Name Michelle (Fu-Yun) Wang NetID Mwan475 Group Number: 511 Website Link: http://group511d2.blogspot.co.nz/ Tutorial Details Tutor: Day: Time: Kirsten Thursday 12am Time Spent on Assignment: 30hours+ Word Count: 1647
2 U-BIKE PUBLIC BIKE RENTAL SYSTEM INTRODUCTION Our problem statement: The current efficiency of the bus transportation system around Auckland City and North Shore. Our solution was: The implementation of a public bike rental system called U-bikes, used in conjunction with the current bus transportation system. It will encourage public transportation usage rather than personal vehicles. Since the cause of the current inefficiency of bus transportation system is mainly due to congestion, reducing personal vehicles off the roads, buses wouldnt be hindered by traffic. Hence, our current bus transportation system can be more efficient. 3.1 Vision To deliver a convenient, reliable and leading service in the public transportation industry that exceeds the expectations of our customers while also providing physical health benefits to the individual. 3.2 Industry Analysis: Public transportation industry Forces High/Low Justification Buyer power HIGH Research shows buses are the most common form of public transport followed by trains. Buyers ultimately hold the power to drive prices down for new companies entering the industry as the change in customers preference of public transportation will not change immediately. Supplier power LOW Suppliers are easily interchangeable because suppliers are unable to differentiate raw materials required for the manufacture of public transportation vehicles. Steel represents one of the most essential raw material required for public transportation vehicles. As the industry has a wide range of possible suppliers, the power of suppliers to drive up the prices of inputs is low. Threat of new entrants LOW Implementing a new public transportation system requires a lot of start-up costs which is considered risky for companies. Profits to be made from public transportation would require a long time because start-up costs would need to be covered and the public would have to be able to accept and adjust to this new form of public transportation. Approximately $0.6 billion has been spent on NZ public transportation to date and its constantly increasing. Threat of substitutes HIGH Only 2.5% of New Zealanders make use of public transport because public transportation isnt cheap. (Hon Pete, 2005, pg7) $1.90 for 1 stage of bus ride for adults. Major threat of substitutes is personal vehicles.
3 Rivalry among existing competitors HIGH In this industry, the two game players are buses and trains. Buses and trains make up a large percentage of New Zealands total public transportation revenue. As competition is already fierce in the industry, in order for new companies to survive and generate profit, they must have an innovative competitive advantage or something that appeals to the target market. Overall attractiveness of the industry: The public transportation industry isnt attractive as 3/5 forces are high. Buyer power is high as buses and trains are the main game players in the industry. Threat of sustitutes is high as public transportation isnt cheap, only 2.5% of New Zealand population uses it. Rivalry among existing competitors is high as a large proportion of New Zealands public transportation revenue is earnt by buses and trains. 3.3 Customers and Thei r Needs: University Students, Workers North Shore students face weekly fare rises of $10 or more with the removal of the Northern Pass. Bus and train transportation fees arent cheap even with school concessions. (Mathew, 2013) From transportblog.co.nz, it was mentioned that buses disappear at random. New Zealanders are often faced with inconveniences by the system and it affects people that have a set time to be at a destination. (Matt, 2014) In a 2013 survey, almost 31% NZ adults were obese whereas 1/9 children were obese. This shows the need for New Zealanders to exercise. (Ministry of Health, 2013) Evidence shows our target market demands a cheap and reliable public transportation system. 3.4 The Product and Service Customers face expensive and rising bus fares. U-bike targets at users on low budget. The first 30 minutes use of the bike is free and for every 5 minutes afterwards, 30 cents is automatically charged on your AT Hop card. The 30 minutes free usage is an incentive for U-bike users to have a fast turnover rate. Through longer travelling times, users can benefit physically by exercising and toning up their bodies. U-bikes will be located at bus stops so people can always rely on U-bikes to help them reach their destinations. U-bike is designed to improve the efficiency of bus transportation systems as it minimizes vehicles on the road and is a life saviour when buses are delayed.
4 3.5 Suppliers and Partners Supplier 1 U-bike would source their supply of bicycles from Giant bicycles. They are renowned for its high quality guaranteed bicycles and have pioneered advancements. Supplier 2 Mercury Energy. Many functions of U-bike requires the usage of electricity. Electricity is required to keep track of the usage of bicycles and to provide users with a control panel which instructs the user how to use the U-bike. Partner 1 Auckland Council. U-bikes would work with the AT Hop card system which the Auckland Council has reinforced for travel on public transportation in terms of universal payment through the prepaid smart card. Partner 2 Tourism Industry Association NZ. Through collaboration, U-bikes can receive international awareness and publicity. Tourism industry can schedule tours around NZ and use U-bikes as the main source of transportation. 3.6 Strategy: Cost Leadership strategy U-bikes follow a low cost strategy as its competing with other public transportation systems offered prices so the first 30 minutes use of the U-bike is free. U-bike follows a broad market competitive scope as its targeting to be one of the most frequently used transportation system in NZ. Although U-bike targets at customers that are students and workers, it forms a partnership with Tourism Industry Association NZ to make sure that there is publicity internationally and nationally. The U-bike aims at markets beyond NZ as well. 3.7 Value Chain Activity: The market and sell of U-bikes U-bike needs to investigate on an effective marketing strategy for customers to switch to use U-bikes to achieve its vision statement of delivering a low cost and convenient service. A strategy would be to advertise the price competitive U-bikes as students would be able to cut back their transportation spending. Marketing strategies are essential in order to achieve international and national publicity. Revenue from U- bikes would be generated through the increased usage of U-bikes and it would give an indication of how successful the marketing for U-bikes are.
