strategy: Differentiation
This product will be offered to diabetic patients as well as any medical patients intending on
using it. This product will also be offered to hospitals, pharmacies, private practices and
rest-homes which therefore targets a broad market in the medical field.
The cost strategy will be high as this product will be meeting all the requirements customers
lack from the well established variety of glucometers available on the market currently and
will therefore be prepared to pay for the improvements made on this specific product .
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 due
to the reason that the vision states to use innovative technology. Having well established
glucometers available on the market, this product would have to be made specifically in
accordance with customer requirements ie innovative, so that the product will create value
as well as gain a competitive advantage in a competing market. There can be no other way
this product will survive in the glucose-meter market without making the product as it will
very likely be difficult for a new entrant to succeed in the market in the absence of a truly
major technological innovation (Mark D Hughes, 2009) which therefore relates to the cost
stratgey of differentiation. Also, since this product falls under the manufacturing industry,
the most important key chain will have to be to make the product.
3.8 Business Processes

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3.8.1. PRODUCT DEVELOPMENT PROCESS This process is essential in the value chain activity
of make the product as this is the process where the product will be made according to
specific customer/market requirements. Research will be done on the broad market
consisting of diabetic patients, pharmacies, hospitals etc and the product will be further
analysed and developed in order to completely satisfy the market and create value and gain
a competetive advantage against other glucometers already on the market which also
satisfies the cost stratgey of differentiation and the vision of innovative technology.

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3.8.2. PRODUCTION LINE PROCESS This process is also essential in the value chain activity of
make the product as this is essentially the process in which the product is assembled,
tested, packaged and officially declared as complete to be displayed and purchased which
therefore portrays the selected above key value chain activity. Once the research and
development of the product is complete, the production line process will create value into
each step of production as mentioned above according to the established blueprint and will
therefore set out to follow the vision of creation of innovative, convenient and portable
technology.
3.9 Functionalities
3.9.1. PRODUCT DEVELOPMENT PROCESS
Create prototype of product.
Validate product prototype
3.9.2. PRODUCTION LINE PROCESS
Testing product against blueprint.
Packaging the product.

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3.10 Systems

3.10. 1. QUALI TY MANAGEMENT SYSTEM - This system incorporates all the functionalities of
product development by making sure that that they are completed to the finest quality. This
therefore will support the vision of effectively managing blood-sugar as this system will
guarantee that the product is made and developed perfectly as there will be continuos
review in each crucial stage such as designing, testing prototypes to bluepring, and
validation of the prototype to provide effective results which will be reflected in the final
product.
3.10. 2. INVENTORY MANAGEMENT SYSTEM This system incorporates the functionality of
packaging the product. Each product being packaged will receive its own product number
which will then be noted down by the inventory management system to ensure that each
product will receive its own identity in order to prevent future problems such as theft or
missing products. This therefore supports the vision as by giving each product its own
identity number, the inventory management system is ultimately managing the products
produced accurately and effectively so that customers can enquire about any queries any
time.
3.10. 3. PRODUCT DEVELOPMENT SYSTEM - This system incorporates the functionality of
create prototype of product as this is the system where the whole process of development
will depend on. This system will help by creating a computer-generated model of the
product and virtually test all the functionalities of the product to see if it meets the
standards set. Through the use of this system, the vision of the business is being fullfilled as
innovative technology is created with the testing and developing of 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)

Make the
product or
service
1. Product
Development
process
1. Create prototypes of product.

2. Validate product prototype
Product development
system

Quality management system
Enterprise Resource
planning system.

Decision Support System.
2. Production
line process
1. Testing product against blueprint.

2. Packaging the product.
Quality management system


Inventory management
system
Decision support system.

Transaction proccessing
system.

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CONCLUSION
Overall, glucometers do currently exsist in the market. However, the issue of diabetes still
increasing in New Zealand shows that the exsisting glucometers is not doing an effective
job. Therefore with the help of information systems and technology, a new and improved
glucometer can be manufactured satisfying customer requirements as well as managing the
epidemic of diabetes. Development of the product using computer-generated models and
creating different prototypes, as well as production of the product will need specific
information-systems to create value and meet the requirements. This therefore shows how
an exisiting product can be further improved and developed in order to create a new
innovative product for the ultimate purpose of managing diabetes with the help of
information systems-technology.
REFERENCES

1. Diabetes Forecast. (2013). Blood Glucose Meters 2013. Retrieved from
http://www.diabetesforecast.org/2013/jan/blood-glucose-meters-2013.html

2. Mark D Hughes. (2009, September). Journal of diabetes science and technology. The
Business of Self-Monitoring of Blood Glucose A market Profile. Government
Department Name. Retrieved from
http://www.ncbi.nlm.nih.gov/pmc/articles/PMC2769893/

3. Blood Glucose Manufacturers. (n.d.). Retrieved from http://wholesale-medicial-
supplies.hktdc.com/manufacturers/Blood-Glucose-Monitor-Manufacturers/en/7389-
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4. Robin E. S. Miyamoto. (2013, October). Approaches to Motivating Behavior Change
for Improved Health and Wellbeing. Retrieved from
https://professional.diabetes.org/admin/UserFiles/CE/Hawaii/Approaches%20to%20
Motivating%20Behavior%20Change%20for%20Improved%20Health%20and%20Well
being%20-%20Miyamoto.pdf
5. Glucose Meter Manufacturing in the US Market Reserach (n.d.). Retrieved from
http://www.ibisworld.com/industry/glucose-meter-manufacturing.html
6. Diabetes New Zealand. (2008). About Diabetes Diabetes New Zealand. Retrieved
from https://www.diabetes.org.nz/about_diabetes
7. Diabetes New Zealand. (2008). Facts & Figures Diabetes New Zealand. Retrieved
from http://www.diabetes.org.nz/resources/facts_and_figures