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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Rebecca Cheng
NetID rche607
Group Number: 401
Website Link: http://infosys1102014s1group401.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Olivia Thursday 9am
Time Spent on
Assignment:
8 hours Word Count: 1605

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DELIVERABLE 2
INTRODUCTION
Drink driving is a serious problem that affects not only the driver themselves, but the road
users around them. Although police checks may remove the drink drivers off the roadand
prevent them from causing any accidents, they do not have the ability to ensure that
everyone driving is below the legal alcohol limit. In 2012, the New Zealand police recorded
26,761 people under the influence of alcohol whilst driving (Ministry of Transport, 2012),
this amount does not include the large amount of drink drivers who manage to avoid being
detected by the police. Blood alcohol measurement devices in the form of finger prickers
installed in cars would significantly address this problem. If these devices were made
compulsory to install on all cars in collaboration with the govnernment, this would
significantly reduce the amount of people who drive on the roads under the influence of
alcohol. The device detects the alcohol amount within the blood and if the alcohol content
is over the legal amount, the car will not start, therefore preventing the driver from driving
while intoxicated.
3. BUSINESS SECTION
3.1 Vision
Providing the safest and the newest technology to ensure a better environment for all road
users worldwide
3.2 Industry Analysis: Blood Alcohol Measurement Car Device Industry

Force: High/Low: Justification:
Buyer power: Low The buyer power would be low because currently
there are no other products existing that offer the
same function. This means that consumers only

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have one product to choose from. The
compulsory aspect of installing this product
would also decrease the buyer power as they
would have no choice but to purchase this
product.
Supplier power: Low The suppliers would not have a lot of power here
due to the low amount of businesses in the
industry. The suppliers would therefore not have
a lot of demand which decreases their power as
only a few businesses would require them as
suppliers.
Threat of new entrants: High The basic technology used for the product already
exists in blood glucose meters, therefore it would
be very for companies to enter the industry as
they would not need to spend a large amount of
capital in conducting their own research and
developing a completely new product. There are
also no barriers with entering the industry and
the low competitiveness would make it more
attractive to new entrants.
Threat of substitutes: High There are currently lots of technology being
developed to test the glucose level of diabetics in
a non-invasive way (Krishnamurthy, 2013), such
as using tears to measure the level of glucose
(Gibbs, 2014). This means that there is a very high
chance of products being developed so that it can
also test the blood alcohol level without needing

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to draw blood.
Rivalry among existing
competitors:
Low Currently in the industry, there are not a lot of
other businesses that offer proudcts which have
the same function. This means that the rivalry
among existing competitors would be extremely
low as there are not any other competitors.
The industry is currently attractive as there are not a lot of competitors, the buyer and
supplier power is low, meaning that the businesses in the industry has a high power overall.
The threat of new entrants and substitute products are unfortunately high, meaning that
there is a risk of the industry becoming less attractive when new companies start entering
the industry and a high risk of consumers choosing another product that offers the same
result. However, currently, the industry is overall attractive.
3.3 Customers and Thei r Needs
The business would be targeting all car drivers as their potential customers. In 2012 alone,
New Zealand was faced with 102 deaths caused by alcohol/drug influence on the drivers
(Ministry of Transport, 2012). This is a clear indication that the needs of the consumers is for
this risk to be lowered. There are already blood alcohol measurement devices available to
the public but none of them can be installed into the car and is as accurate as those that the
police use which are not sold to the public (Wald, 2013). Therefore, this product is an
effective and accurate way of preventing those under the influence of alcohol from being
able to drive. This does not only benefit those who wish to drive under the influence, but
also any other road users that may be affected by the decision of another.
3.4 The Product
The product is a blood alcohol measurement device which is installed into the car. The car
ignition system is linked together with the device so that if the blood alcohol content of the
driver is more than the legal amount, the car will not start, and therefore preventing the
driver from driving on the road. The function of the product would therefore satisfy the

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consumers needs of lowering the risk of driving under the influence of alcohol, which effects
both the driver and other road users.
3.5 Suppliers and Partners
Material Supplier:
This would refer to the supplier that provides the business with certain aspects of the
product that the business does not make themselves, such as the technology material
required to test the alcohol content. This would need to be aquired from a supplier as the
business would not have the capacity to produce all aspects of the product.
Product System Supplier:
In order for the device to work in synch with the ignition of the car, a system would be
needed to facilitate this process. Therefore, this system would need to be provided by a
technological supplier so that the business is able to combine it with the product.
The New Zealand Government:
For the product to achieve its true potential of significantly reducing the amount of drink
drivers, the business will need to work with the government to ensure all cars are installed
with the product. This would make the government a partner to the business as they are
working together to achieve the same outcome.
Car Workshops:
The business would need to work with a few select car workshops with the installation of
the product, as it is very important that the device is installed properly for it to work.
Therefore, the business needs to collaborate with car workshops to ensure that all devices
installed are functioning properly.
3.6 Strategy: Differenti ation
The competitive scope of the product would be classified as a broad market as it is targeted
at all car drivers, which includes a range of different consumers. The cost strategy would be
high due to the fact that advanced technology is required, therefore leading to a high retail

