1

INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Callum Waters
NetID cwat274
Group Number: 219
Website Link: http://infosys1102014s1group219.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Kit-Wah Huang Wednesday 12pm
Time Spent on
Assignment:
25 hours Word Count: 1511

2


2
THE LIFE BELT BUSINESS
INTRODUCTION
In 2012, The U.S. Bureau of Labor Statistics recorded a fatality rate of 117.0 per 100,000
fulltime equivalent workers in the fishing industry. The notable frequency of deaths in the
industry came as a result of workers falling overboard and drowning without anyone
noticing their absence. To solve the problem, the group came up with a wearable EPIRB
(Emergency Position-Indicating Radio Beacon). This product is an elastic foam fitted around
the bicep or ankle that is worn on any marine workers. It is activated by pressure sensors
which recognise when the wearer is in the ocean. The band sends gps coordinates to the
boat which relays the information to the local marine base. This solution is designed to be a
cheaper and smarter EPIRB with the purpose of reducing fatalities in the fishing industry.
3. BUSINESS SECTION
3.1 Vision
To contribute to the safety of the people working and living in and around the water by
providing innovative and trustworthy technology.
3.2 Industry Analysis: New Zealand Marine Safety Industry
Industry: NZ Marine Safety Industry. This industries comprises of the businesses that offer
products for the purpose of the safety of people in the water. More specifically the branch
of EPIRB (Emergency Position-Indicating Radio Beacon) and PLB (Personal Locator Beacon).
Force: High/Low: Justification:
Buyer power: High Brands such as GME and ACR sell the product to
local retailers like FCO and Hunting and Fishing
giving more access and options to more people.

3


3
Supplier power: Low There are a number of suppliers which will be
accountable for ceratin components of the
products e.g. foam neoprene, GPS and electric
circuit boards. The largest component of the
product is obviously the radio system. There are
many radio manufacturers who offer similar
services and products reducing the power that
the supplier has.
Threat of new entrants: Low The entrance barrier for this industry is relatively
high. This is because new entrants will have to
develop their supply chain operations and
organise retailers and warehouses for their
products as well as the costs of marketing and
administration
Threat of substitutes: Low EPIRBs are relatively unparallel in substitutes.
The closest substitute of a distress signal would
be flare guns, smoke cannisters or flags which
have limited range. Hence the threat of
substitutes are low.
Rivalry among existing
competitors:
High Due to the cost, EPIRBs are of low demand which
means that there is a strong competition
between the brands ACR, GME and McMurdo to
gain dominance over the small market.
Overall attractiveness of the industry: The industry is not attractive due to the expense in
starting up and the competitveness. However the industry is more attractive if the company
can offer a product with a competitive advantage.

4


4
3.3 Customers and Thei r Needs
Our target market segment is fishery workers who are part of a commercial fishing
company. They tend to work long hours in extreme weather conditions and are
predominantly men aged between 18-35. Our customers want to be reassured that in an
event of an accident that they will be covered and looked out for. The companies that
purchase the product want a reliable and cheap system.
3.4 The Product and Service
Our product is cheaper because the system operates as a network sending signals to a single
main transmitter which contacts the marine base. As opposed to having a dozen separate
EPIRBs. The system is more reliable as the user can be unconsious and the device will still
detect that the user is in the water and transmit the data and potentially save the persons
life, giving them that reassurance that they need.
3.5 Suppliers and Partners
Our first supplier is Fujicell Techno Corporation who will be responsible for supplying
durable, reliable and long lasting batteries for the EPIRB. In addiiton the transmission
system will be supplied by Communication Systems Ltd who are specialist in radio and other
communication equipment. Our two partners are Maritime New Zealand and FCO.
Cooperation with these organisations is essential in promoting safety and as a retail outlet
to both business and customers.
3.6 Strategy: Cost Leadership
This business employs a low cost strategy. This is because the high price of EPIRBs deters
many customers from purchasing. By making it more affordable, the business can create a
competitive advantage as there would be a greater demand for the product at a lower price.
The product targets commercial and social fishers as well as leisure and sports activitists in
the water. Hence the product has a relatively broad competitive scope
The overall strategy is therefore Cost Leadership.

5


5
3.7 Value Chain Activity: Make the product or service
Making the product or service is generally an important activity in most businesses. It is a
key value chain activity in this business because the consumer relies a lot on the product so
it must be assured that the product is made with quality and is trustworth as stated in our
vision. Our strategy to reduce the costs of the EPIRB is fundamentally dependent on this
activity as the efficiency in production can reduce variable costs so that the product can be
sold at a cheaper price.
3.8 Business Processes
3.8.1. INVENTORY PROCESSING PROCESS- This process is responsible for managing the
amount of inventory held at the warehouse. The process is employed to assure efficiency in
the storage of the product and to improve inventory turnover. This is because too much
inventory incurs avoidable costs and not enough inventory wastes potential revenue. The
process uses a sales forcast and a margin of safety to calculate how much stock is needed. It
then contacts the suppliers and the manufacturing department so that the right amount of
stock is ready for next months sales.

