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INFOSYS.110 BUSINESS SYSTEMS:

DELIVERABLE 2: BUSINESS SECTION
2014

Name Hyun Young (Jenny) Lee
NetID hlee731
Group Number: 251
Website Link: http://infosys1102014s1group251.blogspot.co.nz/
Tutorial Details
Tutor: Day: Time:
Kit-Wah Huang Wednesday 1pm
Time Spent on
Assignment:
18 hours Word Count: 1623

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BIKE AWARE
Introduction
As the population increases, the roads become more congested, therefore the roads should become
a safer place for all citizens to reduce the number of motor vehicle crashes. Motorcycle riders are 16
times more likely to be killed or injured than other drivers as stated in the report by the Ministry of
Transport (2013), because they are distinctively smaller and less protected on the road. A solution to
aid in the awareness and prevention of motorcyclist crashes is Bike Aware. A device installed onto
motor vehicles which receive detects the motorcyclists position from the motorcyclists device to the
motor vehicles device when it is within the range.
3. Business section
3.1 VISION
Creating a safer environment for motor vehicle drivers by raising awareness of motorcyclists on the
road using information technology as life is too high a cost to pay.
3.2 INDUSTRY ANALYSIS: ROAD SAFETY MOTORCYCLE DETECTION DEVICE INDUSTRY

Forces: High/Low: Justification:
Buyer power: Low There are not many suppliers for detection devices for
motorcycles to customers in the market. The few
numbers of firms would have the majority of the
market and as the customers would not have many
choices to choose from, the buyer power would be
low.
Supplier power: Low There are many suppliers for parts for the device,
software designers as there are many GPS companies

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on the market already. Some examples coule be
Bosch, Navman and Garmin. The businesses can select
their supplier, giving them low supplier power as they
can swtich anytime to another supplier to suit their
product or budget (Bosch, Navman and Garmin (n.d.)).
Threat of new entrants: High The use of satellite navigation and positioning
technology in the world is rapidly growing in
popularity and is a strategic emerging industry stated
by Hong (2013). As this industry is becoming more
attractive, more firms may start up in the future to
take advantage of this trend.
Threat of substitutes: Low For consumers there are not any substitutes for
motorcycle detection techonology available for them.
The only substitute is to manually check your
surroundings to personally detect the motorcycles and
vehicles.
Rivalry among existing
competitors:
Low There are a number of firms under the motorcycle
saftey device industry however, the functionalities are
all varied. The rivalry itself Is quite low.
Overall attractiveness of the industry: The attractiveness of this industry is high, with the right
innovative idea of a new tracking device, a first-mover competitive advantage can be made and
dominate the market share before other firms enter this industry as there is a bright future with
technology.
3.3 CUSTOMERS AND THEIR NEEDS
The target customers would be bus companies, large vehicle companies and the individual
motorists. Bus companies would be the first users of this device as they would allow a structured
trial of the product. As large vehicles have larger blind spots the motorcyclists are at higher risk
around them (New Zealand Transport Agency, 2009). They would need further assurance of the

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motorcyclists position around them. The final step would be to implement this device to all motor
vehicles as all drivers need to feel confident to drive on the road without any accidents as 60% of
crashes involved multiple vehicles between 2008 and 2012 on New Zealand roads. All the drivers on
the roads are affected and are the target customers, they need assurance of safety of all individuals
on the road.
3.4 THE PRODUCT AND SERVICE
The device would lead to a safer journey on the road. As all drivers will become more aware and
cautious while informed of their surroundings, this would sharpen up their senses and many
accidents can be prevented. The device can be trusted and with assurance of safety, the drivers
would be more confident travelling on the roads with other motorcycles and motor vehicles.
3.5 SUPPLIERS AND PARTNERS
Suppliers would include software designer companies, to design the software of the tracking device.
To make sure the product actually functions accurately. For example, the Australasian company
Navman, a GPS company could supply the gps tracking software as they specialise in the designing,
developing and manufacturing products. Another supplier could be a company whom makes parts
for the device. For example Bosch, who distriubte a wide range of parts to their customers and the
device can be assembled with the parts supplied by Bosch.
Partners would include the bus company and the large vehicle companies to aid in the introduction
of the device onto the roads. The bus companies that are managed by Auckland Transport would be
a good partner to start up the product distribution. The feedback could be a key performance
indicator to measure its success and activity on the road. Another partner could be a
telecommunication companies such as Vodafone or Telecom to integrate their mobile services with
this device to possibly offer this software to mobile devices in the future for expansion and
convenience.
3.6 STRATEGY: COST LEADERSHIP
Although Bike Aware is a new and innovative product to enter the market focusing on specific target
markets first, the vision is the expand to all the vehicles on the road to create a safer environment
for all, targeting a broader market. Furthermore, to encourage as many vehicles to implement this
new device, a high cost should be avoided which is why the core strategy for Bike Aware should be
cost leadership. The low cost would take away the burden and reluctancy to purchase the device.

