1

INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Charlotte Stone
NetID csto660
Group Number: 517
Website Link: http://infosys1102014s1group517.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Yvonne Hong Wednesday 11am
Time Spent on
Assignment:
20 hours Word Count: 1533

2


2

INTRODUCTION
Not only are obesity rates in New Zealand worryingly high, but are also steadily increasing,
and are a huge concern to us all. Caused by the wide spread avalibility of junk food and our
countries obesogenic life style, the statistics around the issue make it clear that this is not a
problem we can ignore. In 2013, 31% of New Zealand adults were obese, with a further 34%
overweight. (Ministry of Health NZ, 2013)
My solution to this problem is a series of checkpoints that are placed around bush walks,
parks and other public areas. As they reach each checkpoint, users scan their wrist band. By
reaching the scanners, points are awarded and data are collected. The user can check their
data online through the website or app which will display their points and information on
how far they have walked, estimated calories burnt etc. In order to make the exercise even
more rewarding, points can be redeemed for prizes.
3. BUSINESS SECTION
3.1 Vision
To provide a product that enables a greater sense of achievement in fitness which propels
Kiwis into good health.
3.2 Industry Analysis: Fitness Tracking Industry
My industry is the fitness tracking industry. This industry is centered around devices which
track fitness levels.
Force: High/Low: Justification:
Buyer power: High High The buying power of this industry is high
firstly because there are many variations of
fitness tracking technology on the market today
and so the customer could easily switch to

3


3
alternative suppliers. Many of these products are
available for free as apps which gives buyers a
huge amount of power and creates difficulty in
trying to gain profit from the product (Thorin
Klosowski, 2013).
Supplier power: Low
Supplier power is low because the materials
needed to create the technology are very
common and the product is not easy to
distinguish (Jim Riley, 2012).
Threat of new entrants: High
Threat of new entrants is high as there are few
barriers to entry as it is relatively cost efficient to
start up a form of fitness tracking (Jim Riley,
2012).
Threat of substitutes: Low
There are already other alternatives to the online
fitness tracking industry. One example of which is
the stepometer. Despite this, being in a
technological age, manual exercise tracking
devices cannot compete with the accuracy and
features that an online fitness tracker can (Ben
Taylor, 2014).

Rivalry among existing
competitors:
High Rivalry among existing competitors is high as
there are so many similar products on the market
(Thorin Klosowski, 2013).
Overall attractiveness of the industry: I think this industry is not very attractive due to its
high buying power, high threat of new entrants and high rivalry among existing competitors.
Due to these factors (high buyer power in particular) trying to make a significant profit
would be very difficult. Also trying to distinguish a product in this industry from the rest
would be very difficult.

4


4
3.3 Customers and Thei r Needs
My customers are the District Health Boards of New Zealand. These District health boards
(DHBs) are responsible for providing or funding the provision of health services in their
district. Although the end users of my product are the general public of NZ, who obesity is
affecting, the product would be purchased by DHBs and payment for its services would
also come directly from them.
The New Zealand Public Health and Disability Act 2000 clearly outlined the objectives of my
customers, the DBHs of NZ. In order to provide a product which is desirable to the
customers, I have based my product around the success of improving, promoting and
protecting the health of people and communities (Ministry of Health, 2014).
3.4 The Product and Service
My product will meet my customers needs as it will follow the objectives of the DHB. Firstly,
it will improve the health of New Zealanders by providing a product which encourages them
to get active and therefore improve their general wellbeing. Good health will be promoted
by the sponsorship and collaboration of local business. Finally, good health will be
protected by the encouragement to keep active and live a lifestyle that is much more health
conscious
3.5 Suppliers and Partners
Suppliers include Ascent and Apple. Ascent, an NZ based company imports IT materials that
will be necessary for the creation of the wristbands and check point scanning system. Apple
will supply my company with a means of distributing part of my service, which is the app.
The potential partners my company will have are Intranel and Stirling Sports. Intranel, a
Christchurch software company will help to develop the actual software used for my
product. Another potential partner, Stirling Sports, could be just one of the local business
that will sponsor prizes. Local business will be key to the success of the product as they will
provide cost effective and community orientated prizes for users to purchase with their
points.

5


5

3.6 Strategy: Focused cost leadershi p strategy
Focused cost leadership strategy.
I am going to follow a focused, cost leadership strategy. Because the product is aimed at a
niche market (DHBs of NZ), a focused strategy would be the most beneficial choice.
There are two reasons why cost leadership would be an appropriate strategy for this
product. Firstly, as previously stated, buyer power in this industry is high and so it would be
easy for the customer to purchase a similar but less expensive product. Secondly, due to
obesity not being in the 2013/14 health targets from the DHB, less funding will be going
towards tackling this issue (District Health Board, 2013).
The overall strategy is therefore Focused cost leadership strategy.
3.7 Value Chain Activity: Service after Sale
The most important value chain activity for this business is providing service after sale.
Because the product needs constant maintenance, service after sale is key to the success of
the product. Some of the parts of the product/service that provide the user with a greater
sense of achievement in fitness can only occur through service after sale. For example, the
delivery of prizes.

