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INFOSYS.110 BUSINESS SYSTEMS: DELIVERABLE 2: BUSINESS SECTION SUMMER 2014 Name NetID Group Number: Website Link: Tutorial Details Time Spent on Assignment: Rita Saseve rsas002 Group 32
http://infosysgroup32pmrs.blogspot.co.nz/

Tutor: Yvonne Hong 24hours

Day: Tuesday, Friday

Time: 3pm

Word Count: 1842

SAFER ROAD CYCLING GEAR

INTRODUCTION

Bicycle and car collisions very rarely result in minor or no injuries to the cyclist. Man y of these accidents are tragic (DeKeyser, 2013). Therefore, Innovative Technology combined with Entrepreneurship is crucial in addressing the causes of accidents involving cyclists in New Zealands (NZ) current unsafe road cycling environment. This report will discuss the Porter five forces analysis for industry analysis and business strategy development, while focussing on the typical customer and fulfilling their respective needs through Porters focused strategy and value chain activities (Porter, 1979). Additionally, this report will analyse how the key business processes and functionalities combined with relevants systems will reinforce our company Safer Road Cycling Gears vision for road cyclists to see and be seen. By incorporating relevant examples and sources, this report will demonstrate an in-depth understanding of the current NZ road safety equipment industry to establish Safer Road Cycling Gears position on entering the market with its Cyclist 3D object scanner.
3. BUSINESS SECTION 3.1 Vision

Safer Road Cycling Gears responsibility to road cyclists is to see and be seen, creating a safer tomorrow than today. Our vision is put that into action through leading technology to make New Zealand road users aware of cyclists national wide with a commitment to an unlimited vision.
3.2 Industry Analysis: Road Safety Equipment Industry

Industry: Road Safety Equipment Industry.

Force:

High/Low:

Justification:

Buyer power:

Low

Buyers

do

not

have

many

options

and

alternatives in this industry. In fact, it appears to

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be quite limited as there is only safety high visibility clothing and protective head and body wear at present. Every year at bike shows, major corporations, smaller companies, and private individuals promote hundreds of new itemsthe majority of new products disappear quickly due to insufficient capital for marketing and

production

(Burke, 2003). Therefore, buyers

choices are few in this industry which is advantageous for the launch of the Cyclist 3D object scanner since it has the potential to retain buyers for a longer time due to a lack of alternative options.

Supplier power:

High

Due to the recent and rapid developments of technology, the industry has many suppliers to source materials and services from. However, it has found to be at a high cost structured by the supplier. 3D scanning technology evolved in the last few years, but unfortunately not as fast as expected. One critical problem is still the high cost of high-quality scanning devices. A good scanner, able to produce data at the accuracy requiredoften costs more than 100K US$. (Rocchini, 2001) In hindsight, one can assume that the associated costs would lower

significantly in a short span of time due to the fast pace technology industry.

Threat of new entrants:

High

The current Road Safety Equipment industry gives

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the impression that it will be easy for new entrants to enter the market since there are no legal or industry barriers or policies restricting new entrants in New Zealand. In fact, clothing vendors have the opportunity to steer fashion in a way that looks good but makes us morenot lessconspicuous. I want to look good while riding, but I also want to be safe and minimize some of the inherent dangers while sharing the roads. (DeKeysey, 2013) This reinforces how easily new entrants can enter the industry simply through the production of safer cycling specific clothing.

Threat of substitutes:

High

The alternatives for this industry are safety high visibility clothing and protective head and body wear which are readily available in many retail stores, online stores and sporting retailers. The U.S sporting retail industry is facing challenges with excess inventory. Its really an uncontrolled marketplace out there, and that puts the dealer on the hot seat, big time. And that affects the wholesale side too. Theres a lot of inventory in the pipes with no place to go, and its tough to make that stuff disappear. (Frothingham, S. (2013). This equipment is all aimed at fulfilling the same purpose to make road cycling a safer environment therefore also a substitute..

