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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS
SECTION
2014

Name Nicole Alisa Chan
NetID Ncha756
Group Number: Group338
Website Link: http://infcsys1102014ssgroup338.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Nicholl Obilitas Costa

Thursday 11am
Time Spent on
Assignment:
20 hours
Word
Count:
1558





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GNA IRRIGATION CONTROL SYSTEM
INTRODUCTION
Water is a necessity for all living beings on earth and agriculture irrigation is the largest
consumer of water agricultural sector consumes about 70% of the planet's accessible
freshwater (WWF, 2014) The problem is not only agriculture irrigation being the greatest
consumer of water but it also uses water unsustainably leaky irrigation systems, wasteful
field application methods and cultivation of thirsty crops not suited to the environment
(WWF, 2014). Water is today is scarce hence water wastage from irrigation will increase the
cost of production for farmers, driving the prices of crops upwards leading to global impacts
such as long term increased food prices or food shortage. One way of addressing this
problem is by initiating the GNA irrigation control system.

3.1 Vision

Expanding future food supply by thriving a cost effective irrigation system

3.2 Industry Analysis: Agricultural Irrigation system industry


Industry: Aggricultural irrigation system industry

Force: High/Low: Justification:
Buyer power: High Similar products are available in the market such as
Delmhorst KS-D1 digital soil moisture tester (PC & PC,
2014) and ASR ( wireless soil moisture monitoring) . This
product is similar to GNA because it also has the primary
function of measuring soil moisture in order to conserve
water and to optimize crop plant growth (PC & PC, 2014).
Buyers have control over price as soil moisture probe is in
a highly competitve market as there are many firms in the
market, enabling customers to drive prices down

Supplier power: Low Two suppliers who GNA will need include electricians and
softerware developers ( programmers ). There is currently
a demand for these two occupations. According to
careersNZ, Your chances of finding work as an
electrician are good due to increasing demand for their
services and too few people training for the role.
(Careers.govt.nz, 2014)
And Chances of getting a job as a programmer are good
due to increasing demand for their services.
(Careers.govt.nz, 2014)


An increase in demand for electricians and programmers
suggests there are not many people with this expertise and

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since they are our suppliers, the chances are we are unable
to switch to different suppliers easily.


Threat of new
entrants:
High Considering buyers have high power mean there are many
competitors. Many competitors in the industry mean that
the barrier to entry is low. Therefore most likely low set up
costs, affordable infrastructure, low rules & regulations.
Hence firms are able to enter the market with ease leading
to increase competitions.

Threat of substitutes: High There are two methods of measuring soil moisture. This
involves either using metal/sensors or through direct
inspection ( stolzy, cahoon, Szurzkiewicz 1957)
GNA irrigation control system uses soil moisture probes.
This is under the direct inspection method. Under the
metal/sensor method there are many tools which can also
be used to measure soil moisture. For example
tensiometers, dataloggers and soil moisture blocks. These
are all subsitute products. ( stolzy, cahoon, Szurzkiewicz
1957)
Rivalry among
existing competitors:
High High, since the barrier to entry is low this will result in
firms gaining easy entrance into the irrigation system
market. This will result in an increase in competitors in the
industry hence greater rivalry.

Overall attractiveness of the industry: A very competitive industry hence not very
attractive. GNA will need to really stand out to position themselves in their customers minds.

3.3 CUSTOMERS AND THEIR NEEDS
The needs of agricutural farmers involves growing high quality crops and secondly to reduce
the cost of crop production. In order to sell their crops on the market ( locally or
internationally) farmers firstly need to grow healthy and high quality crops. The key to this
comes down to the right amount of water present in soil. According to (Floyd, 2014) A
suitable level of water in soils helps plants grow faster , increasing harvest cycles,
increasing productivity finally increasing supply of crops, enabling the farmers to sell more
to their customers hence generating more revenue. Farmers demand a product, which will
optimize plant growth, by giving plants the suitable and sufficient amount of water needed
for growth. This not only optimizes plant growth but also reduces the cost of which help
farmers maintain a profitable business.
3.4 The Product and Service
GNA gathers real time data of the current local weather through the use of wi-fi. This
involves atmospheric information ( e.g temperature, air moisture ). It also measures soil
moisture via electrical currents . Information collected is sent to, e.g a smartphone
application or computer software designed to present data collected from probes and local
weather reports assisting farmers by making better decisions towards how much water
should be used to irrigate crops preventing over irrigation of crops and reducing water

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wasteage leading to reduction in water fees hence lower cost of production. Crop growth is
also optimized because water given to the plant is adjusted to soil moisture and also the
plants natural environment, correlates to A suitable level of water in soils helps plants
grow faster (Floyd, 2014) resulting in a greater supply of high quality crops, which will
increase the satisfaction of the farmers customers including local New Zealanders or export
countries hence are more likely to repurchase crops from the same farmers, ultimately
increasing the farmers wealth.
3.5 Suppliers and Partners
Suppliers : software developers and electricians.
Software developers are needed to design, update, create the application so the data can be
received from the probes. Electricians are needed for the wiring aspect of the probes e.g to
ensure water in soil can conduct electricity for accurate soil moisture measurement.
Partners: Metservice and Irrigation New Zealand .
Metservice is a world class provider of weather intelligence, automated prediction
techonology and weather data visualisation solutions (About.metservice.com, 2014) is
able to provide real time atmospheric information. Irrigation New Zealand leading the
irrigation sector forward in the development of sustainable irrigation and water resource
management (Irrigationnz.co.nz, 2014). Partnering with irrigation New Zealand ( INZ)
will ensure GNA can be a recognized irrigation system also providing better current and
future knowledge of sustainable irrigation
3.6 Strategy: cost leadership narrow market strategy
GNA satisfies a narrow markets as farmers, crop growers would buy a product to measure
soil moisture. Cost leadership because there are many firms who also sell soil moisture
probes. The greater the competition, the lower the price needed.
3.7 Value Chain Activity: Marketing and sales ( M&S)
Since there are also many firms selling similar products, M&S will need to be emphasized
greatly in order to convince farmers to use GNA over other similar products. Partnering with
INZ enables GNA to gain a greater scope towards irrigation in NZ hence provides more up to
date, accurate and useful information to use towards promoting optimum crop growth and
cost reductions, resulting in more effective positioning towards the farmers minds hence
farmers place greater value towards GNA rather than other similar products. This will enable
GNA to capture some of that value as profit. (Mindtools.com, 2014)





