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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Chelsea McCraith
NetID cmcc597
Group Number: 317
Website Link: http://infosys1102014fcgroup317.blogspot.co.nz
Tutorial Details
Tutor: Day: Time:
Helen Chen Tuesday 2pm
Time Spent on
Assignment:
18 hours Word Count: 1646

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INSTAWATER.
INTRODUCTION
The problem Instawater addresses is the decreasing quality of drinking water, beginning in
New Zealand. Instawater especially targets the water quality in rural and urban areas which
is becoming worse as land use intensifies.The water in our homes can contain nasty bacetria
such as E.coli and Cryptosporidium and when outbreaks of these bacteria occur, they can
not only put our health at risk but are also extremely costly for the government to repair.
Solution:

Our Solution (Instawater) is an information technology system which involves detecting the
bacteria present in water as it flows through to the tank. This information is then sent to the
database at the Ministry of Health which 1) helps them to easily identify levels of bacteria to
prevent outbreaks and 2) sends information back to the main treatment tank of the home
which determines which chemical and how much of that chemical should be released in the
tank to purify the water.



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3. BUSINESS SECTION
3.1 Vision
Provide the best water, 100% bacteria-free water, all day, everyday.
3.2 Industry Analysis: Water purification Industry
Industry: Water filtration Industry.
Force: High/Low: Justification:
Buyer power: Low Filters are almost a necessity for humans and
demand is far greater than supply. This is because
local councils only have the duty to purify their
local waters to a specific standard (usually done
with chlorine), so it is highly recommended to
filter the water further. (Pure Water Services,
2014)
Supplier power: Low The overall supplier power is low. There are
multiple supply sources from which businesses in
this industry could source their required
components. A quick search into google of water
filter components comes up with at least 15
different suppliers in New Zealand alone.
(Nzfilterwarehouse, 2014)
Threat of new entrants: High The entry barriers to this industry are relatively
low as a small amount of capital is required to
acquire components for a filter. Also, most filters
are sold online, a very easy way to set up a new

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business. (eway, 2013)
Threat of substitutes: High A report prepared by the Ministry of Health
indicates there are several other alternatives to
ensuring all bacteria is eliminated, other than
filters. This for example includes adding a second
storage tank, UV disinfection and Diatomaceous
earth filtration which are relatively easy to set up.
(Ministry of Health, 2007)
Rivalry among existing
competitors:
High There are multiple competitors within this
industry, including the big players such as Sue
Kelly water systems and Aqua Filter products who
both claim to have a unique point of difference.
(Pure Water Services, 2014)
Overall attractiveness of the industry: The overall attractiveness of the industry is good
based on the fact that demand is quite high. A business entering this industry will likely be
at low risk of falling out of business as water filtration is almost a necessity. Therefore
businesses in this industry will be sustainable.
3.3 Customers and Thei r Needs
Customers: Instawaterss customers are extreme health-conscious customers who are
willing to pay for a guarenteed benefit. The healthy, wealthy and fit as stated in a
harvard business review.
Needs: The Harvard Business Review also stipulates that relationships, self-directed analysis
tools and quality service are the three key needs of these types of customers. These are the
needs which Instawater addresses.


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3.4 The Product and Service
How Instawater addresses the above mentioned needs of our target market customers:
Quality service: The quality of the water which Instawater produces is much better than a
filter and is guarenteed to be 100% safe, every time. This meets the needs of the customers
in our target market, they choose high-quality water over the cost.
Self-directed analysis: As displayed in the solution section, a screen displaying treatment
used in the water and the bacteria present in the water allows customers to analyse exactly
what it is they are consuming and what bacteria is present in their water.
Relationships: The customers that we are targeting want involvement with whatever it is
they are investing in; they want a relationship with the product and/or its company.
Instawater is able to provide its customers with this desired relationship in that all new
information discovered in regards to chemicals etc is released directly to the customers.
Trust and thus a good relationship is developed between the customer and Instawater.

3.5 Suppliers and Partners
Supplier 1: NZ Chemical suppliers, in particular Envirolyte NZ who provide organic chemicals
specifically for water. This would be a supplier for Instawater as our system requires several,
high-quality chemicals (relevant to our vision the best water).
Supplier 2: IT software specialist. Instawater will require complicated systems in order to be
established and service from this supplier will be in great need for Instawater to begin the
crucial first step of designing and making the system.
Partner 1: Ministry of Health. This is a crucial partner as a lot of funding would be required.
Having the Government as a partner in order to implement InstaWater systems in New
Zealand
Partner 2: Water Safety NZ. This relates directly to our customers as our target market
would be the kind of people who are involved in these kinds of health groups.

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3.6 Strategy: Focused High Cost
The competitive scope: Narrow market (in first few years of operations). This is because our
vision clearly stipulates 100% bacteria free which would only appeal to a certain kind of
customer. Not everyone in NZ will be initially interested in this.
Cost strategy: High cost. This is so that enough revenue will be produced to cover the high
start-up costs and the installation costs of the system.
The overall strategy is therefore Focused High Cost
3.7 Value Chain Activity: Procurement
The most important value chain activity for this business is Procurement.
Why this is the most important value chain activity can be seen by looking at our vision and
strategy. Our vision is to provide the best water that is 100% bacteria-free. Our system
needs to live up to this high-quality status and this will be achieved by the components of
our system and the way they interract. Therefore, the sourcing of these components is of
extreme importance. Also, to be recognised by our narrow market and actually be able to be
sold for a premium price, Instawater needs to stand out and the high quality which is
advertised needs to actually work; the system would not be able to work to this high quality
without the procurement stage.







