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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Kavi Patel
NetID kpat735
Group Number: 325
Website Link: http://infosys1102014s1group325.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Olivia Shultz Friday 9am
Time Spent on
Assignment:
18 hours Word Count: 1649

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A MORE ACTIVE FUTURE
INTRODUCTION
There are many inactive and unhealthy people in New Zealand, which is largely preventable.
Its largely due to the fact that fitness levels are unsatisfactory for many individuals. The
best way to combat this is to target customers who will be children in schools and to
encourage them to exercise more than their nomal routine. This will ultimately reduce the
prevalence of inactive adults in the future through the lives of these children and create a
more active future.
3. BUSINESS SECTION
3.1 Vision
To provide the best fuelband for schools by way of quality and reliability to increase
activity in the future so that individuals can lead better lives, live healthier and improve the
world by influence.
3.2 Industry Analysis: Activity tracker and fitness monitor industry
Industry: Activity tracker and fitness monitor industry. Tracking the activity throughout the
day for further analysis (periods of inactivity is included).
Force: High/Low: Justification:
Buyer power: High There are many competitors, for example Fitbit,
Jawbone, Lifetrak Move and many more. This
means buyers have many options to choose from,
making buyer power high. (Activity Tracker
Comparison, 2013)
Supplier power: Low Many suppliers will be able to provide the raw
materials to the activity tracker and fitness

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monitor industry. Therefore buyers (this industry)
will have a lot of choices of whom to buy from.
Alibaba shows just a fraction of the amount of
raw materials available from different sources,
for example J-Style. (Alibaba, 2014)
Threat of new entrants: Low There are many existing companies in the
industry indicating that entering the industry
would be quite difficult, in the form of capital and
knowledge. An example of this can be seen in
Fitbits need for knowledge before they started
up their business in 2007 which is relatively
recent. (Fitbit, 2007)
Threat of substitutes: High There would be alternatives such as a pedometer,
but it still would not give the same analysis
quality of this industry. It does not offer the same
level of data collection as a activity tracker does.
(Timex, 2014) However many people do not use
them and are still active making the threst of
substitutes high.
Rivalry among existing
competitors:
High Nike, Fitbit, Jawbone are among the many
companies that offer activity trackers. Rivalry
between these competitors will be fierce, there
are big names in the industry holding high power.
(Activity Tracker Comparison, 2013)
Overall attractiveness of the industry: The industry is not too attractive, the buyers have
high power, threat of substitutes is high and rivalry among competitors is high. There are
already dominant companies in the industry who lead making it difficult to strive in it.

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3.3 Customers and Thei r Needs
The target group of customers are children in school. To lay down the foundation of an
active life, this would be much more beneficial than appealing to adults who are most likely
already set into their routines and are unlikely to look for change in their lives. If activity
increased at a young age this would lead to a increase in activity if the routine is set at a
young age. In 2012/13 almost one in three adults were obese in New Zealand, this is far too
many which calls for more active lifestyles as well as one in nine children being obese.
(Ministry of Health, 2014)
3.4 The Product and Service
The product will monitor and store activity levels during the day. This will encourage
students to compete with each other, between classes as the information gathered is stored
in a database, and analysed. The teachers in the schools will be a vital part of the motivation
as well, they have the analysis to monitor the children to enhance their progress. The whole
point is to monitor activity levels, gain knowledge, awareness of exercising and its
usefulness in avoiding inactivity in the future.
3.5 Suppliers and Partners
There will be a rubber band required, this will be supplied from Aerospace Innotech.
(Alibaba, 2014) Another supplier for the components of the actual tracking will be in house
company Jaycar, the actual electronics and storage of data in the fuelbands that the children
will wear. (Jaycar, 2014)

A partner will be push play as they are aligned with the vision of getting people to be more
active as we attempt to roll out our product, working together to increase activity in
schools. (Sport NZ, 2014) Another partner would be the distribution shipping company to
send our products across the globe, we will be using mainfreight. (Mainfreight, 2014)
3.6 Strategy: Focused High Cost

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We are looking at targetting a specific grooup in the form of children (in schools). Although
our product may be used by adults, we are primarily looking at children. Therefore it will a
narrow scope.
The cost strategy that we are looking to achieve is a high cost because we are looking at
providing children with the best materials so that the accuracy in our product can be
reliable, the cost of these will be reflected in the price.

The overall strategy is therefore Focused High Cost.
3.7 Value Chain Activity: Procurement
The most important value chain activity for this business is Procurement.
This is purchasing the inputs such as the raw materials, resource equipment and supplies.
This will look to increase the quality of raw materials that we gain for the best possible
product so that we can produce and a product that delivers with percision recordings and
speed to be uploaded to the database for further analysis. This is aligned with our vision of
being the best as we continue to source better quality materials to rise above our
competitors and lead in the industry.

