Name Rachel Miller NetID rmil379 Group Number: 371 Website Link: Tutorial Details Tutor: Day: Time: Kit-Whah Monday 10am Time Spent on Assignment: 30 hours Word Count: 1615
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2 LOUD AND CLEAR INTRODUCTION Ocean waves, the summer breeze or your childs laughter, all of these sounds would be impossible to enjoy if it were not for the ability to hear. However, it is an unfortuante reality for approximately 700 000 New Zealanders who suffer from hearing loss (National Foundation for the Deaf, 2014). According to a report by Thorne et al. (2008), it is estimated that in New Zealand between 30% and 50% of the prevalence of hearing loss in adults can be attributed to noise exposure during a lifetime. This can be changed; careful monitoring can control noise induced hearing loss (NIHL), and this product, a wearable decibel monitor, will provide adaquate warning in order to prevent NIHL. The technology will aim remove the unessary social and personal burden that is preventable hearing loss. 3. BUSINESS SECTION 3.1 Vision To provide the most user friendly warning system to prevent occupational hearing loss to improve the quality of life for hundreds of thousands of people. 3.2 Industry Analysis: Hearing Aid Industry Hearing Aid Industry. The global market for hearing aids and related auditory equipment, this is the closest approximation of the products industry. Force: High/Low: Justification: Buyer power: High Acoording to the New Zealand Audiological Society (2014) there are over 300 types of hearing aids to choose from. Buyers have a lot of choice in the brand, type and cost of their hearing aids.
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3 Supplier power: High The big six hearing aid manufacturers accounted for 98% of the world market last year (Kirkwood, 2013). Suppliers have firm control over the industry. Also, due to the complex nature of the product, these suppliers are absolutely nessesary. Threat of new entrants: Low Hearing aids and related technololgy are costly to develop and require rigorous testing to ensure their upmost quality. (Hearing Matters, 2012). Threat of substitutes: Low There are no products on the market that can serve as a replacement to hearing aids, cochlear implants, or products which measure sound in the surrounding enviroment. There is no substitute available for medical grade hearing equipment (University of Maryland Medical Centre, 2014). Rivalry among existing competitors: High The top six manufactures have a market share range of 9% to 24%. Each firms share in the total sales is constanly changing, which indicates competition between existing firms (Kirkwood, 2013). Overall attractiveness of the industry: The medical auditority equipment industry requires a great deal of capital to enter and there is well established competeition. However, once in the industry, there are no working substitutes on the market and very few new entrants. An expected stable 4-5% growth over 2013 in the multibillion dollar industry means that there is opportunity to be successful (Kirkwood, 2013). For these positive aspects, the hearing aid industry is considerably attractive and lucrative.
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4 3.3 Customers and Thei r Needs In New Zealand over 50% of all new ACC hearing related claims are classified as NIHL, according to a report by Thorne P. (2006). The products target group of customers are those whose occupations can be hazardous to auditory health, and may eventually lead to hearing loss. A presentation for the World Health Organisation stated that estimates of the number of people affected worldwide by hearing loss increased from 120 million in 1995 (WHO, 1999; WHO, 2001) to 250 million worldwide in 2004 (Smith, 2004). There is a need for a solution to lessen the impact and burden of preventable hearing loss. The product satisfies the need by approaching the core of the issue: exposure to loud noise. 3.4 The Product and Service The product is useful in preventing NIHL. Long term exposure to noise above 85 decibels can cause permanent hearing damage (National Foundation for the Deaf, 2014). Since the device is similar to a watch in design, users will not be hassled with large equipment. When the user is alerted by the device when potentially damaging levels are present, he can take cautionary action. This can include proper ear protection or inspection of the source of the noise. The device will bring awareness to a persons surroundings so that symptoms of NIHL and the damaging noise can be treated immediately. 3.5 Suppliers and Partners The products first supplier would be Bernafon, a hearing aid manufacturer. Bermafon is a leader in the development of medical auditory equipment . Their vision, as stated on the company website is essentially to improve the quality of life for those who have hearing loss, and with their advanced technology, they are a perfect fit for the product (Bernafon, 2014). A second supplier would be Wellington based graphics and website design agency Inject. Contacting out the brand design and website creation to a third party will allow the company to focus on the product itself. Since Inject works with a variety of clients both locally and internationally (Inject, 2014), the products website will have the capacity expand globally.
