Name Matthew Brak NetID Mbra603 Group Number: 100 Website Link: http://infosys1102014fcgroup100.blogspot.co.nz/ Tutorial Details Tutor: Day: Time: Claris Chung Monday 12pm Time Spent on Assignment: 28 hours Word Count: 1648
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2 SOLAR SAVERS INTRODUCTION Pollution and climate change resulting from fossil fuels being our primary source of power worldwide has meant rising sea levels and more frequent natural disasters such as cyclones and droughts. By integrating the current solar panel model with the latest research and developments, we are able to create solar savers, a cheaper, more efficient photovoltaic product. This makes the switch to renewable power a more economically realistic option for New Zealand household and business owners, leading to a decrease in fossil fuels used throughout the country as we do our part to make the world a better place. 3. BUSINESS SECTION 3.1 Vision To reduce pollution and climate change globally by helping shape New Zealand into a worldwide leader in renewable energy sources through the supply of affordable, economical solar panels across the country. 3.2 Industry Analysis: Industry: New Zealand Photovoltaic Industry. This is the industry of generating electrical power by converting solar radiation into electricity. Force: High/Low: Justification: Buyer power: High The New Zealand market for photovoltaic systems is relatively competitive indicates buyer power is high since there are many solar panel businesses for customers to choose from. This is supported by there being a number of local distributors. (IT Power Australia, 2009)
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3 Supplier power: Low Supplier power is low as firms in the photovoltaic industry have many options as to who they buy from, as there are more than 100 cell manufacturers, 300 module manufacturers and 80 thin film manufacturers, meaning supply is beginning to outstrip demand. (IT Power Australia, 2009) Threat of new entrants: High There are low barriers to entry since the installing of photovoltaic systems only requires a registered electrician. Consequently, there have been 3 new entrants recently, showing the threat of new entrants is high. (IT Power Australia, 2009) Threat of substitutes: High There are many substitute products to photovoltaic systems that also create renewable energy such as hydro, geothermal and wind which generate two-thirds of New Zealands electricity. (New Zealand Trade and Enterprise, 2011). Rivalry among existing competitors: High PV distributors put the number of companies active in the implementation of solar PV systems as high as 200. Therefore, there is fierce competition in the photovoltaic industry, as they compete for market share. (IT Power Australia, 2009)
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4 Overall attractiveness of the industry: The industry is not attractive as rivalry is high and could increase further due to the threat of new entrants. In 2011, substitutes proved more attractive as two-thirds of New Zealands electricity was generated from hydro, geothermal and wind sources. (New Zealand Trade and Enterprise, 2011). Therefore, customers have many options, leading to an unattractive industry. 3.3 Customers and Thei r Needs Solar power appeals to many Kiwis wanting to save money and generate their own electricity. As a roof is required to install solar savers, our target group of customers are all business and home owners. Currently, most potential customers think that costs overshadow virtues of switching to solar, with two of these virtues being to help the environment and save money. Therefore, customers require an environmentally friendly solar system that is cheap and minimises money spent on power from the grid (Underhill, 2014). 3.4 The Product and Service By integrating the current photovoltaic system with the recently developed, readily available tungsten-based absorber, we can create a product that absorbs sunlight and transforms it into power with an efficiency rating of 80% compared to the average 35% we see today (Whitwam, 2013). This increased efficiency means more solar power is generated from the same level of sunlight, leading to a decrease in money spent on power from the grid which is what consumers wanted. Due to the high availability of cheap tungsten material, we can reduce costs and pass these savings on to consumers in the form of lower prices. This overcomes the primary obstacle keeping household owners and businesses from investing in solar panels, while maintaining its environmentally friendly appeal. 3.5 Suppliers and Partners A partner of ours would be an organisation that promotes the use of solar power and educates people about the benefits, such as Solar Action - the New Zealand Renewable Energy Society Incorporated. They can achieve their goal as solar power can now be promoted as a cheaper alternative to power from the grid, while helping us by advertising
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5 our product. Another partner would be tungsten based absorber developers, as we create a new market for their product, and they supply us with the material that reduces our costs and increases our products efficiency. One of our suppliers would be a cell manufacturer such as Suntech, as cells are a necessary component of a solar saver, as it allows them to absorb sunlight. Another supplier would be a WiFi provider such as telecom, allowing us to communicate solar saver performance data to us so key performance indicators can be measured. 3.6 Strategy: Cost Leadership Solar Savers are a low cost good relative to other solar panels on the market because we are using a tungsten based absorber. This material is cheap and readily available, decreasing our costs of production compared to other solar panel systems (Science Daily, 2013). Our market is broad as we are targeting all home owners and businesses with roofs, covering the whole photovoltaic market. A wider range of households and businesses will now consider buying a photovoltaic system due to the lower costs. The overall strategy is therefore cost leadership. 3.7 Value Chain Activity: Technology development (and R&D) The most important value chain activity for this business is technology development and R&D. The key for our business to gain a competitive advantage in the photovoltaic market is through our low cost, but very efficient product. We are able to deliver this value by researching how to integrate the tungsten based absorber into a photovoltaic system and then developing this model, allowing us to offer a more affordable and economical product to households and businesses throughout New Zealand. 3.8 Business Processes 3.8.1. PRODUCT DESI GN AND DEVELOPMENT PROCESS This is the process of incorporating the new materials (tungsten based absorbers) into a regular solar panel to improve
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6 efficiency and reduce cost. A computerised design will be drawn and then a model made based on this. The prototype must then be tested to see if it is operating at the planned efficiency, and if not, the process must be repeated. The design and development process creates our competitive advantage allowing us to achieve our vision, and is therefore one of the most important processes carried out.
