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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Freddie Gillies
NetID Fgil292
Group Number: 253
Website Link: http://infosys110groupxxx.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Kirsten Thursday 9am
Time Spent on
Assignment:
18 hours Word Count: 1621

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THE COMMUTER-PRO: ADDRESSSING
AUCKLANDS TRAFFIC WOES
INTRODUCTION
Auckland City represents the central hub of New Zealand enterprise and, as a result, has
experienced significant population increases. With this increase in population has come an
increase in congestion on Auckalnds roads. Commuters now spend an average of 47 mins
out of every hour travelled stuck in traffic (NZ Herald 1). The Commuter-Pro is a
GPS+Cadence Guided Cyclo-Computer that will be supplied to local councils and sold on to
citizens. It will reduce congestion on Auckllands roads by incentivising a transport
alternative: Cycling. The Commuter-Pro sends information regarding speed, pedal cadence
and GPS location to a Council Database, controlled by the Commuter-Pro Systems. Users are
provided with a profile which displays routes travelled, petrol saved and time saved. The
Commuter-Pro, in conjunction with local Councils, will provide subsidised rates (for
ratepayers) based on distance travelled and other discounts and incentives for others.
3. BUSINESS SECTION
3.1 Vision
To create and develop products of change that not only improve our environment, society
and cities, but humanity as a conscious consumer.
3.2 Industry Analysis: Public Cycle Industry
Industry: Public Cycle Industry. The Commuter-Pro offers a new alternative method of
incentivising a form of congestion reducing transport. While the product is new, it is evident
that there are market forces at work.
Force: High/Low: Justification:

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Buyer power: HIGH Despite the advantages presented by changing
consumer attitude and encouraging cycling as an
alternative transport option, the New Zealand
Government outlined Buses, Ferries, Trains and
Cable Cars as significant areas of investment
potential (NZTA., 2014). This means our main
target consumer has a variety of potential options
for investment.
Supplier power: LOW The cyclo-computer industry is an industry rife
with competition. Cateye represented one of the
significant leaders in the industry (DGAP
Corporate News). The explosion in cyclo-
computer demand has led to fierce competition
which would mean a number of potential
suppliers would exist for the outsourcing of the
production of the Commuter-Pro (DGAP
Corporate News).
Threat of new entrants: LOW It is unlikely that two similar systems would exist
side by side as the government and or local
councils would be inclined to run one system. Any
competitive advantage, however, can be
diminished and any industry with profit presents
the opportunity for new entrants so we must
maintain the highest level of innovation and price
competition to maintain control over the market.
Threat of substitutes: HIGH Auckland City offers Nextbike, a company
dedicated to the hiring of public bikes(Nextbike

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Site). Although this doesnt incentivise cycling or
offer the same online data processing and
connectivity, it can be seen as a competitive
substitute. The New Zealand government has also
pledged massive investment in alternatives
(Buses, Rail, Cable-Car and Ferries) which could
shift government focus away from cycling as an
alternative transport option.
Rivalry among existing
competitors:
LOW The only real competition to the Commuter-Pro
within the public Cycle industry is public bike hire,
for example Nextbike. This presents very little
competitive threat to the Commuter-Pro as there
is a large degree of product and policy
differentiation. The Commuter-Pro represents an
unexplored product and concept and therfore it is
difficult to quantify and gauge existing
competition.
Overall attractiveness of the industry: The public cycling industry presents many
opportunities. The current trend towards environmentalism coupled with growing
congestion in cities offer lucrative opportunities for businesses that can tap this niche. While
significant alternatives exist, the Commuter-Pros positioning and innovation offers great
opportunities for governments and councils to encourage cycling and therefore has the
potential to achieve great success.
3.3 Customers and Thei r Needs
Auckland represents the key economic hub of New Zealand (Commuting in Auckland, 2006).
In 2006, 10% of the countrys population was said to be living in Aucklands central region
yet 15% of the countrys population held jobs in the central region (Commuting in Auckland,
2006). Customers are looking for efficient, cheap and quick ways to travel in and around

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Aucklands congested CBD. 38,000 commuters (2.5% of all commuters) use cycle transport
(Cycling Advocates Network, 2014). The Popular age demographic is 15-24 (Cycling
Advocates Network, 2014). The Commuter Pro will target this market but also aims to tap
into the large well of commuters who dont use a bicycle to commute. With 18% of New
Zealands population cycling regularly (at least once per month), there is huge scope to
expand cycle commuting but what is needed is incentive.
3.4 The Product and Service
The Commuter-Pro creates an incentive for cyclists who dont commute by offering reduced
rates for regular cycle commuters. The system offers an online profile on which stats such as
petrol saved, distance travelled and rates saved are displayed. The reduction in rates will
offer the initial incentive to engage in cycling as a method of commuting. The online data
and connectivity with friends and other users will offer further incentive and will make
commuting fun and productive.
3.5 Suppliers and Partners
The first supplier/partner would be a cyclo-computer company such as Cateye or Garmin.
Working in conjunction with an established cyclo-computer company would ensure a high
quality product that would be converted and customised for the Commuter-Pro
requirements. Software suppliers such as SAP would also be used to maximise efficiency.
Two key partners would be the government and local councils. Being a public sector
investment it is imperative that government/council policy reflects the Commuter-Pro
concept.
3.6 Strategy: Focussed Low Cost
The Commuter Pro will initially be marketed towards the 18% of New Zealands population
that cycle regularly but do not commute. It is therefore a relatively narrow market. It is
imperative that costs are kept low for consumers who will buy the product off the local
council/government. Low cost will mean accessability to all and a larger market and this will
not only make it more enticing to local councils but to commuters as well.