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5 A beneficial first partner would be the Hearing Association (Auckland) Inc and their Hearing Auckland Official website. As idenified on their website, The Hearing Associtaion (Auckland) values both raising awarness in young people about hearing loss caused by exposure as well as protecting hearing loss in the home and the workplace (Hearing Auckland, 2014). They could bring the product directly to the target market, because the Hearing Association (Auckland) Inc has direct channels for online pruchases of hearing aids and related goods. A second partner would be National Foundation for the Deaf. This not for profit New Zealand organisation states, we encourage all New Zealanders to protect and preserve their hearing, (National Foundation for the Deaf, 2014). They align with the products vision and would serve to promote the product as a preventative solution to widespread NIHL. 3.6 Strategy: Broad Market Differntiation The hearing loss prevention and treatment market is a multibillion dollar industry (Kirkwood, 2013). According to the National Foundation for the Deaf (2014), 1 in 6 New Zealanders suffers from hearing loss. The product is also expensive to develop and test, as it needs to meet specific requirements as set out by various health and safety regulations (Hearing Matters, 2012). Due to a broad market scope and high cost, the best of Porters Generic Straties is broad market differentiation. The overall strategy is therefore Broad Market Differntiation. 3.7 Value Chain Activity: The most important value chain activity for this business is Service after Sale. The vision of the product is to improve the quality of life for those that suffer from hearing loss and help to prevent others from becoming disabled. Without easy to use, reliable technology and consumer support from the compay, the vison would be impossible to achive. Also, in order to improve the device, substancial money is spent in ensuring the product meets consumer requirements as set out in surveys. This supports the strategy the product will ulitize; broad market differentiation. Customer research is crutial to the products success and would not be possible with out Service after Sale.
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6 3.8 Information Delivery Process 3.8.1. INFORMATI ON DELI VERY PROCESS In order to ensure that users of this product are up to date with relevent information regarding their product and its functions, a process is required to deliver this information in an effective manner. This system must also address customers individually. This supports the vision by having an impact on the users day to day life and ensuring the product is easy to use. INFORMATION DELIVERY PROCESS
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7 3.8.2. CUSTOMER SUPPORT PROCESS The product relies on being user friendly, and the vision is to improve the lives of those potentially affected by NIHL. Without close customer support, the product would lose a personal connection that is ever important in the medical field. CUSTOMER SUPPORT PROCESS
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8 3.9 Functionalities 3.9.1. INFORMATI ON DELI VERY PROCESS Deliver relevant information Distinguish between different customers 3.9.2. CUSTOMER SUPPORT PROCESS Rate customer satisfaction Refer customer concerns 3.10 Systems
3.10. 1. CUSTOMER ORGANISATI ON SYSTEM Will accept customer orders and relay that information so that a personal account can be crafted. It supports the functionalities for the information delivery process which supports the vision that the a customers relationship with the product should be user friendly in all aspects. This system also keeps detailed records to aids in transaction processing systems. 3.10. 2. CUSTOMER SUPPORT SYSTEM - Will be available to support clients who have questions or concerns regarding the product. This relates to the customer support process functionalites and serve to promote the vision by being the most user friendly device on the maket and improving a customers experience. In addition to guiding the firms decision making processes by anyalsing customer feedback. 3.10. 3. CUSTOMER FEEDBACK SYSTEM Involves checking with customers and surveying them to improve the product. This system supports the functionalities for the customer support process system and builds a personal account of their relationship with the company. This advocates for the vision by providing a user friendly experience with an aim to continually improve its product and the lives of its customers. Customer feedback can also guide descision making in both products and customer service. tp--------------------------- ----------------------------
