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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Yong geun Lee
NetID Ylee945
Group Number: 130
Website Link: http://infosys110groupxxx.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Helen Chen Tuesday 1pm
Time Spent on
Assignment:
16 hours Word Count: 1525

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T-CHECKOUT
INTRODUCTION
More and more people are now using supermarkets such as Countdown and Warehouse. However, the problem is the waiting time. This can
irritate customers waiting in the que to pay for the products. To reduce waiting time, Countdown implemented self-checkout, but it could not
solve the problem perfectly. T-checkout (T stands for timeless) is the best solution for the problem. T-checkout is the combination of EFTPOS
and bar-code reader with a small monitor implemented on the cart which displays scanned products and prices of them. Thus, customers can
scan products as they shop in the mall and pay right away wherever and whenever.
3. BUSINESS SECTION
3.1 Vision
Put ourselves in customers shoes and realize what customers pursue.





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3.2 Industry Analysis: Supermarket electronic payment industry
Industry: Supermarket electronic payment industry
Force: High/Low: Justification:
Buyer power: High Buyer power is high because many alternative
chocies are given to buyers (Supermarket
owners). Self-checkout system can be one of
them. This payment system is already
implemented in many supermarkets. As a one of
traditional method, cashier-staffed checkout can
be another alternative. Due to technology
advancement, customers even can implement
internet shopping system. (e-shopping). Many
substitues are given to customers which means
buyer power is high.
Supplier power: Low There are many suppliers who produces
components of the solution. Carts, monitors and

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EFTPOS are produced from various suppliers. Also
there are many banks which can support financial
transaction system. From this point, supplier
power is relatively low.
Threat of new entrants: Low There are relatively high barriers to entrance in
electronic payment industry. Firstly, very
advanced and high techonology is required to
start the business in the industry which means
relatively big amount of money investment is
needed. Also, it is not easy to set-up like other
businesses because the business needs to be
recognised by supermarkets. There will not be a
chance for supermarkets to contact the business
first, so getting trust and good cognition will be
another mission. Thus, threat of new entrants is
low
Threat of substitutes: High Threat of substitutes is relatively high because my

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solution was not the only option that
supermarkets can choose. Internet shopping is
well-known strategy to save time for shopping.
Internet shopping is getting more popular.
According to Time(2013) based on the sales
figures, consumers are increasingly content to
turn to the web judging by survey data and
heaping anecdotal evidence. Some customers
also do not want to use cards for payments, but
prefer to use cash. As technology advances day
by day, there is a high chance that new
substitutes will be invented.

Rivalry among existing
competitors:
High If other businesses in the industry produces
better payment method, customers will
substitute the service since customers will choose
more convinient and efficient payment method.
To keep up with other rivals, consistent reasearch

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and development is essential.
Overall attractiveness of the industry: Supermarket electronic payment industry is attractive overall. Although buyer power, threat of
substitues and rivalry among existing competitors are pretty high, the trends show that more people are choosing to pay electronically.
According to Dovetail(2012), Business and consumers are moving away from cash and paper payments at a slow but steady rate, and are now
migrating to electronic payment mechanisms. During the period from 2006-2009, checks paid dropped from 30.5 billion to 24.5 billion, debit
card transactions, which are replacing checks and cash, increased from 25 billion to 37.9 billion.
3.3 Customers and Thei r Needs
The target group of customers are supermarkets, such as Countdown and Warehouse. Supermarkets need to maximise their shoppers
satisfaction by getting rid of inconvinient factors and providing what shopper want and this will lead to increase in sales. Reducing/Eliminating
waiting for payment can increase shoppers satisfaction dramatically which is the goal of supermarkets. This waiting time can irritate not just
shoppers but also Supermarkets. Long queue can take huge space which could be used efficiently in different purposes. Also, the queue can
bother other shoppers because the queue can block their way to get products. Apart from the shoppers, supermarket would be really
beneficial if they could reduce labour cost. It would be their one of the important need. Reducing labour cost is the common goal of all
businesses.
3.4 The Product and Service
T-checkout can satisfy the needs mentioned above. It will enable shoppers to pay right away from their location which means they do not need
to queue.

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The Tesco(2010) explains that at Tesco, which has 6,000 self-service checkouts in its 1,200 stores, the average wait for a staffed till lengthened
from 5min 15sec in 2008 to 5min 42sec this year. Sainsburys saw a smaller rise, from 5 min 30sec to 5min 35sec.
Although supermarkets adopted new technology named self-checkout, it was not efficient as much as it was expected to be. Also, the self-
checkout could not satisfy all aspects of supermarkets needs. However, T-checkout service can reduce the waiting time for checkout
significantly. According to Irysis(2012), this will lead to increase shoppers satisfaction as shopping gets more convenient and time efficient
which can results increase in sales. Also, due to the reduced queue, supermarket can utilise spare spaces in better purposes. Taking shorter
time to shop and pay will reduce the length of shopping cycle, in other words capacity of supermarket will increase, too. Furthermore, cashiers
will not be required and this will lead to deduction in labour cost dramatically.