Rivalry among existing Low

At this time, there is no sound competitor who is

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competitors:

offering a similar product in this industry. Therefore, from Safer Road Cycling Gears perspective, it has a first mover advantage with the ability to focus on product differentiation. This is advantageous to establishing a pivotal position to market itself in the industry. Moreover, the intent to influence demand with unique differences such as a continuous laser proximity sensor which signals and alarms drivers will attract consumers interested in better road saftey equipment. (Baltzan, Phillips, 2008).

Overall attractiveness of the industry: After applying the Porters Five Forces analysis to the current Road Safety Equipment Industry, there is a cross between a high and low outcome for each force. However, it is still sustainable and attractive to enter the industry due to a viable position the Cyclist 3D object scanner will have in terms of a competitive edge. Moreover, there is currently nothing comparable in this industry hence this is a huge advantage.
3.3 Customers and Their Needs

Increased visibility and awareness of cyclists will reduce the number of accidents involving cyclists on New Zealand roads. During the period 2008 2012 an average of 121 cyclists were seriously injured and nine cyclists were killed each year in crashes involving a car (http://www.nzta.govt.nz/about/advertising/other-advertising/share-the-road.html). So, it would be safe to assume that all road cyclists would be interested in the Cyclist 3D object scanner. Research has also been carried out to show that by increasing the use of visibility aids may improve the ability of drivers to recognise cyclists, as well as pedestrians. (Kwan & Mapstone, 2004). The Cyclist 3D object scanner also features a sounding device which goes a step further when combined with the visibility feature, so it will have an enhanced effect for road cyclists safety.
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3.4 The Product and Service

The Cyclist 3D object scanner is a small portable device attached to the front, back and side of the cyclists bike. A continuous laser proximity is able to pinpoint the exact location of any vehicle within a 1.5meter radius range. The proximity sensor looks for changes in the signal as the cyclist is constantly moving, enabling easy and fast detection of vehicles within the relevant range. The driver of the vehicle will initally be alerted by bright red flashing lasers before being alarmed by the sounding sensor which is only triggered when the driver is too close and within a 1meter radius. Additionally, it will have a progressive sound and frequency until the driver moves away to give the cyclist an area of 1.5meters. Not only will the smart Cyclist 3D object scanner ensure that the cyclist is visible but also alerts surrounding vehicles once they are too close.
3.5 Suppliers and Partners

Supplier: Our company will source and purchase raw materials such as 3D laser scanners from several suppliers prior to manufacturing the product inhouse. Partner: In order to promote sales, we will partner with retail cyclist stores to negotiate bulk buying agreements. They will benefit with discounted bulk prices while we benefit with positioning our products by the checkout counters for product awareness, in hope of increased sales. Partner: We will also partner with the Safer New Zealand Road Campaigning business for advertising purposes and in exchange we will offer promotional products that they can utitlise in promotional competitions.
3.6 Strategy: Focused High Cost Strategy

Once Safer Road Cycling Gear enters the market, it will focus on developing core competencies that will act as an entry barrier so competitors will find it difficult to imitate while consumers experience valuable benefits from the Cyclist 3D object scanner. Due to the niche market it will also focus on a high cost strategy to satisfy demand for a premium product. In saying that, larger buyers will have little power to negotiate prices since there
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will not be an alternative. Furthermore, by concentrating on the differentiation-focused aspect, it will bypass the supplier price increases. Moreover, the specialised functionalities of the Cyclist 3D object scanner and core competencies will eliminate prospective substitutes. Consequently, limiting rivals from being able to meet our differentiationfocused customer needs hence following Porters generic focused high cost strategy. The overall strategy is therefore Porters Focused High Cost Strategy.
3.7 Value Chain Activity: Marketing and Sales

The most important value chain activity for this business is Marketing and Sales. The importance of marketing and sales is vital in promoting our companys vision to see and be seen. Furthermore, we will maintain a focused high cost strategy in order to achieve a competitive advantage by targeting a narrow customer scope. Therefore the activity to promote, price and sell products to customers is invaluable to our business model.
3.8 Business Processes
3.8.1. MARKETING CAMPAIGN M ANAGEMENT PROCESS By managing the marketing

campaigns, our company can manage the customer relationship process through having relevant information readily available to sell our product. In addition, ensuring customer demands are still met while ensuring minimum turnaround time. At the same time, the marketing campaign management process will improve efficiency.

