INFOSYS 110

D2 FINDING LOST / STOLEN ITEMS SEMESTER 01 2014

Name SangHo Choi Scho660 5845766
Tutorial Details
Tutor: Day: Time:
Claris Chung Monday 9am
Time Spent on
Assignment:
12hours Word Count: 1576
INTRODUCTION
For countless years, many people around the world have had a valuable item stolen/lost or even both. The significant number of individuals
will know how hard it would be to recover from losing such items. To some, this may seem as a small troublesome issue that does not compare
to the more outstanding issues local communities, states and nations face today. But this small issue, it is a common problem that most if not
all have encountered at LEAST once in their lifetime. However, with Micro-GPS chip people will not have to struggle when their property is lost
or stolen.
VISION STATEMENT
It is inevitable that for most, their property will be taken/stolen from anywhere and everywhere. With some people, this issue is a daily
occurrence which will be frustrating process to overcome. Micro-GPS chip focus on solving this issue completely to make peoples life
comfortable and enjoyable.
INDUSTRY ANALYSIS: MICRO-GPS CHIP INDUSTRY
Industry: Micro-GPS chip industry.
Force: High/Low: Justification:
Buyer power: High There are many microchip manufacturers all over
the world. Buyers have many choices of whom to
buy microchips from. (Wikipedia, 2014)
Supplier power: Low Buyers have many choices of whom to buy
microchips from. (Wikipedia, 2014)
Threat of new entrants: Low The factories in which microchips are made,
called fabs, can cost billions of dollars. The entry
barrier is significant. (Christopher, 2014)
Threat of substitutes: Low There are very few alternatives to a product. Even
these alternatives cannot substitite microchip
completely. (PETA, 2012)
Rivalry among existing
competitors:
High Competition in a market is really fierce. Major
microchip companies are competing not only the
price but advanced technology. (Christopher,
2014)
Overall attractiveness of the industry: Opening cost of the business might be substantially high. However, once the business is on running,
there are no real threat from new entrants or substitute. The industry is fairly attractive if there is a sufficient fund.
CUSTOMERS AND THEIR NEEDS
Micro-GPS chip is mainly targeted for old aged people who has memorization problems. Forgetfulness is a common complaint among older
adults. It is natural to have memory problem as people get older. As we grow older, we experience physiological changes that can cause
glitches in brain functions we have always taken for granted. It takes longer to learn and recall information.(Melinda Smith, Lawrence
Robinson, and Robert Segal., 2013) For them, it will take a lot of time to find lost goods. Even more, it is possible for them to not being able to
find the goods without external help.
THE PRODUCT AND SERVICE
GPS these days are smaller than the size of a babys fingernail. Tiny GPS chip can be fitted into any devices that you want to track. For
example, watches, cellphones, USB, laptops and other devices as small as these. GPS usually mean a GPS receiver. The Global Positioning
System (GPS) is actually asconstellation of 27 Earth-orbiting satelites (24 in operation and three extras in case one fails). Each of these 3,000 to
4,000 pound solar powered satelites circles the golbe at about 12,000miles (19,300km), making two complete roations every day. The orbits
are arranged so that at any time, anywhere on Earth, there are at least four statelites visible in the sky. A GPS receivers job is to locate four
or more of these satelites, figure out the distance to each, and use this information to deduce its own location. (Marshall Brain and Tom Harris,
2011) Ideally, the chip is inserted in the item and will be able to track the item when it is lost. The process of inserting chip in the item is simple
and once the chip is inserted, it can be used for a lifetime.
SUPPLIERS AND PARTNERS
SUPPLIER 1: MAJOR MI CROCHIP MANUFACTURERS
The major disadvantage of purchasing microchips from major microchip manufacturers is high cost. However, there are also advantages which
are quality assurance and reliable distribution. Example of major microchip manufacturers and the product are Samsung and Intel and their
advanced microchip which is size of 14nanometers. (Christopher, 2014)

SUPPLIER 2: MINOR MI CROCHIP MANUFACTURERS
The major disadvantage of purchasing microchips from minor microchip manufacturers is low quality and non-reliable distribution comparing
to those from major manufacturers. However, the cost will be much less. Example of minor microchip manufacturers and the product are local
manufacturers and their bigger size of microchip.