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3.8 Business Processes
Marketing Budgeting Process-
The purpose of MBP is to assist the managers with decision making regarding marketing
and sales. A Marketing budget will be produced by the accounting and finance department
is able to be used as a benchmark to motivate employees, and set target goals to ehance work
efficency within the marketing department.
Marketing Budgeting Process



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Advertising campaign process-
The purpose of an ACP is to come up with an idea which can be used to convince customers
to use GNA, through the use of media. This process is able help managers pitch a clear and
concise idea to sell and market our product more effectively.




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3.9 Functionalities

Marketing Budgeting Process:
Create budget- Produce the budget
Managers analyse Budget - Budget is sent and received by managers
Advertising Campaign Pocess:
Generate ideas develop and store ideas
Implement idea- Contact advertising campaign company.

3.10 Systems
The production of the budget statement is supported by The accounting system
through the use of accounting software. This supports MBP as the budget can then be
used by managers for present and future planning to help them make better decisions
as Managers will have a better future outlook towards enhancing marketing and
sales strategies in order to convince customers to purchase GNA. This will increase
customer base, resulting in more farmers using our product which in long term will
increase crop growth and food supply for the future.

Before budgeting analysis, budget must first be sent and received by managers. This
is supported by the Enterprise callobrative system. Tools such as emailing
supports MBP by enhancing timeliness which enable managers to receive the budget
in time to make good decisions also having greater outlook towards future
opportunities to gain competitve advantage, resulting in customers placing greater
value on GNA resulting in more farmers using our product which in long term will
increase crop growth and food supply for the future.

Part of generating ideas involve developing and storing ideas. This is supported by
data base work flow sytems ( DWFS ) which enables employees access an (e.g )
online document to edit and develop on different team members ideas. This will
stimulate creativity which encourages unique campaign ideas resulting in effective
positioning in customer minds resulting in greater value placed on our product hence
more farmers using our product which in long term will increase crop growth and
food supply for the future




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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)

Marketing and
sales
Marketing Budgeting Process Create budget- Produce the budget
Managers analyse Budget -
Budget is sent and received by
managers

- Enterprise
callobrative
system
- The accounting
system
- DSS


- DSS
Advertising Campaign Pocess Generate ideas develop and store
ideas
Implement idea- Contact
advertising campaign company.

- Data base work
f low sytems
- EIS

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CONCLUSION
In conclusion GNA is able to provide farmers with a cost effective and sustainable irrigation
system which can benefit them by increasing crop production and reducing cost of
production. Since GNA will face a lot of competition in the market. The sytems ECS, TAS,
DBFS is able to support marketing budgeting process and advertising campaign process to
enhance marketing sales, creating greater value towards Marketing and Sales towards
positioning GNA in the customers minds. Their purchase of our product will expand food
supply for future generations.
REFERENCES


About.metservice.com,. (2014). Weather for business About MetService. Retrieved 25 May
2014, from http://about.metservice.com/about-metservice/business-services/weather-
for-business/
Careers.govt.nz,. (2014). Electrician. Retrieved 25 May 2014, from
http://www.careers.govt.nz/jobs/construction/electrician/
Careers.govt.nz,. (2014). Programmer. Retrieved 25 May 2014, from
http://www.careers.govt.nz/jobs/information-technology/programmer/
Floyd, T. (2014). SOIL WATER. SOIL CARBON KEY TO SUSTAINABILITY. Retrieved 25
May 2014, from http://tedthefloyd.wordpress.com/soil-water/
H. Stolzy, 0. A. Cohoon, and T. E. Szurzkiewicz. (1957 APRIL,) Measurement of Soil
Moisture. Retrieved from: http://ucce.ucdavis.edu/files/repositoryfiles/ca1104p21-
66891.pdf
Irrigationnz.co.nz,. (2014). Vision, Goals & Objectives Irrigation New Zealand. Retrieved
25 May 2014, from http://www.irrigationnz.co.nz/about-us/vision-goals-and-
objectives/
Mindtools.com,. (2014). Porter's Value Chain: Understanding How Value is Created Within
Organizations. Retrieved 25 May 2014, from
http://www.mindtools.com/pages/article/newSTR_66.htm
PC, A., & PC, A. (2014). NZ Moisture Meters - Agricultural - New
Zealand. Moisturemeters.co.nz. Retrieved 25 May 2014, from
http://www.moisturemeters.co.nz/agriculture.asp#delmhorstsoil

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WWF,. (2014). Farming: Wasteful water use. Retrieved 25 May 2014, from
http://wwf.panda.org/what_we_do/footprint/agriculture/impacts/water_use/