6


6
START
Acquire Next
Months Sales
Forecast
Sales Analysts
Target Number =
Sales Forecast *
20%
Is Inventory >=
Target Number
No
Products Required =
Target Number -
Inventory
Suppliers
Contact Supplier for
the materials to
make required
amount
Manufacture
required amount of
products
Yes END
Manufacturing
Store stock in Warehouse


3.8.2. CUSTOMER RETURNS PROCESS Another key chain event is the service after sale. The
company assures its customers trust in the product and in the event that there is a fault
with the product the company has a process in place to keep the customer satisfied. The
primary objective is to serve the customer by providing a replacement or a reimbursement
for their purchase. The secondary objective is to fix the object or failing that destroy it.

7


7
REPLACE WITH BUSINESS PROCESS 2 MODEL
START
Customer returns a
Good (acquire
customer details)
Customer
Inspection: Is the
good faulty?
Return Item to
Customer
Reimburse
Customers Purchase
Yes - Reimbursement
No
Get Replacement
from Stock
Yes - Replacement
Record Stock Return
or Reimbursement
Accounting Department
Use customer
details to deliver
replacement
Can faulty product
be fixed?
Inventory
Delivery Team
END Satisfied Customer
Store in Inventory
(Record new stock)
Product Repair Team
Yes Destroy the Good No



8


8
3.9 Functionalities
3.9.1. INVENTORY PROCESSING PROCESS
Acquire sales forecast.
Create target number for next months sales.
Check current inventory.
Order the amount of stock to reach target number.
Check stock equals target number.
3.9.2. CUSTOMER RETURNS PROCESS
Check that good is faulty.
Replace or refund product (based on customers request).
Find out if product can be repaired.
Repair or destroy the good.
Record customer return.
3.10 Systems

3.10. 1. INVENTORY MANAGEMENT SYSTEM This system is responsible for the inventory
processing process which manages the amount of required inventory to the sales forecast.
This system is part of the supply chain management and makes sure that there is enough
stock to cover next months sales. It keeps record of where the inventory is stored, where it
has come from and where it is going. This is important part of making the product and
reduces the cost through increased efficiency.
3.10. 2. CUSTOMER RELATIONSHI P MANAGMENT SYSTEM This is a more broad system that
umbrellas over a set of sub-supporting systems and processes like customer returns,
complaints and queries. This is an important aspect in a company that is very customer-
based. The system manages the relationship with customers in order to improve the
product and service that it offers them.
3.10. 3. QUALI TY CONTROL SYSTEM This system operates throughout the entire
manufacturing process and manages the qulity of the product. The company assures a
trustworthy product to its customers and it is essential (life-saving) that this product can be
relied upon. Hence this rigourous system is implemented to check all the manufactered

9


9
products for faults and to test the durability of the product under different situations, so
that the quality of the product can be assured.

10


10
3.11. Summary Table: Value Chain to Systems

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

Make the
product or
service
1. Inventory
Processing
Process
1. Monterey jack cow macaroni cheese.

2. Rubber cheese lancashire edam rubber
cheese.
Inventory Management
System

Quallity Control System
Knowledge Mangement
System (Collaboration
System)

Supply Chain Management
2. Customer
returns
process
1. Replace or refund faulty goods to the
customer

2. Repair or destroy the faulty goods
Inventory System


Customer service system
Customer Relationship
Management System

11

11
CONCLUSION
This business will compete in the marine safety (EPIRB) industry by selling a reliable low cost
product to the commercial and social boaters. Many people avoid this equipment due to the
high cost. A product that can achieve lower costs will have access to a larger market. The
price is created through the efficiency in making the product achieved by information
systems that mange the processes involved. A strong customer relationship management
system will assure that customers need not worry about their product and any problems
that may arise with the product. By effectively implementing these systems and strategies
the company can become successful in offering its product and service to customers.
REFERENCES

1. Baltzan, P., Kathy, L., & Blakey, P. (2013). Business Driven Information Systems.
McGraw-Hill Australia Pty Limited
2. Bureau of Labour Statistics U.S. Department of Labor. (August 22, 2013). National
Census of Fatal Occupational Injuries in 2013. Retrieved from
http://www.bls.gov/news.release/pdf/cfoi.pdf
3. TradeBoss. (May 20, 2014). Fujicell Techno Corporation. Retrieved from
http://www.tradeboss.com/default.cgi/action/viewcompanies/companyid/164195/
4. FCO Fishing, Camping, Outdoors. (May 20, 2014). Emergency Position-Indicationg
Radio Beacon. Retrieved from http://www.fco.co.nz/online-
store/boating/safety/epirb.aspx?id=3103363
5. Wikipedia. (May 19, 2014). Distress radiobeacon. Retrieved from
http://en.wikipedia.org/wiki/Distress_radiobeacon