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The document describes a proposed fingerprint transaction system as an alternative to credit cards. It aims to eliminate credit card fraud by providing a secure way for customers to pay using their unique fingerprint. The system would benefit banks, retailers and customers by increasing security and convenience when processing financial transactions. Detailed sections analyze the industry, target customers, product features, partners, strategy, business processes and required systems to support the fingerprint transaction concept.
The document describes a proposed fingerprint transaction system as an alternative to credit cards. It aims to eliminate credit card fraud by providing a secure way for customers to pay using their unique fingerprint. The system would benefit banks, retailers and customers by increasing security and convenience when processing financial transactions. Detailed sections analyze the industry, target customers, product features, partners, strategy, business processes and required systems to support the fingerprint transaction concept.
The document describes a proposed fingerprint transaction system as an alternative to credit cards. It aims to eliminate credit card fraud by providing a secure way for customers to pay using their unique fingerprint. The system would benefit banks, retailers and customers by increasing security and convenience when processing financial transactions. Detailed sections analyze the industry, target customers, product features, partners, strategy, business processes and required systems to support the fingerprint transaction concept.
Name Samuel R Thompson NetID stho976 Group Number: 362 Website Link: http://infosystems1102014fsgroup362.blogspot.co.nz/2014/04/blog- post.html Tutorial Details Tutor: Day: Time: Mira Lee Friday 11am Time Spent on Assignment: 21 hours Word Count: 1577
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2 FINGERPRINT TRANSACTION SYSTEM INTRODUCTION Have you ever enjoyed a meal at a restaurent, paid with your credit card, and then left your copy of the receipt? Using this supposedly insignificant piece of paper, fraudsters have the ability to make substantial purchases using your credit card number.[1. How Stuff Works 2013] Credit card fraud has so far amounted to over $55B worldwide and that number is growing everyday.[2. Statistics Brain] Our solution eliminates the need for credit cards altogether. Using a fingerprint transaction system would provide a convenient and safe way to shop without the risks related to typical payment cards. 3. BUSINESS SECTION 3.1 Vision To defeat credit card fraud worldwide by providing the public with the safest and most convenient way to shop. 3.2 Industry Analysis: Financial Transaction Processing Industry Industry: Financial Transaction Processing Industry. Companies within this industry offer services including electronic funds transfer and card processing. Force: High/Low: Justification: Buyer power: High Within this industry there are many companies that sell various point of sale (POS) terminals and systems for the buyer to choose from. However, while switching costs are low, companies in the industry attempt to mitigate buyer power through contractual agreements.
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3 Supplier power: Low The raw materials used in this industry are not difficult to obtain and many manufacturers are able to produce the equipment required. Threat of new entrants: Low The technology behind the tangible product can easily be manufactured. However, the high switching costs of existing companies will make it very difficult for any new entrant to attract customers once in the market. Threat of substitutes: Low In this day and age where 89% of adults in the Western world have a personal bank account there is no adequate substitute for a financial transaction processing system.[3. Economist] Rivalry among existing competitors: High There is considerably high competition between companies already established in the industry. The top 50 companies worldwide account for approximately 85% of industry revenue. [4. Hoovers] Overall attractiveness of the industry: Overall, the financial transaction processing industry is an attractive industry to pursue if a new entrant is able to gain traction once in the market. A small startup could achieve this by providing a unique and specilized service; such as a fingerprint transacation system. 3.3 Customers and Thei r Needs The target group of customers for for a fingerprint transaction system would be any person or organisation that currently relies on a transaction system to conduct personal or commercial financial transfers. For example, banks, retailers, and the general public. Research shows that 40% of all financial fraud is related to credit cards and that 10% of
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4 Americans have been victims of credit card fraud. [5. Statistics Brain] This clearly identifies the need for a more secure transaction system. 3.4 The Product and Service A fingerprint transaction system would effectively provide security to customers by eliminating the need for tangible payment as well as providing a payment method 100% unique to the customer. Financial institutions would benefit from this system as they would no longer be required to pay out to their customers who have been victims of credit card fraud. Retail stores would benefit as the system would create a more user-friendly experience for their customers. And the general public would benefit by having a higher sense of security (piece of mind) as well as ultimate convenience. Our product would be advantageous to every party involved in the transfer of funds. 3.5 Suppliers and Partners Supplier 1: Equipment manufacturer- the procurement of raw materials and the manufacture of the tangible component (POS terminal) of the fingerprint transaction system must be sourced elsewhere. Supplier 2: Delivery supplier- the tangible component (POS terminal) must be shipped from the manufacturing facility and delivered to banks and retailers around the world. Partner 1: Financial Institutions (banks)- Banks are an essential partner to work with as they provide the database of customer accounts. Banks would benefit from a fingerprint transaction system by providing an innovative and more secure system to their customers. This would ultimately save banks money through having to pay less to customers who have been victims of credit card fraud. Partner 2: The New Zealand government- the NZ government may be interested in investing in the initial startup of fingerprint transaction technology. This is because government resources and time are spent on trying to fight credit card fraud everyday. After hearing about our new technology they would likely be eager to join our mission to help end credit card fraud once and for all.