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3.8 Business Processes
3.8.1. QUALI TY TESTING PROCESS - This process is a critical stage in the procurement stage of
the value chain and also of great importance to Instawater. When our IT-based product is
released in the market place, the quality of the product must be extremely high to meet the
needs of our customers and keep sales level to a satisfactory level. As our strategy is
focused high-cost, the quality must be very good in order to satisfy our narrow market and
keep the cost of Instawater high. To achieve this high quality, all the options must be
investigated and the quality tested to produce the best quality product.

Start
Receive Raw
materials samples
Benchmark samples
against established
quality (also costs
and compatability)
standards
Do all samples meet
benchmark?
Remove samples
from decision
making process
Update system with
test results which
meet standards
End
No
Yes
Research & Development
Warehouse
Quality Checking System

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3.8.2. SUPPLIER SELECTION PROCESS As Instawater is focusing on a specific, narrow market,
(where the target market is very demanding of good-quality products that meet the KPI of
IFOTIS) supplier quality and reliability is of great importance. Therefore selecting suppliers
before beginning operations is vital for future success and to maintain the focused high-cost
strategy.
Start
Gather opinions
from target market
to establish criteria
for supplier
selection
Establish a list of
potential suppliers
based on the
criteria
Request raw
material samples
from suppliers
Does raw material match
customers criteria?
Remove supplier(s)
from potential
supplier list
Enter qualifying
suppliers into
system
Choose most
suitable supplier
End
No
Yes
Supplier selection system
Customer Service department
Warehouse
Customer suggestion capturing system



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3.9 Functionalities
3.9.1. QUALI TY TESTING PROCESS
Compare quality of various raw materials to established standards
Determine the most suitable raw materials for the business
3.9.2. SUPPLIER SELECTION PROCESS
Compare suppliers quality and reliability to customers preference
Choosing a supplier that will be the most effective and efficient
3.10 Systems

3.10. 1. QUALI TY CHECKING SYSTEM This system relates supports our vision directly and the
functionalities mentioned above. The best quality system is required in order to achieve our
vision of 100% bacteria free water. This system specifically supports the functionality of
determining the most suitable raw materials for Instawater as it is able to compare the
tested materials to the standards required.
3.10. 2. SUPPLIER SELECTI ON SYSTEM- Suppliers need to be reliable and their raw materials of
a high quality in order to satisfy our healthy and wealthy customers who expect Instawater
to deliver their vision. This system ensures that Instawater has the best supplier possible
which will not only support the functionality of choosing a supplier that will be the most
effective and efficient but also satisfy customers needs by achieving the vision.
3.10. 3. CUSTOMER SUGGESTION CAPTURING SYSTEM - This system is of extreme importance
in the initial stages of both business processes mentioned above. It specifically supports the
supplier selection process as it provides the functionality of allowing customers to enter
data into the system which gives Instawater insight into what their customers are looking
for.

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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)

Procurement
1. Quality
testing
process
1) Compare quality of various raw materials
to established standards
2) Determine the most suitable raw
materials for the business

Quality checking system


Decision Support System
2. Supplier
selection
process
1) Compare suppliers quality and reliability
to customers preference
2) Choosing a supplier that will be the most
effective and efficient
Customer suggestion
capturing system

Supplier selection system
Customer Relationship
management system

Supply Chain Management
System

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CONCLUSION
Instawater is the ideal IT-based idea that could solve the issue of bacteria contaminated
water, a common issue both natioanlly and internationally. When water flows through to
the treatment tank, the detector is used to send information to the external database which
determines which specific treatment is to be used to eliminate all bacteria. The use of IT in
this system not only provides for improved customer satisfaction of our target market but
also addresses an important issue in New Zealand, especially in rural areas.
REFERENCES


Ministry for the Environment. (2014). Fresh Water. Retrieved from
http://www.mfe.govt.nz/issues/water/water-quality.html

ESR Water Group Web Solutions. Frequently asked questions on managing New Zealand
drinking water. Retrieved from http://www.drinkingwater.esr.cri.nz/general/faq.asp

Ministry of Health. (2005). Appendix 2: Outbreaks of Water-borne disease in New Zealand.
Retrieved from http://www.mfe.govt.nz/publications/water/nes-drinking-water-section-32-
mar07/html/page8.html

Ministry of Health. (2013). Annual Report on Drinking-water Quality 20112012. Wellington:
Author. Retrieved from http://www.health.govt.nz/publication/annual-report-drinking-
water-quality-2011-2012

Eway. (2014) Want to know how to start an online business? Retrieved from
http://www.eway.co.nz/business-advice/how-to-start-an-online-business

The Institute of Environmental Science and Research Ltd. (2013). Annual Summary of
Outbreaks in New Zealand 2012. Porirua: Author. Retrieved from
https://surv.esr.cri.nz/PDF_surveillance/AnnualRpt/AnnualOutbreak/2012/2012OutbreakRp
t.pdf

Water New Zealand. (2014). Promoting and enabling the sustainable management and
development of the water environment. Retrieved from
https://www.waternz.org.nz/Category?Action=View&Category_id=184

Pure Water Services. (2014). Town Water- Where does the water in your tap come from?
Retrieved from http://www.purewaterservices.co.nz/about/water-information/origin-of-
town-water

Calkins, C., Sviokla, J. (December 2007). What Health Consumers Want. Harvard Business
Review, 85(12). 142-148. http://hbr.org/2007/12/what-health-consumers-want/ar/1