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price. Using Porters Generic strategies, the combination of broad market and high cost
leads to the overall strategy of differentiation.
3.7 Value Chain Activity: Technology Development
The most important value chain activity for this business is Technology Development.
The product is very technologically orietated, creating a high reliance in the value chain
activity of technology development. The vision aims to provide the newest and safest
technology which means that the business would need to ensure that their product is
always up to date with the newest technology. The business would also need to ensure that
their product has the newest technology, in order to be able to charge at a high cost in the
strategy and still retain their consumers interest.
3.8 Business Processes
3.8.1. CUSTOMER FEEDBACK PROCESS In order for the business to continually improve their
product, they would need to gain knowledge on the customers opinion of the product. To
do this, the business would require the customer feedback process to be able to analyse the
feedback and improve the product.


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CUSTOMER FEEDBACK PROCESS MODEL

3.8.2. PRODUCT IMPROVEMENT PROCESS This process is crucial in creating a better product
to satisfy consumers. The process includes the application of the feedback gained from
customers and the newest technology to improve their product and maintain and increase
their consumers.

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PRODUCT IMPROVEMENT PROCESS MODEL



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3.9 Functionalities
3.9.1. CUSTOMER FEEDBACK PROCESS
Contact customers after product has been installed for at least one month
Process data collected from customers into useful information
3.9.2. PRODUCT IMPROVEMENT PROCESS
Research the newest technology available to use on the product
Apply the information gained to design different improvements for the
product
3.10 Systems

3.10. 1. CUSTOMER SERVI CE SYSTEM This system is vital to ensuring that the business
maintains a relationship with the customers during and after the sale of the product. Only
by ensuring that a stable relationship exists can the business gain useful information from
the customers as to how they should improve their products to satisfy more consumers. The
functionalities of the customer feedback process would only be able to operate smoothly if
the CRM system existed.
3.10. 2. DECISION SUPPORT SYSTEM This system refers to the managerial level of the
business. They utilise the information gained from the operational level which would include
the data obtained from the customer feedback process. By processing this data, they are
able to create an improved and better product as their output which supports the vision of
providing the newest and safest technology.
3.10. 3. DATA PROCESS SYSTEM This system supports operational level in processing the
data collected form the customer feedback into information that the managerial level can
then use. This support that the system provides assists the business as a whole to move
towards always developing their products so that the newest and safest technology is used
in a way that the consumers are satisfied.

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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)

Technology
Development
1. Customer
Feedback
process
1. Contact customers after product has been
installed for at least one month

2. Process data collected from customers into
useful information
Customer service system


Data process system
Customer relation
managemanet system

Decision support system
2. Product
Improvement
process
1. Research the newest technology to use on
the product

2. Apply the information gained to design
different improvements for the product
Technology research system


Product design system
Transaction processing
system

Decision support system

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CONCLUSION
This product which measures the blood alcohol content of people before they drive is a
more efficient way of preventing those under the influcence of alcohol from using the road.
This would also save the police the resource required to conduct police checks as the
amount of drivers driving after drinking would be reduced significantly. For the business to
be successful, they must understand the information systems used within the organisation
such as decision support systems to be able to utilise it to their advantage. Information
systems are also valuable in improving productivity, improving customer satisfaction and
creating compeitive advantages, all of which would assist the business in becoming
successful.

REFERENCES

1. Gibbs, S. (2014, January 17). Sweet solution? Google tests smart contact lens for
diabetics. The Guardian. Retrieved May 15, 2014, from
http://www.theguardian.com/technology/2014/jan/17/google-tests-smart-contact-
lens-diabetics

2. Krishnamurthy, G. (2013, October 15). Non-Invasive Measurement of Blood Glucose
Levels Using GlucoTrack: Interview with CEO Avner Gal.MedGadget. Retrieved May
15, 2014, from http://www.medgadget.com/2013/10/non-invasive-measurement-
of-blood-glucose-levels-using-glucotrack-interview.html

3. Ministry of Transport. (2012). Alcohol and Drugs Crash Facts 2013. Retrieved from:
http://www.transport.govt.nz/assets/Uploads/Research/Documents/alcohol-drugs-
crashfacts-2013.pdf

4. Ministry of Transport. (2012). Breath and Blood Alcohol Statistics. Retrived from:
http://www.alcohol.org.nz/research-resources/nz-statistics/road-traffic-crashes-
and-deaths

5. Wald, M. (2013, July 3). Blood Alcohol Testers for Those Without Badges. The New
York Times. Retrieved May 15, 2014, from
http://www.nytimes.com/2013/07/04/technology/personaltech/mobile-devices-let-
drinkers-and-others-measure-blood-alcohol.html?_r=0




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