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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Sang hyuck Yi
NetID syi102
Group Number: 45
Website Link: http://infosys110fc045.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Nicholl Oblitas Costa Monday 2.00pm
Time Spent on
Assignment:
Word Count: 1484

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DELIVERABLE 2
INTRODUCTION
Merchandise industries are losing potential revenues and profits as they fail to deliver goods
after operational hours, where as the work force and the habits of consumers are extending
over the normal operational hours. Prolonging the closing hours to meet the demands
incurs additional costs, yet it is considered a common practice -albeit an inefficient one. By
developing a mechanised system that delivers goods after hours, with automated payment
and delivery of goods, it will not only reduce store operational costs and staffing costs but
will provide access to goods for consumers anytime of the day. A mechanised system where
goods selected outside the shop window (via touch screen) will be collected from the
storage and fed through a channel to the dopbox outside the shop. It adopts the vending
machine mechanics but on a larger scale, and payments will be processed electronically.
3.BUSINESS SECTION
3.1 Vision
To create change through automation of after hour purchases, reducing costs and delivering
efficiency values to all convenience stores crafted to its individual needs.
3.2 Industry Analysis:
Industry : Automation of delivery of purchased goods after hours
Force: High/Low: Justification:
Buyer power: Low The amount of suppliers for automation of
delivery of purchased goods are very limited, as
the industry itself is very specified. Also an
industry that specializes afterhours are minimal
and our customers have little or no alternatives.
In addition, the vending Market within New

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Zealand is stagnant and non innovative
(Euromonitor International, n.d) hence our
product will deliver a service that has little or no
alternatives.
Supplier power: High The process of manufacturing the mechanics of
the product is very specific, and must be handled
by a company that designs and manufactures
vending machines ( Veding Direct, n.d) and we
must incorporate software developers that will
integrate all the systems together
Threat of new entrants: Low The threat of new entry is low due to the fact that
our product relies heavily on contracts and
location. Where automated deliver systems rely
on contracts (IBIS World, April) and the target
market is very narrow, with first mover advantage
it will pose as a difficulty to find available
customers.
Threat of substitutes: Low Threat of substitute is low, as subsitute to the
automated delivery system for our customers are
simply operating the convenience store.
According to the Western Washington Univsersity
wages expense is the highest after purchases (IBIS
World Pty.Ltd as cited in Western Washington
University, n.d, pg 6) therfore the alternatives are
significantly costly and inefficient.
Rivalry among existing Low Rivalry amongst existing competitors are low, as

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competitors: our industry focuses on delivery of goods after
hours, and there are currently no systems within
the business environment that offers anything
similar to our product.
Overall attractiveness of the industry: Overall attractiveness of the industry is very high,
with little or non existing alternatives for both our customers and minimal threat of interest
it indicates our product will retain stable and profitable position for long duration of time.
With first mover advantage, there are no existing competitors where our success derives
from technology. The overall attractiveness of the industry will be heaily relied upon the
product's ability to combine IT/IS application together and deliver value in the most
innovative form within the local and global markets.
3.3 Customers and Thei r Needs
Our main target customers would be convenience stores that are located within the Central
Business Districts and tertiary education institutions which require maximum efficiency to
generate revenue and be flexbile for the sake of conveneince. With work hours becoming
more irregular in order to accommodate dynamic, global business environments, late night
shifts and extensive night activities have increased significantly. Furthermore, with tertiary
students working late into night, and enjoying night activities it is only natural that demand
for goods have increased in correlation with activities surrounding the environment. The
need for our customers is that convenience stores must meet these demands effectively to
increase revenue and be constantly operational- flexible
3.4 The Product and Service
Our product will satisfy the needs of our customers as it will deliver maximum value with
lesser costs. In order to accommodate these extensive activities, longer operational hours
are necessary which directly translates to costs of operation; staff wages, electricity etc. By
employing our automated system of delivery of goods, all demands have been met without
incurring costs sumamrized above -accentuating effeciency. Whilst meeting costs they also