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3.6 Strategy: Differentiation FTS is superior to rival products and offers banks, retail stores, and the general public a premium service. The technology used to create the system is modern and more advance than current transaction systems and would more than likely cost more to produce. Therefore FTS has a high cost strategy. FTS would target all retail stores, all financial institutions, and every person in the world who currently rely on credit cards and POS terminals. In the United States alone there are over 28 Billion transactions made per day across 10 Billion POS terminals. [6. Gaoresearch] As our product is expected to be utilized worldwide it clearly has a broad market. The overall strategy is therefore: Differentiation 3.7 Value Chain Activity: Firm Infrastructure The most important value chain activity for this business is: Firm Infrastructure To achieve our vision of providing the most secure transaction system ever made and ultimately defeating credit card fraud worldwide, a firm infrastrucutre is fundamental. The need to ensure financial security is the most important aspect of our system as we are promoting a virtually flawless design and any security breach may cause the technology to lose its integrity. This could result in customers reverting back to standard financial transaction systems. In order to prevent this, an effective quality control process in collaboration with capable management and finance teams is a significant requirement. 3.8 Business Processes 3.8.1. SALES PROCESS A simplistic and security conscious sales process through the use of a fingerprint transaction system is essential in providing shoppers, merchants and banks with the most secure and user-friendly experience possible.
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6 SALES PROCESS
FINGERPRINT TRANSACTION SYSTEM
FINANCE DEPARTMENT
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7 3.8.2. FAULT REPAIR PROCESS While the services that fingerprint transaction systems provide are expected to be exceptionally safe and secure there is always the possibility of a fault occurring. In preparation of any unforeseen flaws in the system it is important to have a capable fault repair process ready for action. It is of the utmost importance that a fault be dealt with quickly and efficiently, if not customers could easily lose faith and switch to another financial transaction system. FAULT REPAIR PROCESS
QUALITY CONTROL FAULT MONITORING SYSTEM
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8 3.9 Functionalities 3.9.1. SALES PROCESS Scanning fingerprints Transferring funds 3.9.2. FAULT REPAIR PROCESS Diagnosing fault Repairing fault 3.10 Systems
3.10. 1. FINGERPRINT I DENTI FI CATI ON SYSTEM The fingerprint identification system is the primary factor involved in the success our product. The system is required to effectively scan and register consumer fingerprints and then precisely identify the print to the unique user. The system must be 100% accurate so as to ensure the safest and most convenient way a consumer can shop. 3.10. 2. FINANCI AL TRANSACTI ON SYSTEM- This system swiftly transfers funds from the users personal bank account to the merchants business account. The financial transaction system works systematically with the fingerprint identification system to guarentee security. Speed of the transaction process is essential here to provide overall user-friendliness and convenience. 3.10. 3. FAULT RECOVERY SYSTEM- In order to safeguard against any security breaches a fault recovery system is necessary. This system would have the ability to use information taken from the fault monitoring system to repair any discovered bugs and viruses in the software as well as repair any issues reported by customers. This is essentially a safety measure or back up plan should an unexpected problem arise to further increase overall security.
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9 3.11. Summary Table: Value Chain to Systems
Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s)
Firm Infrastructure 1. Sales Process 1. Scanning Fingerprints
2. Identifying Fingerprints Fingerprint Identification System Financial Transaction System Transaction Processing System Transaction Processing System 2. Fault Repair Process 1. Diagnosing Fault
2. Repairing Fault Fault Monitoring System
Fault Recovery System Transaction processing system Decision Support System
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10 CONCLUSION To conclude, the need for a more secure transaction system is imperitive. Far to much time, energy, and money is being wasted on fighting financial fraud. Replacing traditional transaction systems with fingerprint transaction systems would effectively solve the problem and create a financially safer world. Eliminating the need for any sort of physical payment device through the use of IS/IT would provide the general public, privately owned businesses, large retail chains, and large financial institutions around the world with complete security and convenience. Fingerprint transaction systems are the way of the future. REFERENCES
1. Lee Ann Obringer (2013). How Identity Theft Works. http://money.howstuffworks.com/identity-theft1.htm
3. Economist.com, (2012). Banking in the Devloping World: The Poor are Different. http://www.economist.com/blogs/feastandfamine/2012/04/banking-developing- world
4. Hoovers (2014). Financial Transaction Processing Industry Overview. http://www.hoovers.com/industry-facts.financial-transaction-processing.1346.html