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7 3.8.2. PRODUCT PERFORMANCE RESEARCH AND I MPROVEMENT PROCESS This is the process of obtaining information about the performance of solar savers throughout the country, and comparing this collected data to benchmarked figures for efficiency. If the results are not desirable, solutions must be found and implemented in order to make improvements to the efficiency of solar savers, enabling us to work towards our vision. This process is important to the business because it allows us to constantly try to increase our competitive advantage. 3.9 Functionalities
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8 3.9.1. PRODUCT DESI GN AND DEVELOPMENT PROCESS Analyse the prototype test data Generate a computerised design of the product 3.9.2. PRODUCT PERFORMANCE RESEARCH AND I MPROVEMENT PROCESS Acknowledge that all data has been received over WiFi Analyse the feedback data 3.10 Systems
3.10. 1. PRODUCT DESI GN SYSTEM Our product design system involves computer software being used to support decisions made by our design department as they develop an electronic model of the prototype. The computer-generated design formed from the implementation of this system is the key to the competitive advantage we aim to create. This happens since it uses the new materials necessary to reduce costs, therefore contributing towards our vision of supplying affordable and efficient solar panels. 10. 2. PROTOTYPE TESTING SYSTEM The prototype testing system is in place to ensure the product works and to measure the efficiency of the solar saver. This data is then processed and compared with planned efficiencies from the computer-generated design, allowing managers to make the decision about whether or not they should begin commercial production of the product. This system is important because if it wasnt in place and efficiency levels were not as high as planned, we would begin producing products that were not as economical, preventing us from achieving our vision. 3.10. 3. DATA VI SUALI SATION SYSTEM - A data visualisation system assists employees with analysis of the efficiency data of solar savers throughout the country as it provides them with a visual display that is easier to understand. This helps them identify whether solar savers are meeting benchmarked efficiencies. If they arent, this information can be passed on to managers who can take action to improve performance. This system is important to our vision, as without it, problems and irregularities in efficiencies would not be identified and the quantity of renewable energy produced throughout the country could decrease.
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9 3.11. Summary Table: Value Chain to Systems
Value Chain Activity Processes Functionalities Specific Information System(s) Broad Information System(s)
Technology development (and R&D) 1. Product design and developme nt process 1. Generate a computerised design of the product
2. Analyse the prototype test data Product design system
Prototype testing system Decisional support system
Decisional support system 1. Product performanc e research and improveme nt process 1. Analyse the feedback data
2. Acknowledge that all data has been received over WiFi
Data visualisation system
Decisional support system
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10 CONCLUSION Our business integrates solar panels with the latest technology to develop a cheaper, more efficient and economical product in the photovoltaic industry which meets customers needs. With processes in place to enable the research and development of our product, and information systems and technology being used to support these processes, we are able to create value and therefore establish a competitive advantage. As this competitive advantage appeals to consumers, we hope to increase the use of solar power across the country, and help shape New Zealand into a worldwide leader in renewable energy sources.
REFERENCES
1. IT Power Australia (2009). Assessment of the Future Costs and Performance of Solar Photovoltaic Technologies in New Zealand. Retrieved from http://www.fivepower.co.nz/uploads/64136/files/PV_in_New_Zealand.pdf
2. New Zealand Trade and Enterprise (2011). The New Zealand Energy Sector. Retrieved from http://www.nzte.govt.nz/media/344115/the_new_zealand_energy_sector_report_fi nal.pdf
3. Underhill, M. (2014). Mike Underhill: Costs overshadow virtues of switching to solar. Retrieved from http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11215250
4. Whitwam, R. (2013). New nano-material could boost solar panel efficiency as high as 80%. Retrieved from http://www.extremetech.com/extreme/168811-new-nano- material-could-boost-solar-panel-efficiency-as-high-as-80 5. Science Daily (2013). Breakthrough in Heat-Resistant Materials May Give Huge Boost to Solar Panels. Retrieved from http://www.libertyglobe.com/2013/10/16/breakthrough-in-heat-resistant- materials-may-give-huge-boost-to-solar-panels/