MARKETING CAMPAIGN MANAGEMENT PROCESS MODEL

Marketing Campaign Initiation

Marketing Campaign Management Process

Customer Information Stored

Improved Efficiency through minimum

3.8.2. SALES ORDER PROCESS

By managing the sales order process, our company can also

manage the supply of products in the warehouse. This is valuable as it has a domino effect on the manufacturing process who need to have sufficient supply according to sales and customer demand. Streamlining improves business process efficiencies by simplifying the sales order process across departments.

SALES ORDER PROCESS MODEL

Customer Orders Product

Create and send purchase order to warehouse

Update Inventory

Warehouse cross-checks supply

End Process

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3.9 Functionalities
3.9.1. MAREKETING CAMPAIGN MANAGEMENT PROCESS

Store accurate customer information. Monitor customer demand.

3.9.2. SALES ORDER PROCESS

3.10 Systems

Manage supply of inventory. Accurate inventory system linked to the warehouse.

3.10.1. SALES ORDER PROCESSING SYSTEM

The business is focussed on making sales to

essentially make a profit. This in turn requires the right information to be readily available to meet the customers demand and fulfilling their order. This improves customer satisfaction and generates growth and market share in the industry.
3.10.2. INVENTORY MANAGEMENT SYSTEM

Inventory needs to be managed accurately to

avoid additional costs to store excess inventory. By ensuring they are meeting the customer demand with a match in supply will reduce costs and improve productivity and customer satisfaction therefore adding more value.
3.10.3. CUSTOMER RELATIONSHIP MANAGEMENT SYSTEM

Customer loyalty and customer

satisfaction is vital to customer retention so the management of customers personal information and past order information allows a more personalised service which adds to the customer experience and improves retention.

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3.11. Summary Table: Value Chain to Systems

Value Chain Activity

Processes 1. Marketing Management Campaign process 2. Sales Order process

Functionalities 1. Store accurate customer information. 2. Monitor customer demand.

Marketing and Sales

Specific Information System(s) Customer Relationship Management system Camaigning Process system Sales Order Processing system

Broad Information System(s) Customer Relationship Management System Enterprise Resource Planning cheese system Transaction processing cheese system Supply Chain Management system

1. Manage supply of inventory. 2. Accurate inventory system linked to the warehouse.

Inventory Management system

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CONCLUSION

Therefore, it has been shown that Safer Road Cycling Gears vision for road cyclists to see and be seen can be implemented by the Cyclist 3D object scanner. However, this is also only viable due to invaluable business processes and functionalities fused by relevant support systems. Additionally, this entire process requires a unique combination of Innovative Technology with Entrepreneurship. Consequently, resulting in reducing associated accidents nation wide whilst addressing the problem of accidents involving cyclists in New Zealand.
REFERENCES

1. Baltzan, P., & Phillips, A. (2008). Business Driven Information Systems. McGrawHill/Irwin. 2. Burke, E. (Ed.). (2003) High-tech cycling. Human Kinetics, 2003. 3. DeKeyser, D. (2013). For safetys sake, lets brighten up apparel. Bicycle Retailer & Industry News, 22(11),46. 4. Frothingham, S. (2013). Inventory glut is a blessing and a curse for dealers. (cover story). Bicycle Retailer & Industry News 22. No. 12: 1-13. Business Source Premiere. EDSCOhost (accessed February 6. 2014). 5. Kwan, I., & Mapstone, J. (2004). Visibility aids of pedestrians and cyclists: a systematic review of radomised controlled trials. Accident Analysis & Prevention, 36(3), 305-312. 6. Porter, M. E. (2008). The five competitive forces that shape strtegy. If you read nothing else on strategy, read these best-selling articles., 25. 7. Rocchini, C. C., Cignoni, P. P., Montani, C. C., Pingi, P.P., & Scopigno, R. R. (2001). A low cost 3D scanner based on structured light. Computer Graphics Forum, 20(3). 8. Share the Road. (22 January 2014). New Zealand Transport Agency. Retrieved from http://www.nzta.govt.nz/about/advertising/other-advertising/share-the-road.html

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