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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Jeewoong Han
NetID Jhan189
Group Number: 45
Website Link: http://infosys110fc045.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Nicholl Oblitas Costa Monday 2~3PM
Time Spent on
Assignment:
10hours Word Count: 1336

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DELIVERY2
INTRODUCTION
Since the information age has begun the value of time became more imortant than before it was used to be and therefore the world is
operating 24hours to go forward or to leave rivals behind. However the number of 24hours opeing convenience is not enough and which
creates the inconvinience. Unfortunately to preceed expanding opening hour the convience stores owners would suffer from cost of labour
and also the insecurity during late night.
3. BUSINESS SECTION
3.1 Vision
To become the worlds hand and foot so we support their weakness and troubles with our innovations
3.2 Industry Analysis: Merchanised supermarket industry
Industry: Mechanised supermarket industry.
Force: High/Low: Justification:
Buyer power: Low Buyer power is low as currently there is no

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supplier of this product in this market so buyer
has not many choices
Supplier power: High Since consumers do not have many options to
choose and no other suppliers in this market
currently supplier power is high
Threat of new entrants: Low Totally cost to set up is relatively high and it
requires a high technology as it includes
computer system and robot system therefore it is
difficult for other suppliers to enter this market

Threat of substitutes: High Customers do not have many alternatives for this
as the only alternative for this is hiring a worker
to work at late night.
Rivalry among existing Low There are many players in this market therefore
rivalry among existing competitors is high in this

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competitors: market.
Overall attractiveness of the industry: It is a quite attractive industry in accordance with Porters Five Forces Model. Most of the forces are at
the ideal level with one exception which is Threat of substitutes. However the alternatives for this is hiring a worker to work at late night and
which will not be competitive to our product in terms of security
3.3 Customers and Thei r Needs
Our customer is essentially any player in supermarket industry which includes from a small shop like Muchy mart and convience store to a big
supermarket(ie Pak n save, Countdown) as to the reason they are struggling with management of opening hour because this can simply be
worked by hiring extra workers to work at late night but it requires a lot of cost due to the late night pay rate.
Our customers needs are to release the stores being crowded in peak times and to enable them to shop even after hours without hiring an
extra work to work at late night
3.4 The Product and Service
Our product/service will satisfy the customers need by providing a large vending machine set up on the wall of the building of stores and
deliver their consumers wants even after opening hours, also it will release the congestion of the store during peak times since the customer
will get another counter. Another advantage of our product is guaranteeing security which have been a fatal problem since 1970s when the
24hours convenience store advented.


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3.5 Suppliers and Partners
Our main supplier would be the manufacturer for our inventory access system. They manufacture our mechanical system that taking items
from the inventory and putting them into the special pipeline and they are moved out to the delivery bin. The opearation of this mechanical
systems 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; robot takes the selected items into the pipeline which is
how the usual vending machine works).
3.6 Strategy: Focused high cost strategy
Our competitive scope would be narrow market as we are focusing on small convenience stores like Star convenience store, 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 Star convenience store. 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
The most important value chain activity for this business is Service after the sale and Technology development

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To add value, all of the components in the Porters value chain model are important but the most important components for our product is
service after the sale and technology development. Machine does not only bring convenience but also major problems; machine fault and it
has various causes which is from design error, installation error to operating error(Wikipedia Faults detection and isolation
http://en.wikipedia.org/wiki/Fault_detection_and_isolation), and this will lead to unwanted downtime and high maintaineous
cost(International journal of rotating machinery http://www.hindawi.com/journals/ijrm/2008/583982/) therefore in many industries people
do not want to run business in full of machinised environment. Since our product will make stores mechnaised, there would possibilities of
occurance of mechanical faults at all times and it will be in the result of fatal loss to our customer as they would not be able to make any profit
during late night after that machine is broken down, and which does not commensurate to our vision; support the world with our innovation.
Hence periodical machine check out will reduce the possibility of breaking down so that it will satisfy our customer.
Also, since this product is run by computerised hardware and also software, the constant development on the software is required as to sort
out the ultimate feedbacks such as development of interface. Hence technology development is an important component to add value.
3.8 Business Processes
3.8.1. PRODUCT ORDER PROCESS Customer make an order of machine and receive a payment and delivery the product.


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REPLACE WITH BUSINESS PROCESS 1 MODEL


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3.8.2. PRODUCT MAINTENANCE PROCESS After install the product keep up the maintenance with regular visit-check-up so that we minimise
the occurance of machine error and faults. This process consists of regular visit-check-up and emergency visit.
REPLACE WITH BUSINESS PROCESS 2 MODEL

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3.9 Functionalities
3.9.1. MACHINERY ORDER PROCESS
Create and send a purchase order
Check if the machineries received matches order
3.9.2. MAINTENANCE PROCESS
Update database for new types of goods
Check for mechanical errors
3.10 Systems

3.10. 1. EMEGENCY VISI T SYSTEM- If the machine breaks down during late night it will make a big loss to our custmer so that we always hold a
mechanic every night for an emergency visit
3.10. 2. REGULAR VI SI T SYSTEM To reduce the disadvantage of machinised product; unwanted fault and error we have a system of regular visit
and check up whether there is a fault on the product
3.10. 3. INSTALLATI ON SYSTEM As our product has a computerised machinary parts and need a large work load of set up; installing a pipeline
connected from the inventory to the vending machine, installing a robot which putting the selected item from the inventory into the pipeline
and installing the vending machine, a careful delivery and a careful installation is required.
3.10. 4. PURCHASE ORDER SYSTEM To let custmers easily follow up the purchase order steps we have a simplified ordering process; which only
has 5steps

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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)

After
service
1. Purchase
product
- Create and send a purchase order
- Check if the machineries received
matches order
Purchase order system

Installation system
Transaction processing
system

Enterprise Resource
Planning system
2. Maintain
product
- Update database for new types of
goods
- Check for mechanical errors

Emergency visit system

Regular visit system
Customer relationship
management system

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CONCLUSION
To improve the effiency in the supmermarket industry we will work as their hand and foot
so we can support their productivity with our innovatively developed product; a large
vending machine. We will provide them a good quality product and also constant after
service.
REFERENCES

1. (Wikipedia Faults detection and isolation
http://en.wikipedia.org/wiki/Fault_detection_and_isolation
2. (International journal of rotating machinery
http://www.hindawi.com/journals/ijrm/2008/583982/)