3.8 Busi ness Processes
3.8.1. INVENTORY CONTROL PROCESS - The inventory control process ensures enough stock is
on hand to be sold to customers. There should always be an additional 5,000 units on hand
for customers to buy from. To make sure this happens there will need to be raw materials
ordered to make the additional units. This directly links to procurement because it is the
purchasing of the original inputs before we transform it into the output product. Because
we have stock on hand our customers will expect to be able to buy with confidence knowing
they will get the product with speed increasing customer satisfaction.
INVENTORY CONTROL PROCESS MODEL

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Start
End
End
Count stock on
hand
Is there an
excess of 5,000
units after sales?
Yes
Do not need to
order more
materials
No
Order enough raw
materials to have
5,000 units on hand
Produce units and
place them in stock
Raw Materials
Purchasing
Department


3.8.2. QUALI TY ASSURANCE PROCESS The quality check of all the raw materials are put
through a test so that every single raw material is tested for. To make sure that we do not
faulter in our quality so that we can deliver a flawless product to the best of our ability to
the customer. The main purpose is to make sure that for production of the product, the
materials that did not meet the standard have been eliminated and replaced by materials
that do meet the high standard of quality thats set.

QUALITY ASSURANCE PROCESS MODEL

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Start
Send raw materials
to be checked for
quality
Does it meet
standard
requirements?
Send complaint to
suppliers and
request
replacement parts
Send to factory for
product to be made
No Yes
Receive
replacement
materials
END
Quality Assurance
Department



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3.9 Functionalities
3.9.1. INVENTORY CONTROL PROCESS
Identify how many raw materials we need.
Create and send order for raw materials.
3.9.2. QUALI TY ASSURANCE PROCESS
Check in materials and the quality of individual raw materials.
Sending the materials with works number to the production line.
3.10 Systems

3.10. 1. INVENTORY/MATERIALS MANAGEMENT SYSTEM Ensures that stock is high and
available which is 5,000 units. This is done by creating a request and sending it to the
suppliers for the raw materials. This system will detect stock levels and send the order to
the suppliers for raw materials. This future planning will increase customer satisfaction as
there will always be stock to choose from because of the manufacturing process continuing
to work by obtaining the raw materials required to make outputs.
3.10. 2. QUALI TY ANALYSI S SYSTEM - The quality analysis system checks all materials that
come from suppliers and each one will have to meet the standard. This links to the function
of checking it in house to search for defects and ensure each raw material is up to standard.
This is aligned with the vision to supply the customer with the best product, value, so that
there are minimal defects through thorough checking of materials from suppliers. This will
also contribute to the high cost as labour and costs associated with checking each item is
high.
3.10. 3. PRODUCTI ON UPDATING SYSTEM This allows for the materials that are not up to
standard to be re ordered which would update the database to send the goods that were
not up to standard back to the supplier and get replacements. The materials good enough
are passed on to the production line for further processing. This will also update the
database of the products produced. This will help in knowing how many orders can be taken
or how many units will need to be produced after taking the order. This will ensure that the
customer is not dissatisfied by not receiving the product in time also decreases inaccuracy
because of constant updating.

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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)



Procurement
1. Quality
assurance
process
1. Check in materials and the quality of
individual raw materials.

2. Sending the materials with works
number to the production line.
Quality analysis system


Production updating system
Transaction Process
System


Transaction Process
System
2. Inventory
control
process
1. Identify how many raw materials we
need.

2. Create and send order for raw
materials.
Inventory/materials
management system

Inventory/materials
management system
Decisional Support System


Transaction Process
System


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CONCLUSION
The overall idea of our business is to create an environment in which kids are encouraged to
exercise and reduce prevalence of obesity in the future. This is to be implemented in schools
to help kids in this transition. This can only be effective if the activity levels are tracked for
each individual and uploaded on to an external database that can then be further analysed
giving feedback that teachers can relay to the children.

REFERENCES
Activity Tracker Comparison. (2013). Retrieved from Activity Tracker Comparison Web site:
http://activitytrackercomparison.com/wp-content/uploads/2013/11/Comparison-chart-page-001.jpg
Alibaba. (2014). Retrieved from Alibaba Web site:
http://www.alibaba.com/trade/search?fsb=y&IndexArea=product_en&CatId=&SearchText=activity+tr
acker+supplier
Alibaba. (2014). Retrieved from Alibaba Web site: http://www.alibaba.com/product-detail/Wristband-tracker-
LF-active-wake-up_1803657512.html?s=p
Fitbit. (2007). Retrieved from Fitbit Web site: http://www.fitbit.com/nz/company
Jaycar. (2014). Retrieved from Jaycar Web site: http://www.jaycar.co.nz/
Mainfreight. (2014). Retrieved from Mainfreight Web site: http://www.mainfreight.com/global/en/global-
home.aspx
Ministry of Health. (2014). Retrieved from Ministry of Health web site: http://www.health.govt.nz/our-
work/diseases-and-conditions/obesity/obesity-key-facts-and-statistics
Sport NZ. (2014). Retrieved from Sport NZ Web site: http://www.sportnz.org.nz/en-nz/communities-and-
clubs/Push-Play/
Timex. (2014). Retrieved from Timex Web site: http://www.timex.com/watches/timex-pedometer-t5e011m8