3.5 Suppliers and Partners
Supplier 1. EFTPOS supplier
EFTPOS device is one of key component of t-checkout. To make this product avaialable, EFTPOS is necessary. It can be either bought or leased
from suppliers, such as, EFTPOS warehouse.
Supplier 2. Bar-code reader supplier
Bar-code reader is another key component of t-checkout. As the t-checkout should have the fucntion to read bar-code, bar-code scanners
must be supplied. Eg. R.A.C.E services Ltd.

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Partner 1. Bank
To handle financial transactional process, there should be partnership with various banks.
e.g. ANZ and ASB
Partner 2.
3.6 Strategy: Differentiation Focus
T-chekout will be focused on narrow target, just supermarkets. Althought there are many different supermarket firms, only supermarket
industry will be targeted, because convience store and department stores will not let shoppers to use carts. Cost will be relatively high as the
t-chekcout requires advanced techonology.
The overall strategy is therefore Differentiation Focus
3.7 Value Chain Activity: Research and Development
The most important value chain activity for this business is research and development. As our vision is pursuit of what customer needs and
realize it. Consistent reasearch and survey on customers needs and development of better products based on the research is the key value
chain activity. For example, t-checkout was the output of combination of constant research development, thus value could be created.

3.8 Business Processes

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There are many different business processes used. I will show two key business processes with the diagram to easily explain about the
processes.

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Start
Read the bar-
code
Send the bar-
code number to
database
Recognise the
product
Send the
information back to
monitor
Display the
information
End


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3.8.1. BAR-CODE RECOGNITI ON PROCESS Bar-code recogntion process is one of the key process which plays a important role in the solution.
Main advantage of my solutions is mobile bar-code scanner, so shoppers do not have to queue. This process shortens the waiting line to
checkout efficiently and improves the business performance.

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Start
View shopping
cart
Checkout
Collect Billing
information
Payment approved
End
Update or delete
items in cart
Yes
No
Edit items in cart?


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3.8.2. TRANSACTI ON PROCESS Transaction process plays a crucial role in the solution because this is where actually money is collected. This
process checks is also conducted wherever the shopper wants to conduct, so eliminates waiting time to check-out.
3.9 Functionalities
3.9.1. BAR-CODE RECOGNITI ON PROCESS
Scan and recognise bar-code
Add to electronic cart what shoppers chose to purchase from any location
3.9.2. TRANSACTI ON PROCESS
Can understand what shoppers want to purchase
Payment process is done from any location.
3.10 Systems

3.10. 1. PRODUCT COLLECTI ON SYSTEM Integrates all of the scanned products and displays those products with the price on the monitor. This
system enables shoppers what they are about to pay and how much they are about to pay.
3.10. 2. BAR-CODE SCANNING SYSTEM This system scans the bar-code and finds out which product that bar-code is. This system reduces the
time spent on payment dramatically and shortens shopping cycle.
3.10. 2. PAYMENT CHECKI NG SYSTEM This systems is very fundamental, but very crucial. This enables to check if shopper has sufficient money
to pay for products and transfer money to shoppers account to supermarkets account.
3.11. Summary Table: Value Chain to Systems

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

Bavarian
bergkase
fromage
queso
1. Bar-code
recognition
process
1. Scan and recognise the bar-code

2. Add to electronic cart what shoppers
chose to purchase
Bar-code scanning system

Product collection system
Transaction processing
system

Enterprise Resource
Planning cheese system
2. Transaction
process
3. Can understand what shoppers want to
purchase

4. Payment approved. Money transferred
from shopper to supermarket
Product analysis system


Payment checking system
Customer relationship
system

Transaction processing
system

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CONCLUSION
To sum up, t-checkout is efficient product which can satisfy shoppers and supermarkets at
the same time by eliminating waiting time for checkout. Satisfaction of shoppers, which
directly affects sales of supermarkets, will increase as they can save their time.
Supermarkets can create great value by adopting t-checkout as more spaces will be made,
labour cost will be deducted and sales will increase.
REFERENCES

1. IBM Self checkout systme, IBM(20
Retrieved from http://www-
03.ibm.com/products/retail/products/self/sco/index.htm

2. Self-service checkouts have not cut supermarket queues, The Telegraph(2010)
Retrieved from
http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/7957800/Self-
service-checkouts-have-not-cut-supermarket-queues.html
3. The rising tide of US electronic payments, Dovetail(20120)
Retrieved from
http://www.dovetailsystems.com/pdfs/DovetailWhitepaper_RisingTideOfUSElectron
icPayments.pdf
4. Online Shopping: More Popular (Yet Less Satisfying) Than Ever, Time(2013)
Retrieved from http://business.time.com/2013/01/03/online-shopping-more-popular-yet-
less-satisfying-than-ever/
5. The great queue method debate: self-service checkout vs staffed, Irisys(2012)
Retrieved from http://www.irisys.co.uk/blog/?Tag=supermarket+queueing+times