INFOSYS.

110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Jack Gedye
NetID jged330
Group Number: 450
Website Link: http://infosys110group450.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Helen Cheng Tuesday 3pm
Time Spent on
Assignment:
8 hours
Word
Count:
1447


Introduction

As governments and environmental groups around the world become more and more concerned
with global warming and extensive pollution of our land, air and water, there is an ever increasing
pressure on companies, big and small, to reduce their emissions and do their part to help protect
and preserve our natural resources and environments (United States EPA, 2012)

Our solution to this issue is simply an extensive online database, capable of connecting suppliers
with customers, and customers with consumers. The database will essentially be an online
warehouse where suppliers can sell environmentally friendly products to a wide range of
customers, at a discounted cost. Customers will be able to browse for the product they want to
purchase whilst taking into account the provided information on the emissions it takes to produce.

The database may require government support for suppliers who are making an effort to produce
low emission products at a discounted price for their customers, perhaps in the form of tax cuts or
tax breaks for participating companies. The database will also allow consumers to access
information on who the most environmentally conscious companies are so they can do their part
and avoid companies that are making no effort to reduce their emissions

Vision Statement

To make being green that big bit easier

Industry Analysis

The industry in which our company will operate is the Online Retail Industry, where
manufacturers (suppliers) are able to sell to other manufacturers or customers (buyers).

Entry Barriers (Threat of New Entrants): The threat of new entrants in the Online Retail Industry is
high due to the low start up costs involved (Datamonitor, 2011). Creating a website to host online
sales is very low cost (low capital requirements) and almost anyone is able to do it.

Supplier Power: Supplier power is generally low in the online retail industry due to the sheer
number of available suppliers willing to produce the same product at the same or different
specification. The higher the volume demanded by the buyer, the higher the supplier power due
to switching costs and supplier reputation.

Buyer Power: Buyer power is also very high since suppliers must compete with many rivals for
business. Buyers therefore have the ability to demand low prices and certain specifications,
(although this may be dependant on size of buyer).

Rivalry: Rivalry amongst competitors is high due to the large number of buyers and suppliers all
competing for the same manufacturers and customers. Reputation plays a big part in being able
to successfully compete in the market.

Threat of Substitute Products: The threat of substitutes in the online retail industry are high since
you can buy almost anything you wanted to buy online in a physical store. Generally, the
attractiveness of buying online comes down to convenience and/ or price.

Overall the online industry is an unattractive industry to get involved with. The entry barriers are
low, supplier power is low, buyer power is very high, rivalry amongst competitors is high and the
threat of substitute products is high. To be successful in this industry you must have a
competitive business model and a good reputation.


Potential Customers

Our customers can be divided into manufacturers and customers and consumers. Manufacturers
use our website to list their products which exposes them to a wider range of buyers and buyers
that are committed to buying any volume of eco friendly products. Manufacturers can also get tax
cuts from governments when they sell a certain number of green products through the site, giving
them incentive to do so (thinkbynumbers.org, 2013). Customers, who may be other
manufacturers, can use our website to buy products from manufacturers based on their eco
friendly ratings that are clearly displayed with each product.

Commercial customers will also receive a tax cut/ break from governments when they reach a
certain proportion of eco friendly products used in the production of their goods. General public
consumers can use our website, either to buy products from manufacturers, or view company
ratings for the number of green products they buy from the website (the more green products a
company buys, the higher their rating). This will allow companies that are making an effort to
become more eco friendly to get the credit and recognition they deserve.

The Product

Our website aims to satisfy the needs of all parties involved so we are able to make the
manufacturing industry a lesser global pollutant as it is currently. Manufacturers have the ability to
promote their environmentally friendly products to a larger audience than before, and also have
the opportunity to receive tax break from the government, reducing their costs. Customers are
able to boost their reputation of being a green company by increasing their eco-rating on the
website the more products they purchase through the website. Consumers become better
informed as to which companies are making an effort to be environmentally friendly and can
therefore make the decision whether or not to buy from certain companies.

Potential Suppliers and Partners

The first suppliers to our company will be manufacturing companies that produce parts or
components used by other manufacturers in their products to sell on our website.

The second supplier to our company will be the website hosting company that provides and
maintains our website.

The first partner of our company will be international governments, these will provide the tax
break incentives for our supplier companies to list their products with us on our website.

The second partner of our company will be the payments hosting company that facilitates
payments on the website from manufacturer to buyer.

Porters Generic Strategy

In relation to Porters Generic Strategies, our company will be adopting a low cost broad market
strategy. We will be servicing all sectors of the manufacturing industry whilst striving to be as low
cost as possible to persuade more companies to buy using our website and buy more eco-
friendly products.

Porters Value Chain Activity

The most important value chain activity in this business is the primary activity of operations. This
is because the most important thing the company will do will provide a connection between the
suppliers and customers of our business and the operation of payment and goods movement is
vital to the businesss success.
Business Processes

Customer Purchase Process:

The customer purchase process is the process through with customers purchase products from
suppliers using our website. The process provides the link between our customers and suppliers
and allows ease of trade using our business.





























Start
Customer Order

Customer Purchase
Order Created
Purchase Order sent to
Supplier
Order filled by
supplier
Invoice Sent
Invoice Received
Payment Received
End






Payment Transaction Process:

The payment transaction process is the process through with customers pay suppliers for
purchased goods. It is the link between our company, the suppliers, the customers and the
payment facilitator/ merchant.







































Functionalities

Functionalities for BP One: Suppliers receiving orders from customers. Customers receiving
goods from suppliers.

Start
Customer order created,
sent to supplier and
filled

Invoice sent to
customer
Invoice received by
customer
Payment goes
through merchant
Commission received
via merchant
Payment received by
supplier
End
Functionalities for BP Two: Payments being received by suppliers from customers. Commission
being removed from payment to supplier.




Systems

Transaction Processing System (TPS): The TPS collects and processes transaction information
so that suppliers and the company receive payments for their goods and services. The
transaction processing system is a vital system for the successful operation of the business.

Decision Support System (DSS): The DSS collects information about transactions, customers
and suppliers and consolidates data, transferring it into information. This information is used be
management to make business decisions.

Content Management System (CMS): The CMS provides the tools to manage the creation,
editing, storage and publication of information. This allows information about the eco friendly
nature of products on our site to be displayed effectively and efficiently.

Summary Table

Value Chain
Activity
Processes Functionalities Specific
Information
Systems
Broad
information
Systems
Operations Customer
Purchase
Process
1) Suppliers
receiving orders
2) Customer
receiving goods
Content
Management
System.
Transaction
Processing
System.
Payment
Transaction
Process
1) Payment being
received by
supplier
2) Commission
being removed
from payment
Transaction
Processing
System.

Decision
Support
System.


Conclusion

In conclusion, our business will strive to reduce global pollution caused by the manufacturing
industry. It will do this by collaborating with governments, large and small-scale manufacturers
and the buyers of these products. The business will use information systems to manage the
operations of the business and allow consumers to view vital statistics about the eco friendly
nature of a particular company. Through this, we hope to make mass global pollution a thing of
the past.



Referencing

Economic Incentives. 2013 United States Environmental Protection Agency. Retrieved from
http://yosemite.epa.gov/EE%5Cepa%5Ceed.nsf/webpages/EconomicIncentives.html

Industry Profile. 2011 Data Monitor. Retrieved from http://www.buy4now.com/Images/DM-Online-
Retail.pdf

Pollution Prevention. 2012. United States Environmental Protection Agency. Retrieved from
http://www.epa.gov/compliance/incentives/pollution/