5 3.8 Busi ness Processes Business Process 1: Marketing Campaign Management Process Justification: By managing market campaigns for U-bikes, it will gain publicity both internationally and nationally. Marketing campaigns will be focused on targeting customer demands through obtaining the right information from the assistance of the customer feedback business process. This ensures the accuracy in determining the needs of customers in a public transportation system therefore the marketing campaign management process can improve efficiencies. Business Process 2: Payment management business process Justification: By controlling the payment management business process, U-bikes can be easily retrieved by a swipe of the AT Hop card and the transaction would be immediately acknowledged. Payments are automatically charged on the Hop card. This technology incorporated payment process improves efficiencies and allows the smooth flow of the bike rental cycle. Without it, humans
6 have to physically record the rental and return of bicycles.
3.9 Functi onal i ti es - Marketing Campaign Management Business Process Functionality 1: Advertising U-bikes Functionality 2: Develop marketing strategy - Payment Management Business Process Functionality 1: Integration of the U-bike payment system with the AT Hop card system Functionality 2: Automatic updates on the U-bike payment systems 3.10 Systems
Specific Information systems 1: Marketing Management Systems U-bikes need to be advertised and an effective marketing strategy needs to be constructed in order to fulfil the vision statement of to deliver a convenient, reliable, leading service . U-bikes need to gain publicity and this can be through advertisements and flyers etc. Market places need to be analysed, targeting at potential users and market through what will potentially appeal to the users.
Specific Information systems 2: Customer feedback systems Filling in the customer feedback form online and asking for assistance at the kiosk machines are incorporated within the customer feedback system. This achieves the vision of providing a leading service that exceeds the expectations of the customers. Input of customers responses to the U-bike system will enhance the value of the service to the customer and improve customer satisfaction and expectations.
Specific Information systems 3: Bike rental information systems Integration of the U-bike payment system with the AT Hop card system and automatic updates on the U- bike payment are incorporated under the bike rental information systems. In order to deliver a convenient service, U-bikes transaction processes have been integrated with the AT Hop card system so users can enjoy the benefits of convenient payment process. U-bikes transaction processes through AT Hop cards have to be updated regularly to remove bugs or technical glitches.
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3.10 Summary Tabl e
Value Chain Activity Business Processes Functionalities Specific Information Systems Broad Information Systems
Market and sell the product Marketing Campaign Management Business Process 1. Advertising U-bikes
2. Develop a marketing strategy 1. Marketing Management Systems
2. Marketing Management Systems
1. Transaction Processing Systems
2. Transaction Processing System Payment Management Business Process
1. Integration of the U-bike payment system with the AT Hop card system
2. Automatic updates on the U-bike payment systems 1. Technology improvement systems
2. Customer feedback Systems 1. Transaction Processing System 2. Customer Relationship Management Systems
CONCLUSION Our public bike rental system called U-bikes that aims to deliver a convenient, reliable and leading service in the public transportation industry is supported by bike rental information systems, customer feedback systems and marketing management systems. The systems incorporated the various functionalities within the marketing campaign management and payment management business process to provide an intricately designed U-bike rental system. Through the guidance of information systems and information technology, value is created and captured through the marketing and usage of U-bikes. REFERENCES 1. Dearnaley, Mathew. (2013, September 5). Some comfort for bus passengers facing massive fare rises. Retrieved from http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11120146 2. Ministry of Health. (2014, January 13). Obesity Key facts and Statistics. Retrieved May 19 2014 from http://www.health.govt.nz/our-work/diseases-and-conditions/obesity/obesity-key-facts-and-statistics 3. Baltzan, Paige. Lynch Kathy. Blakely, Peter. (2008) Business Driven Information Systems. Second Edition. New York. McGraw-Hill/Irwin 4. Auckland Transport. (2014). Bus Fares. Retrieved from http://www.maxx.co.nz/info/pricing-passes/bus- fares.aspx
8 5. Giant. (2014). About Giant. Retrieved from http://www.giant-bicycles.com/en-nz/aboutgiant/ 6. Mercury Energy. (2014). About us. Retrieved from http://www.mercury.co.nz/About-Us.aspx 7. Hodgson, Hon Pete. (2005). Getting there on foot, by cycle. New Zealand. pp7. Retrieved from http://www.beehive.govt.nz/Documents/Files/Getting%20there.pdf. Access date: 23 rd May 8. L, Matt. (2014, March 26 th ). Bus route frustration. Retrieved from http://transportblog.co.nz/2014/05/