PARTNER 1: LOCAL DISTRIBUTOR
The major disadvantage of doing business with local distributor is higher cost. Trained agents will be needed for the local distributors to assure
the quality and by doing this process the extra cost will occur. Also there will be extra shipping cost generated because first, the product is
going to be shipped from the company to local distributor then shipped again from local distributor to customers. However, advantage of
doing business with local distributor is broader market since the product is going to be distributed from multiple sources.
PARTNER2: SELF-DISTRIBUTION
The major disadvantage of self-distribution is narrow market. It is hard to distribute the goods worldwide from a single source. However,
advantage of self-distribution is less cost. There is no need of extra shipping cost or train fee since the good is distributed from company own
source.
STRATEGY: COST LEADERSHIP
I would use cost leadership strategy because target of the product will be broad range of ordinary people. To satisfy their needs, the market
should be broad and the cost should not be high. Therefore, I will purchase the goods from Supplier2: minor microchip manufacturers to
reduce the raw material cost and I will do business with Partner1: local distributer to distribute products in broad market.

VALUE CHAIN: AFTER SERVICE ACTIVITY
The most important value chain activity for this business is after service activity. This business targets old aged people it is expectable that
some of customers will struggle when they use the product. Service centre should be placed locally for customers convenient and people who
works in the service centre should be well thought to guide customers perfectly. Also way to contact service centre should be easy and simple
so that customers can understand easily and satisfy from the service and product.
BUSINESS PROCESS
BUSINESS PROCESS 1: CUSTOMER SERVICE PROCESS
Contacting service department should be simple and easy for customers convenient. Contact details will be printed out on the product box.
Once customer contacts service department, they will be guided to following departments depending on what problem they are experiencing.
After the service, employees will ask for feedback to produce better service.
Customer contacts
service centre
States problem the
customer is
experiencing
Is it technical problem?
Yes
Guided to technician
No
Guided to operator
Problem solved?
No
Ask for feedback and
end the case
Yes
Problem sovled?
Yes
Refund
No

Business process 1: Customer service
process
BUSINESS PROCESS 2: TRAINING PROCESS
Employees who works in service centre should be providing quality service to satisfy customers. First of all, employees should be requirement
to be hired. Employees who does not have certain level of communication skills should be trained repeatedly to provide quality service.
Employees who have good communication skills should be paid more wage compare to those who do not have.
People apply for job
Certain level of
communication skills?
Yes
Meets requirement?
Pay more wage
Hire
Yes
Do not hire
Provide communication skill
education
Successful?
Yes
No

Business process 2:
Training process

FUNCTIONALITIES
Customer service process.
Service should be provided in multiple languages to provide service worldwide.
Feedbacks should be recorded to improve service quality.
Training process
Skilled communication skill provider is needed to provide quality communication skill education.
Increased amount of wage should be enough to motivate employees.

SYSTEMS
System 1: Groupware system
Groupware system incorporates with the customer service process by making interactions possible at every place and every time. To make
customers life comfortable and enjoyable, service centre should be available at every place and every time.
System 2: Database-based workflow system
Database-based workflow system incorporates with the customer service process by storing previous problem occurred and feedbacks
provided from customer. Employees will be able to response to customer faster by using database-based workflow system and make
customers satisfied.
System 3: Knowledge Management system
Knowledge management system incorporates with the training process by supporting employees education by use of know-how. Customers
will be satisfied with improved service provided by trained employees.


3.11. Summary Table: Value Chain to Systems

Value Chain
Activity
Processes Functionalities Specific Information System(s) Broad Information System(s)

After
serivce
activities
1. Customer
service
process
1. Service should be provided in multiple languages
to provide service worldwide

2. Feedbacks should be recorded to improve service
quality
Database-based workflow
system

Groupware system
Collaboration System

Enterprise Resource Planning
system
2. Training
process
1. Skilled communication skill provider is needed to
provide quality communication skill education.

2. Increased amount of wage should be
enough to motivate employees.
Knowledge management system


Database-based workflow
system
Transaction processing
system

Customer relationship
management system

CONCLUSION
Micro-GPS chip business will have high initial cost but once it starts to operate, it is low risk business
since there is no real substitute. However, the business should maintain the cost leadership strategy
since the main target of the product is ordinary people. Also, the quality of service should be very
important to run this business long. Value of the business will be significant in the society since
everyone must have at least one good that they do not want to lose.

REFERENCES
1. Wikipedia. (2014). Retrieved from
http://en.wikipedia.org/wiki/List_of_integrated_circuit_manufacturers
2. Christopher. (2014). Quartz. Retrieved from http://www.businessinsider.com/just-four-
companies-will-produce-the-microchips-on-which-the-global-economy-depends-2013-4?IR=T
3. PETA. (2012). Retrieved from http://www.peta.org/living/companion-animals/microchip/
4. Melinda Smith, Lawrence Robinson, and Robert Segal. (2013). Age-Related Memory Loss.
Retrieved from http://www.helpguide.org/life/prevent_memory_loss.htm
5. Marshall Brain and Tom Harris. (2011). Howstuffwork. Retrieved from
Howstuffworkhttp://electronics.howstuffworks.com/gadgets/travel/gps.htm