3.8 Business Processes
3.8.1. SALES MANAGEMENT PROCESS - The sales management process has been put in place
to control the receiving, ordering and delivering of the prizes chosen online. This process is
highly important as the delivery of prizes is what makes this product unique. In receiving a
reward for exercising with our product, New Zealanders are far more likely to continue using
it and consequently stay fitter, healthier and lower obesity rates.


6


6







7


7


3.8.2. DATA MANAGEMENT PROCESS - The data management process is also a key process for
the company. The product is, at its most basic level, a fitness tracking device and so without
the capture of data the product would be useless. This is why its vital to have a sufficient
data management process to make sure the data is stored and kept sufficiently.







8


8
3.9 Functionalities
3.9.1. DATA MANAGEMENT PROCESS
Storing of data.
Transferring of data.

3.9.2. SALES MANAGEMENT PROCESS
Order postage.
Inventory checking.
3.10 Systems

3.10. 1. ORDER PROCESSI NG SYSTEM
The order processing system allows the company to efficiently and effectively sort through
orders so that prizes can be delivered hastily. This is very important for the achievement of
our vision as the prizes are a key part in delivering a strong sense of achievement to the
users of our product. Without a good order processing system, the sense of acheivment
would be lost.
3.10. 2. INVENTORY MANAGEMENT SYSTEM - The Inventory Management System is also vital
for the smooth running of the company. This system manages the inventory of prizes to
make sure there is never too many or too few in storage at one time. When the system runs
low or out of a specific prize it automatically sends a request for more. This, like the Order
Processing System, has to work efficiently to allow users to be rewarded.
3.10. 3. DATA CAPTURING SYSTEM The product is essentially used to track the progress of its
users, which makes Data Capturing System an extremely important one. In order to display
the data to the user, it first has to be captured. In order to provide a greater sense of
achievement in fitness, which will in turn propel kiwis into excellent health, the product
must be able to display its users achievements.



9


9
3.11. Summary Table: Value Chain to Systems




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

Bavarian
bergkase
fromage
queso
1. DATA
MANAGEMENT
PROCESS
1. Storing of data.

2. Transferring of data.


Data capturing
system.

Data capturing
system.
Customer
relationship
management.

Customer
relationship
management.

2. SALES
MANAGEMENT
PROCESS
1. Order postage.

2. Inventory checking.


Order processing
system

Inventory
management
system.
Enterprise
resource planning
system.

Enterprise
resource planning
system.

10

10
CONCLUSION
My product is an excellent way of bringing clear goals and motivating rewards to New
Zealanders in an attempt to heavily reduce obesity in our country. In order for my product
to be successful, IS and IT must play a strong part. My product relies on the use of IS to
make tasks efficient and affordable; without IS costs would be high and the business would
operate at a far slower pace. As a technology centered product, IT is vital for not only its
creation but also for the company to support it.
REFERENCES


1. Obesity key facts and statistics. (n.d.). Ministry of Health NZ. Retrieved May 25,
2014, from http://www.health.govt.nz/our-work/diseases-and-
conditions/obesity/obesity-key-facts-and-statistics
2. District health boards. (n.d.). Ministry of Health NZ. Retrieved May 25, 2014, from
http://www.health.govt.nz/new-zealand-health-system/key-health-sector-
organisations-and-people/district-health-boards
3. Klosowski, T. (2013, December 13). The Best Fitness Tracking Apps for Every Type of
Exercise. Lifehacker. Retrieved May 25, 2014, from http://lifehacker.com/the-best-
fitness-tracking-apps-for-every-type-of-exerci-1482693352
4. New Zealand Computer Hardware and Software Online Shop : Ascent Technology.
(n.d.). New Zealand Computer Hardware and Software Online Shop : Ascent
Technology. Retrieved May 25, 2014, from http://www.ascent.co.nz/
5. Obesity key facts and statistics. (n.d.). Ministry of Health NZ. Retrieved May 25,
2014, from http://www.health.govt.nz/our-work/diseases-and-
conditions/obesity/obesity-key-facts-and-statistics
6. Riely, J. (n.d.). Porter's Five Forces Model: analysing industry structure. Porter's Five
Forces Model: analysing industry structure. Retrieved May 22, 2014, from
http://www.tutor2u.net/business/strategy/porter_five_forces.htm
7. Taylor, B. (n.d.). 26 Fitness Trackers Ranked from Worst to First. Time. Retrieved May
25, 2014, from http://time.com/516/26-fitness-trackers-ranked-from-worst-to-first/