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accommodate all type of customers 24 hours a day not only increasing revenue but also
retain its flexibility.
3.5 Suppliers and Partners
Our initial supplier would be the manufacturer for our inventory access system. They must
manufacture our mechanical system that brings products out to the delivery bin. The
mechanical systems will operate similar to a vending machine, however drawing products
from a separate storage.
Our other supplier will be a software company that will programme the system that deals
with processing order from the smart screen interface, electronic payment, and collecting
goods from the product compartment.
3.6 Strategy: Focused High Cost Strategy
Our competitive scope would be narrow market as we are focusing on small convenience
stores like Munchy Mart, where our product will deliver value through offering core
competencies, tailoring to their needs (outlined above.) Our product will be most adpt for
stores that are selling in small numbers and offering selectable goods ( wide range of
individual purchases) like Munchy Mart. Our product only targets businesses with similar
business model. Differentiation would be our Cost strategy as there are low number of
substitutes and also there are minimal rivalry amongst existing competitors where this
deliver value few or none can offer.
3.7 Value Chain Activity: Marketing and Selling of the Product or Service
Our vision explicitly states delivering efficiency to all convenience stores, and from
corporate perspective, it is obvious that we generate the most value through the process of
marketing our products, and eventually selling our products to convenience stores.
Acquiring new customers guarantee new revenue streams, generating more cash to
promote our product to expand into other convenience stores complying with our vision
most aptly. Also with our strategy of differentiation it is imperative to actively acquire and
offer our products to our customers and exploit the niche market to the maximum- where

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our market is considered very narrow and targeted. By emphasising Marketing and Selling of
Product value chain, we can effectively position ourselves within the market quickly and
comply with our vision of selling our product to all convenience stores.
3.8 Business Processes
3.8.1. PRODUCT ADVERTI SMENT ORDER PROCESS




















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3.8.2. POTENTI AL CUSTOMER ANALYSI S PROCESS-.





















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3.9 Functionalities
3.9.1PRODUCT ADVERTI SMENT ORDER PROCESS
Create and send a purchase order
Check if the advertisment matches order
3.9.2. POTENTI AL CUSTOMER ANALYSI S PROCESS
Update database for new customers
Create evaluative reports
3.10 Systems

3.10.1. PURCHASING SYSTEM -
A system where it incorporates are transactions, payments and financial decision data and processes
them into the database. This system will transform data into financial, transactional data which will
assist in future sales and accounting actions taken by the company. This will aid in future acquisiton
of materials, advertisments, software/hardware that will assist in the company's vision of supplying
all convenience stores with our product. By incoporating the marketing department and financial
departments the corodination between the two will help the company advertise more efficiently
and expose our company
3.10.2. ANALYSIS MANAGEMENT SYSTEM-
This system is designed for the purpose of managing all the data about our current and potential
customers, and it incorporates departments ranging from Department of Market Research to
Executive Board and also inetgrates all the databases relevant to market research. This system
streamlines are data transfers within the company. By investigating on our future clients, we are
able to identify ineffeciencies and faults that our product could remedy. Our vision is to create
change through increase of efficiency values and with organised data about our current clients and
future clients will aid the company in realizing it's vision.
3.10.3. CUSTOMER CATEGORIZATION SYSTEM -
By categorizing our customers based on our databases and reports we have compiled from our
Analysis Management System, we can categorize our customers into specific categories in respect to
customer size, number of goods sold, location, size of the store etc. By employing this system we will
be able to have reference to how we can adopt our product to individual customers. Our product
relies on individual customization of the stores- as mentioned in the vision, "crafted towards its
individual needs." Hence, this system will allow the company to draw out neccessary templates for
future customers.

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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)

Marketing
and Selling
of the
Product and
or Service
1. Product
Advertiseme
nt Order
Process
1. Create and send purchase order.

2. Check if advertiment matches order.
Purchasing process system

Order Management system
TPS

TPS
2. Potential
Customer
Analysis
Process
1. Update database for new customers.

2. Create evaluative reports.
Data Management system


Process Data system
DSS

DSS/EIS

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CONCLUSION
In conclustion, the combination of Information Technology and existing products could
exploit market niches that represents efficiency and innovation. Our product of Automated
Delivery of Purchased goods, that functions similarily with a vending machine but on a store
base- which incorporates electronic banking and cellular payments it creates a whole new
experience for the consumers. However most importantly, our customer can now generate
revenue with the reduction of operational costs, and increase it's effeciency level. It is said
to be, technology has an active part in driving the vending industry (Business Opportunities,
n.d) and our prodcut effectively brings existing form of IT and IS and create a new breed of
prodcut that has yet to be launched.
REFERENCES

Eurominator International (n.d.) Vending in New Zealand .
Retrieved from http://www.euromonitor.com/vending-in-new-zealand/report

Vending Direct (n.d). Why Choose us? (n.d)
Retreived from http://www.vendingdirect.co.nz/why-choose-us/

IBIS World (April, 2014) Vending Machine Operators in the US: Market Research
US (April, 2004)
Retrieved from http://www.ibisworld.com/industry/default.aspx?indid=1113

McDermott Michael J (n.d) Vending Machines Provide Entry To Business Ownership
for many
Retrieved from http://www.busop1.com/vending.html

Western Washington University (n.d) Center for Economic Vitality pg 6.
Retrieved from http://www.pacificedc.org/Library%Docs/Convenience%20Stores%
Inustry%20Snapshot.pdf