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3.7 VALUE CHAIN ACTIVITY: MARKET AND SELL
The device requires technology and software design but the vision of this company is to increase
awareness and to promote road safety to all the drivers and motorcyclists. Therefore, the marketing
and selling the product is key. The device needs to become widespread so it achieves its goals in
promoting road safety. Advertising must successfully portray its beneficial functionalities and low
costs to attract all types customers, to gain interest in the broad market.


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3.8 BUSINESS PROCESSES
3.8.1. - Device marketing process
The key value chain activity is marketing and selling the product so to increase sales, appropriate
advertisements must be used. Management can use key performance indicators of the number of
sales before and after the marketing strategy can be used to judge its efficiency. If successful, the
source of advertising can be developed, for example there could be different versions of television
ads to promote the product and road safety. This strategy can continue the rising trend in sales until
it becomes outdated or ineffective.



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3.8.2. - Device Distributing Process
The distributing process occurs when the orders are placed. The inventory levels must be checked to
see if there is enough for the order. The devices stored in the warehouse after assembly are
managed by the inventory management system and if there is enough inventory, the logistics
department delivers the product to the customers. If there is a shortage, purchase requisitions must
be made for the resources and materials needed to assemble the product to ensure there is enough
inventory to meet customer demands.



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3.9 FUNCTIONALITIES
3.9.1. Device marketing process
Finding sources of advertisements (magazines, tv ads)
Receiving feedback from customers (on the product and advertisements)
3.9.2. Device Distributing Process
Transporting the product to the customers
Check amount of inventory on hand
3.10 SYSTEMS

3.10.1. - Inventory management system
Inventory management is essential in ensuring accuracy in numbers for the customers and
for efficient supply chain management, from assembling, storing to distributing. The product
is the main source of income therefore it is paramount to have a system to maintain the
inventory to meet the customers demands and to shorten the cycle time. The vision is
carried through their products to the drivers on the roads to encourage road safety.
3.10.2. - Customer feedback management system
Feedback from customers on the marketing strategy is key to improving the current
marketing process. The management system can gather information and help make
decisions on how to develop their current strategy to steer towards their goal of raising
motorcycle awareness to all drivers on the road. The feedback system could also be used for
the device itself, so that decisions can be made to develop the product to meet the needs
and wants of the customer and improve customer satisfaction.
3.10.3. - Delivery management system
After the order has been placed for the devices by the customers, the distribution process
begins. After the inventory has been checked and are ready the be sent, the delivery
management system is in place to ensure the right amount of inventory is delivered in full,

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on time and in spec to the correct customers location. This accuracy would impact the cycle
time as it could shorten the delivering time.

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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)


Market
and
Sell
1. Device
marketing
process
1. Find sources for advertisements

2. Gain feedback to improve marketing
strategy

- Customer feedback
management system
- Decision Support System
- Customer relationship
management
2. Device
distribution
process
1. Know and maintain accurate number of
inventory

2. Transport goods to the customer in full, on
time and in spec.

- Inventory management
system
- Delivery management
system
- Supply Chain
management
- Transaction processing
system

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Conclusion
With the current technology generation, the value of information systems and technology
are increasing. In the world of technology, the tracking device industry is expanding with
countless opportunities to create new products and services. It is necessary for businesses
to keep up to date with the trends to meet customers needs and wants while helping out
locally and possibly even globally. Bike Aware hopes to start to make beneficial changes
locally using information technology efficiently and save lives on the road and promote road
safety.
REFERENCES

- Bosch. (n.d.). Materials Management & Procurement. Bosch in New Zealand. Retrieved
from
http://www.bosch.co.nz/en/nz/our_company_3/purchasing___logistics_1/materials_m
anagement___procurement_1/materials_management___procurement_2.html
- Garmin. (n.d.). Garmin | New Zealand | Products | Automotive Products. Retrieved May
22, 2014, from http://www.garmin.com/nz/products/automotive-gps-products
- Hong, X. (2013). Satellite navigation services getting popular. China Economic Net.
Retrieved from http://en.ce.cn/Insight/201311/21/t20131121_1787715.shtml
- Ministry of Transport. (2013). Motorcyclists crash fact sheet [Statistical fact sheet].
Wellington: Author
- NAVMAN GPS MAPPING. (n.d.). GPS Maps / GPS Software. Retrieved from
http://www.navman.co.nz/car-gps-devices/mapping/
- New Zealand Transport Agency. (2009). About other road users. (n.d.). The official New
Zealand road code for motorcyclists. Retrieved from
http://www.nzta.govt.nz/resources/roadcode/motorcycle-road-code/about-other-road-
users/sharing-the-road-with-trucks-and-buses.html