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The overall strategy is therefore Focussed Low Cost.
3.7 Value Chain Activity: Service After Sale
The most important value chain activity for this business is Service after sale.
Developing consumer consciosness and changing the way people think about commuting
will require functional, easy and fun online profilling. To make sure the Commuter-Pro
achieves lifestyle change regular updates, news and customer relationship building after the
sale is crucial to creating a culture based around the product. After sale service will also
cover updating online functions to keep usage of the Commuter-Pro fun, relevant and fresh.












3.8 Business Processes

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START
Customer Places
Order
Order Received
Payment Taken
Invoice Processing
Inventory
Packaging

$

$

$
Purchasing
Distribution
Items in Stock?
Quality Control/
Packaging
Yes
Place order with
Supplier
Receive Order
No
Dispatch
Order Received?
Finish
Yes
Order Tracking
En Route?
Yes
No
3.8.1. INVENTORY AND SALE PROCESS The Commuter-Pro involves ordering inventory from
outsourced producers (Cateye/Garmin) and the onsale to the Government/council involved
in the scheme. It then involves the re-sale to consumers/commuters. Essentially,
Commuter-Pro as a company acts as a wholesaler to the Government/council which then

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sells it on (possibly at a subsidised rate) to consumers.


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3.8.2. CUSTOMER FEEDBACK PROCESS The regular update and maintenance of the
Commuter Pro, in particular the online component, is a crucial process in order to build a
user friendly interface that promotes cycling and the use of the Commuter Pro.



START
Customer Feedback
Received
Product
Adjustments/
Software Updates
Implement Changes
Customer Online
Feedback Form
Provided
Issues with new
updates?
Yes
Finish
No
Research & Development
Automated Online Feedback Process CRM Department

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3.9 Functionalities
3.9.1. INVENTORY AND SALE PROCESS
Ordering inventory
Managing stock inflows and outflows (stock levels)
3.9.2. CUSTOMER FEEDBACK PROCESS
Receiving online customer feedback forms and processing
Implementing changes to software and communicating them
3.10 Systems

3.10. 1. INVENTORY MANAGEMENT SYSTEM The Commuter-Pro Inventory Management
System would involved high levels of automation, scanning boxes as they come in and on
the way out. This would ensure an up to date and accurate ledger of stock would be
maintained at all times allowing for quick dispatch and sale.
3.10. 2. AUTOMATED EMAIL FEEDBACK SYSTEM This standardised online form represents the
best way in which the Commuter Pro can respond to the demands of consumers and keep
the product fresh and updated. Forms can be filled online and immediately sent to the
Customer Relations team who would then pass on any recommendations and changes to
the R & D team.
3.10. 3. CLOUD BASED DATA SYSTEM - The creation of and maintenance of a collated set of
personalised online data is key with regard to maintaining the data based side of the
Commuter-Pro. The regular update and maintenance of this cloud based system is a core
competency of the Commuter-Pro as a product and will be key to ensuring success.

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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)
Service after
sale and
delivery
product
1. Inventory
and Sale
Process
1. Ordering inventory

2. Managing stock inflows and outflows (stock
levels)
Inventory ordering system

Inventory management
system
Transaction processing
systems
Transaction processing
systems

2. Customer
Feedback
Process
1. Receiving online customer feedback forms
and processing

2. Implementing changes to software and
communicating them
Automated email feedback
system


Cloud based data system
Customer relationship
management

Customer relationship
management

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CONCLUSION
The Commuter Pro aims to make the world a better place by incentivising cycling as a
commuting alternative. Information systems hold significant importance and relevance to
the Commuter-Pro. Online databases and profiles are at the core of the concept, providing
users with valuable statistics that measure and quantify the benefits of using the
Commuter-Pro. Appropriate application of information systems in the day-to-day running of
the business will also ensure the Commuter-Pro is relevant, efficient and an overall
progressive and advanced tool.
REFERENCES

1. Next Bike. (2012). Next Bike New Zealand. Retrieved from
http://nextbike.co.nz/company.html

2. Lincoln Tan. (2013). Auckland Traffic Jams Creat City of Snails. Retrieved from
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11152630

3. NZ Transport Agency. Planning for Public Transport. Retrieved from
http://nzta.govt.nz/planning/process/public-transport/

4. Cycling Advocates Network. (2014). Facts About Cycling in New Zealand. Retrieved
from http://can.org.nz/system/files/CAN%20Cycling%20Facts.pdf
5. Rosemary Goodyear. (2006). Commuting in Auckland. Retrieved from
http://www.stats.govt.nz/browse_for_stats/people_and_communities/Geographic-
areas/commuting-patterns-in-nz-1996-2006.aspx

6. Deutsche Gesellschaft fr Ad-hoc-Publizitt mbH (DGAP). (2014). Dialogue
Conductors Bluetooth Smart DA14580 Sees Early Success in Health and Fitness
Market. Retrieved from
http://ezproxy.auckland.ac.nz/login?url=http://search.proquest.com.ezproxy.auckla
nd.ac.nz/docview/1513272311?accountid=8424






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