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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)
Service After Sale 1. Information Delivery Process 1. Deliver relevant information
2. Distinguish between different customers
Customer Organisation System
Customer Organisation System
Customer Relationship Management (CRM)
CRM 2. Customer Support Process 1. Recive customer satisfaction feedback
2. Solve customer concerns Customer Feedback system
Customer Support system CRM
CRM
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10 CONCLUSION The world is an exciting place, full of wonderful sounds. The aim of this product is to ensure everybody can enjoy their favorite noise for as long as possible. Using IT to develop and help support a user friendly product is key in todays incredibly competitive market. REFERENCES
1. ACC. (2008). Knowing about your occupational hearing loss. [Brochure]. New Zealand. Retrieved May 20, 2014, from http://www.acc.co.nz/PRD_EXT_CSMP/groups/external_ip/documents/reports_res ults/wim2_065096.pdf
2. About Us. (n.d.). Information about NFD's member organizations and our work for hearing impaired Kiwis. Retrieved May 24, 2014, from http://www.nfd.org.nz/6/About-Us
3. Cochlear implant. (n.d.). University of Maryland Maryland Medical Centre. Retrieved May 20, 2014, from http://umm.edu/programs/hearing/services/cochlear-implant
4. Funding for Hearing Aids. (n.d.). Retrieved May 20, 2014, from http://www.audiology.org.nz/hearing-aid-funding.aspx
5. Inject Design. (n.d.). Inject Design. Retrieved May 24, 2014, from http://www.injectdesign.co.nz/
6. Kirkwood, D. (2012, June 20). The hearing aid industry's inconvenient truth: A wake- up call for the independent practitioner. Hearing Views. Retrieved May 20, 2014, from http://hearinghealthmatters.org/hearingviews/2012/the-hearing-aid- industrys-inconvenient-truth-a-wake-up-call-for-the-independent-practitioner-3
7. Kirkwood, D. (2013, July 13). Research firm analyzes market share, retail activity, and prospects of major hearing aid manufacturers. Hearing News Watch. Retrieved May 20, 2014, from http://hearinghealthmatters.org/hearingnewswatch/2013/research-firm-analyzes- market-share-retail-stores-prospects-of-major-hearing-aid-makers/
8. Providing independent, professional information and advice on managing hearing loss and other hearing related concerns. (n.d.). Official site of The Hearing
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11 Association (Auckland) inc | Hearing Auckland. Retrieved May 24, 2014, from http://www.hearingauckland.co.nz
9. Smith, A. (2004). The fifteenth most serious health problem in the WHO perspective. Presentation to IFHOH World Congress, Helsinki, July 2004. Available at http://www.kuulonhuoltoliitto.fi/tiedoston_katsominen.php?dok_id=150.
10. Thorne, P. (2006). Noise induced hearing loss: final report. Auckland: Uniservices. Retrieved April 5, 2014 from http://www.acc.co.nz/PRD_EXT_CSMP/groups/external_ip/documents/reports_res ults/wim2_065096.pdf 11. Thorne, P., Ameratunga, S., Stewart, J., Reid, N., Williams, W., Purdy, S., et al. (2008). Epidemiology of noise-induced hearing loss in New Zealand. The New Zealand Medical Journal, 121(1280). Retrieved May 22, 2014, from http://www.nzma.org.nz/journal/121-1280/3211/ 12. Vision and Mission. (n.d.). - Bernafon Australia. Retrieved May 24, 2014, from http://www.bernafon.com.au/Consumers/A
13. Why do hearing aids cost so much?. (2012, Spring). Hearing Matters, 15, 11. Retrieved May 20, 2014, from http://www.nfd.org.nz/site_resources/library